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Employment issues.

Byline: Joe Michna, Hartlepool Citizens' Advice Bureau manager

COMPENSATION FOR UNFAIR DISMISSAL

Q. I am taking my former employer to an Employment Tribunal for unfair dismissal. If I am successful in my claim how does the tribunal calculate compensation?

A. When awarding compensation, the Employment Tribunal will be guided by a standard formula for calculating unfair dismissal compensation. This formula can be amended or varied depending on the circumstances of the case.

Q. What is the standard formula for calculating compensation?

A. The standard tribunal formula for working out compensation is:

a basic award

a compensatory award made up by

a) Loss of earnings between the date of dismissal and the date of the tribunal hearing - often referred to as immediate loss

b) Estimated future loss of earnings

c) Loss of statutory rights

d) Pension loss

Q. What is the basic award and how is it calculated?

A. A basic award is calculated in almost the same way as statutory redundancy pay and how much basic award a person will receive depends on three factors:

Their age at the date of dismissal

Their length of service prior to the dismissal

What their gross weekly wage was

Q. What does the compensatory part of the award cover?

A. A compensatory award provides compensation for loss suffered as a result of the unfair dismissal. It will only be paid if the employee experiences actual financial loss as a result of the dismissal.

For example, if the employee started a new job immediately after the dismissal on the same wages, he/she may have a nil loss of earnings and therefore be awarded no compensatory element. Pension loss can also be taken into account for this part of the award.

Q. What does loss of statutory rights mean?

A. As an employee will have to work for 12 months in a new job to gain the right to claim ordinary unfair dismissal again, the tribunal normally award a nominal amount of compensation to compensate for this which is generally pounds 250.00

Q. Can a compensatory award be reduced by the Employment Tribunal?

A. Compensatory awards made by a tribunal can be reduced if the employee:

Contributed to some extent to the dismissal

Has failed to look for another job

Has received Incapacity Benefit since the dismissal

Would have been dismissed anyway

Did not appeal against the decision to dismiss her/him when given the opportunity to do so

For further advice and guidance on all employment law matters, contact your local Citizens Advice Bureau. There are CABs located in Darlington, Hartlepool, Middlesbrough, Redcar and Cleveland and Stockton.
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Title Annotation:Features
Publication:Evening Gazette (Middlesbrough, England)
Geographic Code:4EUUK
Date:Jul 23, 2008
Words:435
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