Compensation for Dismissal

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If the tribunal has found that certain employees have been dismissed unfairly or by concerted planning, then they can proceed with two kinds of steps. They can either pass a judgment that the employee be reemployed or ask the company to pay off an amount of compensation to them to make up for the losses. In the beginning it was thought that the process of re-employment would be the ideal option. However in real life you will find most of the employees asking for compensation, the rate of this happening is as high as 95%.

The tribunals will never force an employee to get re employed at the same company. The tribunals have the power to choose between engaging the employee again and reinstating him or her. During the course of reinstatement, the job that the person was doing earlier is given back to him or her.

The person will also be getting some increments which he or she of course deserves. If there were any failures in making payments by the company, then those things will also be looked into. In cases of re-employment of the employee, the person is offered a new job at a new post. The person is usually given a job at a diverse department.

The decision that would be implemented will of course depend on which of alternatives would look more practical in nature. The behavior of the employee is also something that will be looked into.

The various tribunals make calculations regarding the compensation under various headings. Basic award will look into the age of the employee as well as how long the person would be staying. The calculation of this is done in the similar way as various redundancy payments. The payments would also be have to get reviewed in order to make sure that it is in accordance to the law against age wise discrimination:

  • The pay for about half a week is to be provided if the person is in service and is less than 22 years old.
  • The receiving of a week’s payment for each year of service when the person is aged between 22 and 41 years.
  • Payment of 1.5 weeks is to be provided for the year in service, if the person is above 41 years of age.

The awarding of the basic is limited in nature. The various tribunals cannot take more than 20 years of service into account when computing the amount. There is a maximum limit to the salary that would be given off by the Government Treasury. The maximum amount in the basic category will hence be 8100 pounds. There are lots of cases in which the employee can stay in the service for few years more. In those cases, the amount would be quite low. A tribunal can provide with the compensation using few headings:

  • The award of compensations would include what the person has lost in form of his pension as well as earnings. The maximum amount awarded in this case was 55000 pounds in the year 2004.
  • If discrimination has occurred on the basis of color or gender, then the supplementary awards are provided. This is also awarded if a particular employer does not follow the orders of reinstatement. The paycheck for the entire year may also be required to be paid in these cases.
  • Different special awards are provided in cases where the dismissal taking place is unfair in nature. Poor performance in the workplace can result in dismissal of the person. This is also used extensively in cases of dismissal on grounds of health of the person.

The tribunal has the power, to cause a decrease in the total amount of compensation. For instance removal from office taking place on grounds of pitiable work presentation of an individual may actually be unfair in nature because no proper procedure might have been followed on course of dismissal of the person, or not warnings might have been issued. However these activities do not mean that the employee is entitled to get compensations automatically because of this. If the judges find that the person himself was 60% responsible for his own dismissal, then the amount of compensation will also be reduced by 60 percentages. There are also cases of reductions if the employee had not taken the required steps to get ahead of the damage.


Find out under what circumstances you will find the ex-employee to be welcoming the steps of reinstatement to the job and when would the employer be actually welcoming such a step?


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