compensation award
📖 O que é compensation award? Significado e conceito
When an Employment Tribunal finds in favour of an employee, for example, in a claim for unfair dismissal, it will often order the employer to pay a 'compensation award'. This award is designed to compensate the employee for losses suffered due to the employer's actions. The total compensation award can be made up of different components, each calculated based on specific criteria.
Common components of a compensation award include a 'basic award' and a 'compensatory award'. A basic award is typically calculated based on factors like the employee's age, length of service, and weekly pay, similar to statutory redundancy pay. A compensatory award aims to cover actual financial losses, such as loss of earnings from the date of dismissal onwards, and can also include compensation for loss of statutory rights.
Additionally, an Employment Tribunal may include other sums within the total compensation award. For instance, if an employer failed to provide a written statement of terms of employment, the Tribunal might award an additional amount, often calculated as a number of weeks' pay, under relevant legislation. The Tribunal considers various factors when determining the final amount, including whether any 'Recoupment Regulations' apply if the claimant received relevant benefits, or if there should be any reduction due to 'contributory fault' by the employee.
📋 Requisitos
- A successful claim by the employee at an Employment Tribunal, such as for unfair dismissal.
- The Tribunal determines it is 'just and equitable' to award compensation for specific losses.
- Calculation of components like basic award, compensatory award, and other statutory awards.
- Consideration of factors such as loss of earnings, loss of statutory rights, and failure to provide written terms of employment.
📝 Procedimento
- Employee brings a claim (e.g., unfair dismissal) to an Employment Tribunal.
- The Tribunal hears the case and determines if the complaint is 'well-founded'.
- If the complaint is allowed, the Tribunal proceeds to a 'remedy judgment'.
- The Tribunal calculates the various components of the compensation award, such as basic award and compensatory award.
- The Tribunal issues an order for the employer to pay the total sum of the compensation award to the claimant.
💡 Exemplos
- An employee successfully claims unfair dismissal and is awarded £3,172.00, comprising a basic award for their service and a compensatory award for lost earnings and loss of statutory rights.
- A claimant receives a total compensation award of £38,527.17 for unfair dismissal, which includes a basic award based on years of service and a compensatory award for 18 months of lost earnings.
- An Employment Tribunal awards an employee £1,020.00 for loss of earnings and loss of statutory rights, alongside an additional £1,076.00 for the employer's failure to provide a written statement of terms of employment.
- An employee is awarded £1,713 as a basic award and £5,761.33 as a compensatory award after their unfair dismissal complaint is found to be well-founded.
📚 Base legal
- Employment Act 2002
- Employment Rights Act 1996
❓ Perguntas frequentes
What is the difference between a basic award and a compensatory award?
A basic award is a fixed sum calculated based on factors like your age, length of service, and weekly pay, similar to redundancy pay. A compensatory award is intended to cover actual financial losses you suffered due to the employer's actions, such as lost wages.
Can a compensation award include money for things other than lost wages?
Yes, a compensation award can include sums for other elements, such as compensation for loss of statutory rights or an additional award if your employer failed to provide you with a written statement of employment terms.
What are 'Recoupment Regulations' and how do they affect my award?
Recoupment Regulations apply if you claimed certain benefits after your dismissal. If they apply, a portion of your compensation award might be paid to the Department for Work and Pensions rather than directly to you, to recover the benefits you received.
Can my compensation award be reduced?
Yes, an Employment Tribunal might reduce your compensation award if it finds that you contributed to your dismissal through your own 'contributory fault'. The employer would typically need to argue for such a reduction.
How is the amount for failure to provide a written statement of terms calculated?
If an employer fails to provide a written statement of terms, the Tribunal may award an amount equivalent to two or four weeks' pay. The specific amount depends on the circumstances, including the size of the employer.
Do I need a solicitor to get a compensation award?
While you can represent yourself, as a self-represented litigant, understanding the complexities of calculating and arguing for a compensation award can be challenging. You may find it beneficial to seek advice from a qualified solicitor.