If you are successful in a claim for Unfair Dismissal, there are a variety of remedies available which extend beyond financial compensation. Read on for more….
What Remedies Are Available?
If you have succeeded in your claim for Unfair Dismissal, there are three potential remedies the Employment Tribunal can consider. These are: –
Whilst many claimants only want to recover compensation, there are very good reasons why reinstatement or re-engagement should be considered. The key reasons include being able to recover loss of earnings which can exceed the statutory cap (presently set at £93,878), along with the potential for an additional award if the employer refuses to comply with an order for reinstatement or re-engagement.
What Is Reinstatement?
Section 114 (1) of the Employment Rights Act 1996 deals with orders for reinstatement. The section reads: –
“An order for reinstatement is an order that the employer shall treat the complainant in all respects as if he had not been dismissed”.
The impact of this is huge. Not only will the claimant be entitled to arrears of pay for the period between the original dismissal and the reinstatement, but they must be re-employed on the same terms of employment with no loss of pay, benefits, pension rights or continuity of employment. For employees with a high salary, employees in a particularly niche role, or those with very attractive employment benefits, reinstatement should always be carefully considered as a possible remedy.
What is Re-engagement?
Section 115 (1) of the Employment Rights Act 1996 deals with orders for re-engagement. The section reads: –
“An order for re-engagement is an order, on such terms as the tribunal may decide, that the complainant be engaged by the employer, or by a successor of the employer or by an associated employer, in employment comparable to that from which he was dismissed or other suitable employment”.
If an order of this kind is made, the Employment Tribunal must go on to specify the terms of re-engagement, dealing with the following matters set out in Section 115 (2) of the Act: –
“(a) the identity of the employer,
(b) the nature of the employment,
(c) the remuneration for the employment,
(d) any amount payable by the employer in respect of any benefit which the complainant might reasonably be expected to have had but for the dismissal (including arrears of pay) for the period between the date of termination of employment and the date of re-engagement,
(e) any rights and privileges (including seniority and pension rights) which must be restored to the employee, and
(f) the date by which the order must be complied with”.
Factors to be Considered for Reinstatement & Re-engagement?
Orders for reinstatement and re-engagement are incredibly rare. In my experience, this is because most claimants don’t want to revisit the past by returning to their previous employer. However, the Employment Tribunal is required to explain the possibility of these orders. Further, section 116 of the Act makes plain that there is nothing stopping an order being made so long as that is the wish of the employee, it is practicable for the employer to manage, and if it is just and equitable for an order to be made considering any contributory fault.
What is Compensation?
If a claimant does not wish to be reinstated or re-engaged then the Employment Tribunal will consider an award simply for compensation.
Compensation for Unfair Dismissal is made up of the basic award, and the compensatory award. For a detailed explanation of these heads of compensation, see my earlier blog at – https://lincslaw.co.uk/blog/how-is-unfair-dismissal-compensation-calculated/.
Lincs Law Employment Solicitors Can Help You
If you are preparing for an Employment Tribunal hearing and need help assessing and maximising your losses, please contact us for a free, no obligation consultation with one of our fully qualified employment solicitors. Simply use the contact form, engage in a webchat, email firstname.lastname@example.org or call us on 01522 440512 and we will be happy to help.
Sophie Goodwill, Director, Specialist Employment Law Solicitor
Lincs Law Employment Solicitors