When an employee is wrongfully terminated from their job, they may be entitled to receive compensation through what is known as an unfair dismissal compensatory award. This financial award is designed to help compensate the employee for the losses they have incurred as a result of the unfair dismissal. In this article, we will take a closer look at what the unfair dismissal compensatory award entails and how it is calculated.
Unfair dismissal occurs when an employee is dismissed from their job in a way that breaches their employment rights. This could include being fired for discriminatory reasons, for taking sick leave, for whistleblowing, or for any other unlawful reason. In such cases, the employee may be able to bring a claim for unfair dismissal against their employer.
If the employee is successful in proving that their dismissal was unfair, they may be entitled to receive a compensatory award. This award is designed to put the employee back in the financial position they would have been in if they had not been unfairly dismissed.
There are two components to the compensatory award: the basic award and the compensatory award. The basic award is calculated based on the employee’s age, length of service, and weekly pay. The compensatory award, on the other hand, is calculated based on the financial losses the employee has suffered as a result of the unfair dismissal.
The compensatory award aims to compensate the employee for both their financial losses and their non-financial losses, such as loss of reputation, loss of job security, and loss of career prospects. It is important to note that there is a cap on the compensatory award, which is currently set at £88,519 or 52 weeks’ pay, whichever is lower.
In order to calculate the compensatory award, the employment tribunal will look at a number of factors, including the employee’s age, length of service, salary, and the circumstances surrounding the dismissal. The tribunal will consider the employee’s efforts to find alternative employment and whether they mitigated their losses by accepting suitable job offers.
In some cases, the compensatory award may also include an amount for injury to feelings. This is intended to compensate the employee for the emotional distress they have suffered as a result of the unfair dismissal. The amount awarded for injury to feelings will depend on the severity of the emotional distress and the impact it has had on the employee.
It is important to keep in mind that the compensatory award is not automatic and that the employee will need to prove that they have suffered losses as a result of the unfair dismissal. This is why it is crucial for employees to keep careful records of their financial losses, as well as any evidence of the circumstances surrounding their dismissal.
If an employee is successful in proving that they were unfairly dismissed, they may also be entitled to receive a basic award. This award is calculated based on the employee’s age, length of service, and weekly pay, and is subject to a maximum cap of £16,320.
In addition to the compensatory award and the basic award, the employment tribunal may also order the employer to pay the employee’s legal costs. This is intended to help offset the financial burden of bringing a claim for unfair dismissal and to ensure that employees have access to justice.
In conclusion, the unfair dismissal compensatory award is a form of financial compensation available to employees who have been wrongfully terminated from their jobs. This award is designed to help compensate the employee for the losses they have suffered as a result of the unfair dismissal, both financial and non-financial. If you believe you have been unfairly dismissed, it is important to seek legal advice to understand your rights and options for seeking compensation through the unfair dismissal compensatory award.