In the world of employment law, unfair dismissal is a serious matter that can have significant consequences for both employees and employers. When an employee is dismissed in a manner that is deemed unfair, they may be entitled to compensation in the form of a compensatory award. This award is designed to provide financial compensation for the losses suffered by the employee as a result of their unfair dismissal. In this article, we will explore the ins and outs of the unfair dismissal compensatory award, including how it is calculated and what factors are taken into consideration.
The unfair dismissal compensatory award is a remedy that is available to employees who have been unfairly dismissed from their jobs. In order to be eligible for this award, the employee must have been employed for at least two years and must have been dismissed in a manner that is considered to be unfair. Unfair dismissal can occur for a variety of reasons, such as discrimination, whistleblowing, or simply because the employer did not follow the correct procedures when dismissing the employee.
When determining the amount of the compensatory award, the employment tribunal will take into account a number of different factors. These factors can include the length of time that the employee has been out of work, the employee’s age and salary, and the efforts that the employee has made to find new employment. The purpose of the compensatory award is to put the employee back in the position that they would have been in if they had not been unfairly dismissed.
Calculating the compensatory award can be a complex process, as there are many different factors that need to be taken into consideration. In general, the award will consist of two separate elements – the basic award and the compensatory award. The basic award is calculated based on the employee’s age, length of service, and weekly pay, while the compensatory award is designed to compensate the employee for their actual financial losses as a result of their unfair dismissal.
In some cases, the compensatory award may also include an amount for injury to feelings. This can occur when the employee has suffered emotional distress as a result of their unfair dismissal. The amount of the award will vary depending on the severity of the emotional distress suffered by the employee.
It is important to note that there is a cap on the amount of the compensatory award that can be awarded to an employee. The current maximum award is £88,519 or 52 weeks’ pay, whichever is lower. This means that even if the employee has suffered losses that exceed this amount, they will only be able to recover up to the maximum limit.
In addition to the compensatory award, the employee may also be entitled to other forms of compensation, such as reinstatement or re-engagement. Reinstatement involves the employee being placed back into their original position as if they had never been dismissed, while re-engagement involves the employee being placed in a different position within the company. These remedies are not as common as the compensatory award, but they can still be sought by employees who have been unfairly dismissed.
Overall, the unfair dismissal compensatory award is an important remedy that is designed to provide financial compensation to employees who have been unfairly dismissed from their jobs. If you believe that you have been unfairly dismissed, it is important to seek legal advice as soon as possible in order to determine whether you are entitled to the compensatory award and other forms of compensation. By understanding the ins and outs of the compensatory award, you can ensure that your rights are protected and that you receive the compensation that you deserve.