Before getting geared up to claim Unfair Dismissal, you should have a basic understanding of the realistic value of your claim. This post explores the compensation the Employment Tribunal may award, and highlights why expert advice, from our specialist solicitors, could see you reach a far more positive outcome than expected.
If you are considering a claim for Unfair Dismissal, you should have an idea of what your claim might be worth and how the Employment Tribunal will calculate your compensation. There are many factors that can increase or decrease the compensation an Employment Tribunal may ultimately award you. However, as a general rule, your main compensation is broken into two categories known as the basic award and the compensatory award.
Basic Award and Compensatory Award
The basic award is calculated by reference to your age, your full years of service and your gross weekly wage. By way of illustration, an employee aged 30, with 5 years of service, earning £400 gross per week would have a basic award of 1 (age multiplier) x 5 (full years service) x £400 (gross weekly) wage = £2,000. The maximum basic award for a claim of ordinary Unfair Dismissal is presently £16,320 and there are minimum basic awards for unfair dismissals in particular circumstances.
The compensatory award is calculated by reference to your net loss of earnings and loss of benefits like car allowance, pension etc.. should also be factored in here. You must have suffered a genuine loss and are required to show that you have done all you can to keep your losses to a minimum. By way of example, if an employee earned £600 net per week and could show genuine losses over 23 weeks, their compensatory award would be £13,800. The maximum compensatory award for an ordinary Unfair Dismissal claim is presently £89,493 or 1 year salary, whichever is lowest.
The Employment Tribunal also award some nominal figures for loss of statutory employment protection and expenses.
Increases & Decreases?
As I have said above there are a wide range of factors that can increase and decrease awards. These include the Employment Tribunal finding that you contributed to your own dismissal (contributory fault), either party failing to follow the ACAS Code on Discipline and Grievance, a failure to keep losses to a minimum (mitigation of losses), offsets for monies already received such as redundancy payments or ex-gratia payments, a reduction to compensation on the ground that a dismissal was only procedurally unfair and that a fair process would have had no impact, amongst others.
The above information is provided as a general guide and if you are pursuing a claim you should always take detailed legal advice before seeking a specific sum of compensation.
Real Life Example…
I acted for a client who was pursuing a claim for unfair dismissal and was seeking a basic award based on 3 years of service. The basic award figure was in the region of £1,050.00. However, when I discovered the circumstances surrounding the dismissal, I felt that there was a legitimate argument to seek a “minimum basic award” which is sometimes in applicable in special cases (such as health and safety dismissals). My advice saw my client’s settlement package increase significantly because of the recalculation of the basic award which rose from £1,050.00 to at that time £5,970.00.
Can Lincs Law Employment Solicitors Help You?
If you are considering a claim in the Employment Tribunal and would like information about the value of your claim, we would be delighted to assist you. For a free telephone consultation, please do not hesitate to call 01522 440512. Alternatively, for more information Unfair Dismissal, visit https://lincslaw.co.uk/services/employees/resignation-dismissal-and-redundancy/unfair-dismissal/
Specialist Employment Law Solicitor
Lincs Law Employment Solicitors
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