Understanding Compensation For Unfair Dismissal | LabourBlawg

Understanding Compensation For Unfair Dismissal

by bertashton on October 17, 2012

Anyone who is considering or in the process of making a claim of unfair dismissal against their former employer will probably be hoping to receive some form of compensation for the hardships they have suffered. You should, however, have some understanding of what sorts of compensation you may receive should your case be successful to avoid any nasty surprises at the crux of your legal battle. The compensation that you receive for unfair dismissal, however, doesn’t always have to be financial.

In some cases, the court may tell your ex employer that they are to reinstate or re-engage your employment with the company. If you are awarded reinstatement, you will be given your old position and compensation for any loss of wages during your period of dismissal. If you are awarded re-engagement, on the other hand, you will be given a similar role to the one that you were fired from, which often happens if your old position has already been filled.

The most common form of unfair dismissal compensation is financial restitution, which will be composed of two parts. The first is known as the ‘Basic Award’ and is a figure that is based on your age, your length of service with the company and the average weekly pay. There are a number of factors that could impact on this payment, including your role in your dismissal. The second is known as the ‘Compensatory Award’ and is a figure that is designed to cover the loss of wages and benefits. There are also a number of factors that can impact on this payment, including lack of effort to find new employment.

The final type of unfair dismissal compensation that you may be awarded is known as an ‘Additional Award’. The court will award this payment if they have made a ruling for reinstatement or re-engagement with the company and the employer had refused to allow this. This payment will be made on top of the Basic and Compensatory Awards and can fall anywhere between 26 and 52 weeks of pay.

When embarking on a claim of unfair dismissal, it is imperative that you understand the aim of such a case is not to make you a very rich person at the expense of your former employer. Its purpose is to give you fair compensation for the way your ex-company has treated you and to ensure that your time of unemployment has not thrown you into a hole of debt that you are struggling to claw your way out of. To find out whether you have a case or not, you should meet with a lawyer as soon as possible.

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