employment tribunal awards for unfair dismissal can be a source of confusion and frustration for both employers and employees. When an employee feels that they have been unfairly dismissed from their job, they have the right to bring a claim against their employer in front of an employment tribunal. If the tribunal finds in favor of the employee, they may be awarded compensation for their unfair dismissal.
What is unfair dismissal?
Unfair dismissal occurs when an employee is dismissed from their job in a way that is considered to be harsh, unjust or unreasonable. There are a number of reasons that can lead to an employee being unfairly dismissed, such as discrimination, whistleblowing, or exercising their legal rights, such as taking maternity or paternity leave.
What can an employment tribunal award for unfair dismissal?
If an employment tribunal finds that an employee has been unfairly dismissed, they have the power to award compensation to the employee. This compensation can include both a basic award and a compensatory award.
The basic award is calculated based on the employee’s age, length of service, and weekly pay. It is capped at £16,320 as of 2021 and is tax-free. The compensatory award, on the other hand, is designed to compensate the employee for the financial losses they have suffered as a result of their unfair dismissal. This can include loss of earnings, loss of benefits, and future loss of earnings.
In addition to the basic and compensatory awards, an employment tribunal may also award the employee their legal costs if they are successful in their claim. This means that the employer may have to pay for the employee’s legal fees on top of the compensation awarded.
Factors considered by the tribunal in determining the award amount
When deciding on the amount of compensation to award to an employee for unfair dismissal, the employment tribunal will take a number of factors into consideration. These factors can include:
– The employee’s length of service with the employer
– The reason for the dismissal
– The employee’s age
– The employee’s pay and benefits
– Whether the employer followed a fair procedure in dismissing the employee
– The employee’s efforts to mitigate their losses by finding new employment
– Any exemplary damages that should be awarded for particularly egregious conduct on the part of the employer
It is important to note that there is no set formula for calculating employment tribunal awards for unfair dismissal, and each case will be judged on its own merits. This can make it difficult to predict how much compensation an employee may be awarded if they are successful in their claim.
Is there a cap on employment tribunal awards for unfair dismissal?
As mentioned earlier, there is a cap on the basic award for unfair dismissal, which is currently set at £16,320. However, there is no cap on the compensatory award, meaning that the amount of compensation an employee may be awarded can vary widely depending on the circumstances of their case.
Can an employer appeal against an employment tribunal award for unfair dismissal?
If an employer disagrees with the decision of an employment tribunal to award compensation to an employee for unfair dismissal, they may have the right to appeal against the decision. However, the grounds for appeal are limited, and the process can be complex and costly.
It is important for employers to seek legal advice before deciding whether to appeal against an employment tribunal award for unfair dismissal. Failing to do so can result in further costs and potentially damage the employer’s reputation.
In conclusion, employment tribunal awards for unfair dismissal can be a complex and challenging process for both employers and employees. It is important for both parties to understand their rights and obligations when it comes to unfair dismissal claims, and to seek legal advice if necessary. By following the correct procedures and acting fairly and reasonably, employers can reduce the risk of facing a claim for unfair dismissal and mitigate the potential costs of compensation awards.