Unfair dismissal is a situation when an employer terminates an employee’s contract in a way that is considered to be harsh, unjust or unreasonable. In such cases, an employee may be entitled to receive a compensatory award to make up for the financial losses incurred as a result of the unfair dismissal. This article will explore the concept of unfair dismissal compensatory award and how it is calculated.
In cases of unfair dismissal, employees may seek financial compensation from their former employers through an employment tribunal or court. The compensatory award is meant to cover the financial losses that the employee has suffered as a result of being unfairly dismissed. This may include loss of earnings, loss of benefits, and any other financial losses directly related to the unfair dismissal.
When determining the amount of the compensatory award, the tribunal or court will take into account a number of factors. These factors may include the length of the employee’s service, the employee’s age and salary, the circumstances of the dismissal, and the likelihood of the employee finding new employment. The compensatory award is intended to put the employee in the financial position they would have been in if they had not been unfairly dismissed.
In some cases, the compensatory award may also include an element to compensate the employee for any non-financial losses suffered as a result of the unfair dismissal. This could include damage to the employee’s reputation, loss of career prospects, or emotional distress caused by the dismissal. The amount awarded for non-financial losses will vary depending on the circumstances of each case.
It is important to note that there is a statutory cap on the compensatory award that can be awarded in unfair dismissal cases. As of April 2021, the maximum compensatory award is £89,493 or 52 weeks’ gross pay – whichever is lower. This cap is subject to change and it is important to consult a legal professional for the most up-to-date information on compensatory award limits.
In addition to the compensatory award, employees who have been unfairly dismissed may also be entitled to a basic award. The basic award is calculated based on the employee’s length of service, their age, and their weekly pay. The statutory cap on the basic award is £16,320 as of April 2021. The basic award is intended to compensate the employee for their loss of job security as a result of the unfair dismissal.
When seeking a compensatory award for unfair dismissal, it is important to gather evidence to support your claim. This could include copies of your employment contract, pay slips, and any correspondence related to the dismissal. It may also be helpful to seek advice from an employment law solicitor who can guide you through the claims process and represent you in any tribunal or court proceedings.
Overall, the compensatory award for unfair dismissal is intended to provide financial compensation to employees who have been unfairly dismissed from their jobs. The amount of the award will depend on a number of factors, including the employee’s length of service, salary, and the circumstances of the dismissal. It is important for employees who believe they have been unfairly dismissed to seek legal advice and explore their options for claiming a compensatory award.
In conclusion, unfair dismissal compensatory award is an important aspect of employment law that aims to provide financial compensation to employees who have been unfairly dismissed. By understanding how the compensatory award is calculated and seeking professional advice, employees can ensure that they receive the appropriate compensation for their losses.