Being sacked from a job can be a distressing experience for anyone. But when an individual believes that they were unfairly dismissed, they have the option to seek justice through an employment tribunal. Employment tribunals are independent judicial bodies that have the authority to make decisions on disputes between employers and employees, including cases of unfair dismissal. In such cases, the tribunal can award compensation to the employee if it finds that the dismissal was unjustified.
Unfair dismissal occurs when an employer terminates an employee’s contract of employment without having a valid reason or without following the correct procedures. There are certain characteristics that make a dismissal unfair under the law, such as discrimination, whistleblowing, trade union membership, pregnancy, maternity, or taking part in industrial action. If an employee feels that they have been dismissed unfairly, they can bring a claim to an employment tribunal seeking reinstatement, compensation, or both.
When an employment tribunal finds in favor of the employee in a case of unfair dismissal, it can make various types of awards to compensate the individual for the loss they have suffered. These awards are intended to reflect both the financial and non-financial impact of the unfair dismissal on the employee. The amount of compensation awarded will depend on the circumstances of the case and the impact of the dismissal on the individual.
One of the main types of employment tribunal awards for unfair dismissal is the basic award. This award is calculated based on the employee’s age, length of service, and weekly pay, up to a maximum limit set by law. The maximum amount of the basic award is currently £16,320, although this figure is subject to annual review and adjustment. The basic award is intended to compensate the employee for the financial loss they have suffered as a result of being unfairly dismissed.
In addition to the basic award, an employment tribunal can also make a compensatory award to the employee. The compensatory award is designed to reflect the actual financial loss that the employee has suffered as a result of the unfair dismissal. This can include loss of earnings, loss of benefits, and any other financial consequences of being dismissed. There is no upper limit on the compensatory award, but it is subject to a maximum cap, which is currently set at £89,493 or one year’s gross salary, whichever is lower.
In certain circumstances, an employment tribunal can also make an additional award known as a ‘Polkey award’. This award is named after the case of Polkey v A E Dayton Services Ltd and is intended to compensate the employee for any procedural defects in the dismissal process. The amount of a Polkey award will depend on the extent to which the dismissal process was flawed and the impact of those flaws on the outcome of the case.
When making an award for unfair dismissal, an employment tribunal will consider a range of factors to determine the appropriate level of compensation. These can include the circumstances of the dismissal, the employee’s age, length of service, and salary, the availability of alternative employment, and any mitigation steps taken by the employee to find new work. The tribunal will also take into account the employee’s conduct during the dismissal process and any contributory factors that may have led to the dismissal.
It is important to note that an employment tribunal award for unfair dismissal is not automatic. The employee must prove that they were unfairly dismissed and that the dismissal was unjustified. This can involve presenting evidence, calling witnesses, and cross-examining the employer’s case. The tribunal will then make a decision based on the balance of probabilities, taking into account all the evidence presented.
In conclusion, employment tribunal awards for unfair dismissal are a vital mechanism for ensuring that employees are treated fairly in the workplace. If an individual believes that they have been unfairly dismissed, they have the right to seek justice through the tribunal system. By understanding the types of awards available and the factors that can influence the amount of compensation awarded, employees can be better prepared to navigate the process and secure a fair outcome.