Understanding Unfair Dismissal Compensatory Award: What You Need To Know

When an employee is wrongfully terminated from their job, they may be entitled to receive compensation in the form of an unfair dismissal compensatory award. This award is designed to compensate the employee for losses they have suffered as a result of their dismissal. In this article, we will explore the ins and outs of the unfair dismissal compensatory award and what employees need to know if they find themselves in this situation.

Unfair dismissal occurs when an employee is dismissed from their job in a way that is considered to be harsh, unjust, or unreasonable. This can happen for a variety of reasons, such as discrimination, retaliation, or simply a lack of proper cause for termination. When this occurs, employees have the right to seek compensation through an unfair dismissal claim, which may include a compensatory award.

The compensatory award is meant to put the employee back in the financial position they would have been in if they had not been wrongfully dismissed. This can include lost wages, benefits, and other financial losses that the employee has suffered as a result of their dismissal. Additionally, the compensatory award may also include an amount for injury to feelings if the dismissal was especially egregious or discriminatory.

In determining the amount of the compensatory award, the employment tribunal will consider a number of factors, including the employee’s length of service, their salary, the circumstances of their dismissal, and their efforts to mitigate their losses. The goal is to ensure that the employee is fairly compensated for the harm they have suffered as a result of their unfair dismissal.

It is important to note that there is a cap on the amount of 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 losses exceed this amount, they will not be able to receive more than the maximum award.

In addition to the compensatory award, employees may also be entitled to receive a basic award in unfair dismissal cases. The basic award is calculated based on the employee’s length of service, their age, and their weekly pay. As of 2021, the maximum basic award is £16,320.

It is important for employees to be aware of their rights when it comes to unfair dismissal and compensatory awards. If you believe you have been wrongfully dismissed from your job, you should seek legal advice as soon as possible to determine if you have a valid claim for unfair dismissal. An experienced employment solicitor can help you navigate the complexities of the law and ensure that you receive the compensation you are entitled to.

In conclusion, the unfair dismissal compensatory award is a vital form of compensation for employees who have been wrongfully dismissed from their jobs. This award is meant to compensate employees for the financial losses they have suffered as a result of their unfair dismissal and to ensure that they are treated fairly in the aftermath of their termination. If you believe you have been unfairly dismissed, it is important to seek legal advice to determine if you are entitled to a compensatory award and to ensure that your rights are protected.