Employment tribunals are used as a means of resolving disputes between employees and employers. One of the most common types of claims brought before employment tribunals is for unfair dismissal. Unfair dismissal occurs when an employer terminates an employee’s contract of employment in a way that is considered to be harsh, unjust or unreasonable. Employees who believe they have been unfairly dismissed can seek compensation through an employment tribunal. In this article, we will explore the process of making a claim for unfair dismissal and the potential awards that can be granted.
To make a claim for unfair dismissal, an employee must have been employed for a minimum of two years (or one year if they started before 6 April 2012) and must make their claim within three months of the date of their dismissal. The first step in the process is for the claimant to notify ACAS, the Advisory, Conciliation and Arbitration Service, of their intention to make a claim. ACAS will then offer early conciliation in an attempt to resolve the dispute without the need for a tribunal hearing. If a settlement cannot be reached, the claimant can proceed to lodge a claim with the employment tribunal.
Once a claim has been lodged, the tribunal will consider the evidence presented by both parties and make a decision on whether the dismissal was unfair. If the tribunal finds in favor of the claimant, they will then determine the amount of compensation that should be awarded. The amount of compensation awarded in unfair dismissal cases can vary depending on a number of factors including the length of the employee’s service, their age, their salary and their chances of finding alternative employment.
There are two types of award that can be granted in unfair dismissal cases – a basic award and a compensatory award. The basic award is calculated based on the employee’s age, length of service and weekly pay, and is subject to a maximum limit set by the government. As of April 2021, the maximum basic award is £16,320. The compensatory award is designed to compensate the employee for any financial losses they have suffered as a result of their dismissal, such as loss of earnings and benefits. The compensatory award is uncapped and can be substantial in cases where the employee has been out of work for a long period of time.
In addition to the basic and compensatory awards, employment tribunals also have the power to make additional awards in certain circumstances. For example, if the employer has failed to follow the correct procedures when dismissing the employee, the tribunal may make a ‘Polkey’ deduction to reduce the amount of compensation awarded. Similarly, if the employer has acted unreasonably in the way they have handled the dismissal, the tribunal may make a ‘Vento’ award to compensate the employee for any injury to their feelings.
It is important to note that employment tribunal awards for unfair dismissal are not taxable, and do not affect a claimant’s entitlement to state benefits. However, it is essential to seek legal advice before making a claim, as there are strict time limits and procedures that must be followed. Employers should also be aware of their obligations and seek legal advice if they are faced with a claim for unfair dismissal.
In conclusion, employment tribunal awards for unfair dismissal can vary depending on the individual circumstances of each case. Employees who believe they have been unfairly dismissed have the right to seek compensation through the employment tribunal, and may be entitled to both a basic award and a compensatory award. It is important for both employees and employers to understand the process of making a claim for unfair dismissal and seek legal advice to ensure their rights are protected.