Understanding Unfair Dismissal Awards: What You Need To Know

unfair dismissal awards are a form of compensation that is awarded to employees who have been unlawfully terminated from their jobs. This can happen for a variety of reasons, such as discrimination, harassment, retaliation, or simply because the employer did not follow proper procedures when terminating the employee. In any case, unfair dismissal awards are meant to compensate the employee for the loss of their job and any other damages they may have suffered as a result of being unfairly dismissed.

When an employee is unfairly dismissed, they have the right to file a claim with an employment tribunal. The tribunal will then decide whether the dismissal was unfair and if so, what kind of award should be given to the employee. There are different types of awards that can be given, depending on the circumstances of the case.

One common type of award is known as a basic award. This is a statutory amount that is calculated based on the employee’s age, length of service, and weekly pay. The maximum amount that can be awarded is currently £16,320, although this figure is subject to change. The purpose of the basic award is to compensate the employee for their loss of earnings and to ensure that they can continue to support themselves while they look for another job.

In addition to the basic award, the tribunal may also award what is known as a compensatory award. This is meant to compensate the employee for any financial losses they have suffered as a result of being unfairly dismissed. This can include things like lost wages, benefits, and bonuses, as well as any costs associated with finding a new job. There is no upper limit on the amount that can be awarded as a compensatory award, although it is typically capped at one year’s salary.

In some cases, the tribunal may also award what is known as a loss of statutory rights award. This is meant to compensate the employee for any loss of statutory rights that occurred as a result of being unfairly dismissed. For example, if the employee lost their right to a pension or other benefits when they were dismissed, they may be entitled to additional compensation to make up for these losses.

It is important to note that unfair dismissal awards are not automatic. The employee must prove to the tribunal that they were unfairly dismissed and provide evidence to support their claim. This can include things like witness statements, emails, performance reviews, and any other relevant documents. The tribunal will then review the evidence and make a decision based on the merits of the case.

Employers should also be aware that there are consequences for unfairly dismissing an employee. In addition to having to pay unfair dismissal awards, employers may also be subject to fines, penalties, and even legal action. This can have serious financial and reputational consequences for the business, so it is in the employer’s best interest to follow proper procedures when terminating an employee.

In conclusion, unfair dismissal awards are an important form of compensation for employees who have been unlawfully terminated from their jobs. They are meant to ensure that the employee is fairly compensated for their loss and to hold employers accountable for their actions. Employers should be aware of their obligations to their employees and take steps to prevent unfair dismissals from happening in the first place. By doing so, they can avoid costly legal battles and maintain a positive workplace culture.