When an employee feels that they have been unfairly dismissed from their job, they have the option to take their case to an employment tribunal. These tribunals are impartial bodies that settle disputes between employers and employees related to employment law. If the tribunal finds in favor of the employee, they may be awarded compensation in the form of an employment tribunal award for unfair dismissal.
Unfair dismissal occurs when an employee is dismissed from their job in a manner that is considered to be unjust, unreasonable, or disproportionate. This can include being fired without proper cause, being let go due to discriminatory reasons, or being dismissed in breach of their employment contract. In these cases, employees have the right to seek redress through an employment tribunal.
The amount of compensation awarded in unfair dismissal cases can vary greatly depending on the circumstances of the case. There are two main types of compensation that may be awarded: a basic award and a compensatory award.
The basic award is calculated based on the employee’s age, length of service, and weekly pay. The formula for calculating the basic award is as follows:
– Half a week’s pay for each year of service under the age of 22
– One week’s pay for each year of service between the ages of 22 and 41
– One and a half week’s pay for each year of service over the age of 41
The maximum amount of weekly pay that can be used to calculate the basic award is £544 (as of 2021). This figure is subject to change and may be higher or lower in future years.
The compensatory award, on the other hand, is designed to compensate the employee for any financial losses they have suffered as a result of their unfair dismissal. This can include lost wages, benefits, and bonuses, as well as any future losses the employee may incur as a result of losing their job.
The compensatory award is uncapped, meaning that there is no set limit to how much compensation can be awarded. However, the amount awarded may be reduced if the tribunal determines that the employee did not take reasonable steps to mitigate their losses, such as by seeking alternative employment.
In addition to the basic and compensatory awards, the tribunal may also award additional compensation in the form of a “Polkey award” or a “Vento award.”
A Polkey award is named after the court case Polkey v AE Dayton Services Ltd, which established that if the tribunal finds that the employee would have been dismissed even if the correct procedures were followed, the compensation awarded may be reduced. This is to reflect the fact that the outcome would have been the same regardless of the unfair dismissal.
A Vento award, named after the court case Vento v Chief Constable of West Yorkshire Police, relates to compensation awarded for injury to feelings in cases of discrimination, harassment, or victimization. The amount of a Vento award is divided into three bands based on the severity of the injury to feelings, with the maximum award being £45,600 (as of 2021).
employment tribunal awards for unfair dismissal serve to compensate employees who have been wronged by their employers and deter companies from engaging in unfair employment practices. By understanding the types of awards that can be granted in unfair dismissal cases, employees can better navigate the tribunal process and seek appropriate compensation for their losses.
In conclusion, unfair dismissal can have serious financial and emotional consequences for employees. employment tribunal awards for unfair dismissal provide a means for employees to seek justice and compensation for their losses. By understanding the different types of awards available, employees can make informed decisions about pursuing a case and seeking redress for their unfair treatment in the workplace.