Being dismissed from your job can be a devastating experience, both financially and emotionally. However, in certain cases where it is deemed unfair by employment tribunals, employees may be entitled to compensation in the form of an unfair dismissal award. This award is designed to provide some level of redress for the unfair treatment experienced by the employee. In this article, we will delve into the details of unfair dismissal awards, when they are applicable, and how they are calculated.
Unfair dismissal occurs when an employee is terminated from their job in a manner that is considered to be harsh, unjust, or unreasonable. This can include being fired without just cause, being subjected to discrimination or harassment, or being dismissed for exercising their legal rights, such as taking maternity or paternity leave. If an employee believes they have been unfairly dismissed, they have the right to challenge their dismissal by lodging a claim with an employment tribunal.
If the tribunal finds in favor of the employee and determines that the dismissal was indeed unfair, they may award the employee compensation in the form of an unfair dismissal award. The purpose of this award is to compensate the employee for the financial losses incurred as a result of the unfair dismissal, as well as to acknowledge the emotional distress and inconvenience caused by the situation.
There are several factors that are taken into consideration when calculating the amount of an unfair dismissal award. These factors can include the length of the employee’s service with the company, their age, the circumstances surrounding the dismissal, the employee’s efforts to find alternative employment, and any contributory conduct on the part of the employee. The maximum amount that can be awarded as an unfair dismissal award is currently £89,493 (as of April 2021), although this figure is subject to change.
It is important to note that not all unfair dismissal claims result in a monetary award. In some cases, the tribunal may instead order the employer to reinstate the employee to their former position or to re-engage them in a comparable role. This is known as a remedy order and is designed to restore the employee to their rightful position within the company.
In addition to compensation for financial losses, unfair dismissal awards can also include compensation for injury to feelings. This aspect of the award is intended to acknowledge the emotional distress and humiliation suffered by the employee as a result of the unfair dismissal. The amount awarded for injury to feelings can vary depending on the severity of the emotional impact experienced by the employee.
Employers have a legal obligation to ensure that they follow fair and reasonable procedures when dismissing an employee. This includes providing the employee with clear reasons for their dismissal, giving them an opportunity to respond to any allegations made against them, and allowing them to be accompanied by a colleague or union representative during disciplinary hearings. Failure to adhere to these procedures can result in the dismissal being deemed unfair and can lead to the employer being ordered to pay compensation to the employee.
In conclusion, unfair dismissal awards are a form of compensation designed to provide redress to employees who have been unfairly dismissed from their jobs. These awards can include compensation for financial losses, injury to feelings, and other forms of redress. It is important for employees to be aware of their rights in cases of unfair dismissal and to seek legal advice if they believe they have been unfairly dismissed. Ultimately, unfair dismissal awards serve to uphold the rights of employees and to ensure that employers are held accountable for their actions.