Unfair dismissal is a serious issue that can have profound financial and emotional consequences for the affected employees In cases where an employee has been unfairly dismissed, they may be entitled to receive compensation in the form of a compensatory award This article will explore what a compensatory award is, how it is calculated, and what factors are taken into consideration when determining the amount.
The compensatory award is a monetary award that is given to an employee who has been unfairly dismissed from their job It is intended to compensate the employee for the financial losses they have suffered as a result of the unfair dismissal The amount of the compensatory award can vary depending on the circumstances of the case, but it is generally designed to put the employee back in the position they would have been in had they not been unfairly dismissed.
There are two main components to the compensatory award: the basic award and the compensatory award proper The basic award is a statutory payment that is calculated based on the employee’s age, length of service, and weekly pay The compensatory award proper, on the other hand, is designed to compensate the employee for any actual financial losses they have suffered as a result of the unfair dismissal.
When calculating the compensatory award proper, the employment tribunal will take into account a number of factors These may include the employee’s loss of earnings, any loss of pension rights, the cost of finding a new job, and any other financial losses the employee has incurred as a result of the unfair dismissal The tribunal will also consider the employee’s efforts to mitigate their losses, such as by looking for alternative employment.
In addition to financial losses, the compensatory award may also take into account non-financial factors For example, if the employee has suffered emotional distress as a result of the unfair dismissal, they may be entitled to receive compensation for this compensatory award unfair dismissal. The tribunal may also consider the impact of the dismissal on the employee’s reputation and future job prospects.
It is important to note that there is a statutory cap on the compensatory award that can be awarded in unfair dismissal cases As of 2021, the maximum compensatory award is £89,493, or 52 weeks’ pay, whichever is lower This means that even if an employee’s actual financial losses exceed this amount, the tribunal will not be able to award more than the statutory cap.
In some cases, an employee may also be entitled to receive a reinstatement or re-engagement order as part of their compensatory award This means that the employee will be reinstated to their former position or re-engaged in a similar role with the same employer However, these orders are rare and are usually only granted if both parties agree to them.
Overall, the compensatory award in unfair dismissal cases is intended to provide a measure of justice for employees who have been unfairly dismissed from their jobs It is designed to compensate the employee for their financial losses and any emotional distress they have suffered as a result of the dismissal While the amount of the compensatory award can vary depending on the circumstances of the case, it is important for employees to be aware of their rights and to seek legal advice if they believe they have been unfairly dismissed.
In conclusion, the compensatory award in unfair dismissal cases is a crucial form of redress for employees who have been unfairly treated by their employers It is designed to compensate employees for the financial and emotional losses they have suffered as a result of the dismissal, and to put them back in the position they would have been in had they not been unfairly dismissed By understanding how the compensatory award is calculated and what factors are taken into consideration, employees can ensure that they receive fair and just compensation in the event of an unfair dismissal.