Unfair Dismissal Compensation

By Wayne On November 9, 2011 Under Unfair Dismissal, Unfair Dismissal Compensation

If you have lost your job for reasons that are not exactly on the level, you might be entitled to unfair dismissal compensation. To find out, you must first check if you qualify for protection, then check if the dismissal qualifies as unfair. If the answer is yes to both, a tribunal will decide the appropriate compensation based on a number of factors.

What Are The Requirements To Qualify For Unfair Dismissal Compensation

There are some basic requirements for an employee to qualify for unfair dismissal compensation. An employee must have worked full or part-time, however, the actual amount of hours each week does not matter. The continuous employment must span at least one year. Finally, the job have to have ended no more than three months ago, as an employee must make the claim within 3 months of the unfair dismissal.

Exceptions To The One Year Continuous Employment Rule

The most stringent of the requirements to qualify for unfair dismissal compensation is the one year continuous employment rule. However, if you do not live up to it, you should not give up quite yet, as there is a lengthy list of exceptions to the rule. For example, if your dismissal was related to pregnancy, working time requirements or observing the health and safety rules, the one year rule is void.

Test Of Unfair Dismissal

To assess whether a dismissal qualifies as unfair, a two stage test can be constructed. If the answer is “no” to either question, it does qualify as unfair.

First, was a fair reason given for the dismissal? If the dismissal was, indeed, for a fair reason, the second question would be: Was it dealt with fairly?

The second question implies that an employer might have a valid reason, but dealt with the process in an unfair manner. In this case, an unfair dismissal claim can still be made.

Different Types Of Unfair Dismissal Compensation

An unfair dismissal can result in three different outcomes, by far the most common is the unfair dismissal compensation, the other two are reinstatement and re-engagement.

With reinstatement an employment tribunal will give back the employee his or her old job and pay a certain amount of compensation, due to loss of income while unemployed. Re-engagement is similar, as the employee will return to work for the employer in a similar position.

Since an employment tribunal will be reluctant to force both an employer and an employee back to what might be a untenable situation, compensation is the most likely outcome.

The Factors That Decide The Size Of The Unfair Dismissal Compensation

A lot of different factors will determine the amount of compensation awarded. Three basic factors are average weekly pay, age of the employee and years of service. Furthermore, the tribunal will consider loss of future wages, loss of benefits and costs related to the dismissal.

Of course, there is also the possibility of deductions against the awarded compensation. Deductions can occur if the employee was partly to blame for the dismissal, if the employee refuses to be reinstated and due to unbecoming conduct before the dismissal not necessarily related to the loss of the job.

It is important to understand the requirements and rights you as an employee have. Losing a job is always tough, therefore any compensation will be more than welcome.