When an employee feels that they have been unfairly dismissed by their employer, they have the option to bring a claim to an employment tribunal. If the tribunal finds in favor of the employee, they may be awarded compensation for unfair dismissal. These awards are designed to compensate the employee for the financial losses they have suffered as a result of their dismissal, as well as any non-financial losses such as damage to their reputation or emotional distress.
The amount of compensation awarded by an employment tribunal for unfair dismissal can vary depending on a number of factors. These factors include the length of the employee’s service, the circumstances surrounding their dismissal, and the impact that the dismissal has had on their life. In some cases, the tribunal may also take into account the employee’s age, salary, and the availability of other job opportunities.
The maximum compensatory award for unfair dismissal in the UK is currently £89,493, but this figure is subject to change. In addition to the compensatory award, the tribunal may also order the employer to pay a basic award, which is calculated based on the employee’s age, length of service, and weekly pay. The maximum basic award is currently £16,320, but this figure is also subject to change.
In some cases, the tribunal may also order the employer to pay an additional award known as a “Polkey” award. This award is designed to compensate the employee for loss of earnings that could have been avoided if the employer had followed proper procedures when dismissing them. The amount of a Polkey award is calculated based on the tribunal’s assessment of how likely it is that the employee would have been dismissed even if the proper procedures had been followed.
There are also other types of awards that can be made by an employment tribunal in cases of unfair dismissal. These include awards for injury to feelings, aggravated damages, and exemplary damages. Injury to feelings awards are designed to compensate the employee for any emotional distress they have suffered as a result of their dismissal. Aggravated damages may be awarded if the tribunal finds that the employer’s conduct was particularly egregious or malicious. Exemplary damages may be awarded in cases where the employer’s conduct was so serious that it warrants punishment.
It is important to note that the amount of compensation awarded by an employment tribunal for unfair dismissal is not intended to punish the employer, but rather to compensate the employee for the losses they have suffered. The tribunal will take into account the employee’s financial circumstances, including any earnings they have received since their dismissal, when determining the amount of compensation to be awarded.
In addition to financial compensation, the tribunal may also order the employer to provide the employee with reinstatement or re-engagement. Reinstatement involves the employee returning to their previous position as if they had never been dismissed, while re-engagement involves the employee being offered a new position within the company. However, these remedies are relatively rare, as they require the cooperation of both parties.
In conclusion, employment tribunal awards for unfair dismissal are designed to compensate employees who have been unfairly dismissed by their employers. The amount of compensation awarded can vary depending on a number of factors, including the length of the employee’s service and the impact of the dismissal on their life. While financial compensation is the most common form of award, the tribunal may also order other remedies such as reinstatement or re-engagement. Ultimately, the goal of these awards is to ensure that employees are treated fairly and justly in the workplace.