Unfair dismissal is a term that refers to the termination of an employee’s employment in a manner that is considered to be unjust, unreasonable, or disproportionate When an employee believes they have been unfairly dismissed, they have the right to challenge their dismissal through legal means In cases where an employment tribunal finds in favor of the employee, they may be entitled to receive a compensatory award.
A compensatory award is a sum of money that is intended to compensate the employee for the financial loss they have suffered as a result of their unfair dismissal The amount of the compensatory award will vary depending on a number of factors, including the employee’s length of service, their age, their salary, and the circumstances surrounding their dismissal.
There are two main types of compensatory awards that can be awarded in unfair dismissal cases: the basic award and the compensatory award.
The basic award is calculated based on the employee’s length of service, their age, and their weekly pay The formula for calculating the basic award is as follows:
– Half a week’s pay for each full year of employment under the age of 22
– One week’s pay for each full year of employment between the ages of 22 and 41
– One and a half week’s pay for each full year of employment over the age of 41
The compensatory award, on the other hand, is designed to compensate the employee for the financial loss they have suffered as a result of their unfair dismissal This can include lost earnings, future earnings, benefits, bonuses, and any other financial losses that the employee has incurred as a result of their dismissal.
The compensatory award is designed to put the employee back in the financial position they would have been in had they not been unfairly dismissed This means that the amount of the compensatory award can vary depending on the specific circumstances of the case.
When determining the amount of the compensatory award, the employment tribunal will take into account a number of factors, including:
– The employee’s length of service
– The reason for the dismissal
– The employee’s efforts to find alternative employment
– The employee’s financial losses
– Any contributory conduct on the part of the employee
It is important to note that there is a cap on the compensatory award that can be awarded in unfair dismissal cases compensatory award unfair dismissal. As of 2021, the maximum compensatory award is £89,493 or 52 weeks’ pay – whichever is lower.
In some cases, the compensatory award may also include an element of injury to feelings This is designed to compensate the employee for any psychological harm they have suffered as a result of their unfair dismissal The amount of an injury to feelings award will vary depending on the nature and severity of the harm suffered by the employee.
In conclusion, compensatory awards play a vital role in unfair dismissal cases by providing financial compensation to employees who have been unfairly dismissed These awards are designed to compensate the employee for the financial losses they have suffered as a result of their dismissal and to put them back in the financial position they would have been in had they not been unfairly dismissed The amount of a compensatory award will vary depending on a number of factors, including the employee’s length of service, their salary, and the circumstances surrounding their dismissal If you have been unfairly dismissed and believe you are entitled to a compensatory award, it is important to seek legal advice to understand your rights and options.