Unfair dismissal is a situation where an employee is dismissed from their job in a manner that is considered to be harsh, unjust or unreasonable In cases where an employee believes they have been unfairly dismissed, they may choose to take legal action against their employer One of the potential outcomes of such legal action is the awarding of compensatory damages to the employee by the Employment Tribunal This compensatory award is designed to compensate the employee for losses suffered as a result of the unfair dismissal.
The amount of compensatory award that an employee may be entitled to receive will vary depending on the circumstances of their case The purpose of this article is to provide an overview of what the compensatory award for unfair dismissal entails, how it is calculated, and what factors may be taken into consideration when determining the final amount awarded to the employee.
1 What is the compensatory award for unfair dismissal?
The compensatory award for unfair dismissal is a monetary sum that is intended to compensate the employee for any financial losses they have suffered as a result of being unfairly dismissed from their job These losses may include loss of earnings, loss of benefits, and any other financial detriment that the employee has incurred as a result of the dismissal The compensatory award is meant to put the employee back in the position they would have been in had they not been unfairly dismissed.
2 How is the compensatory award calculated?
The compensatory award for unfair dismissal is calculated based on the financial losses that the employee has suffered as a result of the dismissal unfair dismissal compensatory award. This may include calculating the amount of wages that the employee would have earned had they not been dismissed, any benefits or bonuses that they may have missed out on, and any other financial losses that can be directly attributed to the dismissal.
In addition to financial losses, the Employment Tribunal may also take into consideration the employee’s age, length of service, future job prospects, and any efforts the employee has made to mitigate their losses by finding alternative employment The compensatory award may also include an amount for injury to feelings, especially if the dismissal was found to be particularly harsh or unfair.
3 Factors considered when determining the final amount of compensatory award:
There are several factors that may be taken into consideration when determining the final amount of compensatory award for unfair dismissal These factors may include:
– Length of service: Employees who have been with the company for a longer period of time may be entitled to a higher compensatory award, as they would have had more time to build up their earnings and benefits with the company.
– Age: Older employees may also be entitled to a higher compensatory award, as they may find it more difficult to secure alternative employment.
– Mitigation efforts: Employees are required to take reasonable steps to mitigate their losses by finding alternative employment The compensatory award may be reduced if the employee is found to have not made sufficient efforts to find a new job.
– Future job prospects: The Employment Tribunal may also consider the employee’s future job prospects and the impact that the dismissal may have had on their ability to secure future employment This may also be taken into account when calculating the compensatory award.
In conclusion, the compensatory award for unfair dismissal is an important form of redress for employees who have been unfairly dismissed from their job The award is intended to compensate the employee for financial losses suffered as a result of the dismissal and to put them back in the position they would have been in had they not been dismissed The final amount of the compensatory award will vary depending on the circumstances of the case, with various factors being taken into consideration when determining the final sum awarded to the employee.