When an employee feels they have been unfairly dismissed from their job, they may pursue legal action to seek compensation. In cases of unfair dismissal, employees may be entitled to receive an unfair dismissal award. This award is intended to compensate the employee for loss of income, as well as any emotional distress or damage to their reputation caused by the dismissal. In this article, we will explore what constitutes unfair dismissal, how the award is calculated, and what employees can do if they believe they have been unfairly dismissed.
Unfair dismissal occurs when an employee is fired from their job in a way that is unlawful or considered to be harsh, unjust or unreasonable. This can include being dismissed for reasons such as discrimination, retaliation, whistleblowing, or exercising their legal rights, among others. It is important to note that there are strict time limits for lodging a claim of unfair dismissal. In most cases, employees have three months from the date of dismissal to make a claim to an employment tribunal.
If an employment tribunal finds that an employee has been unfairly dismissed, they may be entitled to receive an unfair dismissal award. This award is designed to compensate the employee for their loss of earnings, as well as any non-financial losses they have suffered as a result of the dismissal. The amount of the award can vary depending on several factors, including the length of the employee’s service, their age, and their salary.
The maximum amount of compensation that can be awarded for unfair dismissal is capped at a statutory limit set by the government. The limit is updated each year and is currently set at £88,519 or 52 weeks’ gross salary – whichever is lower. In addition to the compensatory award, employees may also be entitled to a basic award, which is calculated based on their age, length of service, and weekly gross pay. There is a cap on the basic award as well, which is currently set at £16,320.
In some cases, an employment tribunal may also award an additional amount of compensation known as a “polkey award.” This type of award is designed to compensate the employee for the loss of a fair procedure during the dismissal process. For example, if the employer did not follow the correct procedures or failed to provide the employee with the opportunity to respond to allegations made against them, the tribunal may award a polkey award in addition to the compensatory and basic awards.
It is important to note that not all unfair dismissal claims result in a financial award. In some cases, the employment tribunal may order the employer to reinstate the employee to their former position or to provide them with suitable alternative employment. This is known as a “reinstatement order” or a “re-engagement order,” and is intended to restore the employee to their previous position and compensate them for any losses they have suffered as a result of the dismissal.
If you believe you have been unfairly dismissed from your job, it is important to seek legal advice as soon as possible. A solicitor specialising in employment law can help you understand your rights and advise you on the best course of action to take. They can also assist you in preparing your claim and representing you at an employment tribunal if necessary.
In conclusion, the unfair dismissal award is a form of compensation designed to compensate employees who have been unfairly dismissed from their jobs. If you believe you have been unfairly dismissed, it is important to seek legal advice and take action within the required time limits. By understanding your rights and seeking the appropriate legal representation, you can increase your chances of receiving a fair outcome in your unfair dismissal claim.
Remember, you have the right to challenge unfair dismissal and seek the compensation you deserve.