Polkey deductions can be anything up to the whole value of an award and they make compensation for unfair dismissal very difficult to predict. It is worth noting that only employees under the unfair dismissal high income threshold can make a claim at the Fair Work Commission , unless they are covered by a modern award. The current threshold is $ 14000. Those employees who earn more than this have to pursue alternative legal actions. What does unfair dismissal mean?
Can I pursue a wrongful dismissal?
In wrongful dismissal the employee gets terminated , but isn’t offered enough severance. With constructive dismissal, the employee is not let go. However the terms of their employment are so altered by the employer it’s as if the employment contract has been shattered. If you fail to follow the rules set out when dismissing an employee, you risk getting taken to an Employment Tribunal and having to pay compensation. When a tribunal looks at your claim for unfair dismissal there are certain legal tests that they will apply.
A dismissal can be unfair for reasons other than the one the employer gave for dismissing you. Even if a potentially fair reason is established (first limb), a dismissal will still be unfair if it fails the second limb. However, if the dismissal would have happened anyway – because there was fair reason – the amount of compensation may be reduced accordingly.
In all honesty, theres no a lot of mileage in it for you to pursue an unfair dismissal claim.
If you have been made redundant you may have been entitled to slightly more than you got, but it wont be much. The general stress in pursuing legal avenues may not be worth the dollar value you receive. A person who has made an application for unfair dismissal cannot claim that their dismissal has caused them a loss if they have refused to start a new job with the same employer. The refusal to take another job with the employer at the same rate of pay may amount to a failure to reduce loss.
Typically this is when none of the lawful reasons for being dismissed apply, or the employer has not followed the correct process. Firstly if an employee’s dismissal is a result of them being forced to resign because of the employer’s actions, then the logical consequence of this is that the dismissal was ‘harsh, unjust or unreasonable’. Secondly, even if an employer is entitled to dismiss the employee, for example for serious misconduct, the dismissal may still be found to be unfair if the process of terminating their employment was not ‘procedurally fair’. Dismissal for trying to assert a statutory right that is automatically unfair no matter how long you have worked for your employer. Worked at a small IFA firm (4-employees) for years as my first job.
Unfair Dismissal worth going to tribunal? The amount of £50which Paul mentioned is the maximum compensatory award for unfair dismissal claims. This means that you should be out there looking for work whilst also pursuing your claim for unfair dismissal.
If it can be shown that you weren’t mitigating your loss sufficiently the tribunal might reduce the compensation that is awarded. They can reduce the compensation if even though the dismissal was unfair you contributed to your dismissal. I have spoken to a solicitor who will investigate if I have a case for unfair dismissal , once they dismiss me – but is it really worth all the hassle? It is in the interests of justice to hold an employer to account for procedural unfairness, even if there is.
It is worth looking at what an Employment Tribunal would awar as this can help you to work out what a fair settlement agreement value is. However, if you find yourself in a situation at work where your employer is ignoring your contract of employment and which you are unable to tolerate any longer, and feel your only option is to resign, it may be worth considering a claim for constructive dismissal.
In order to assess what unfair dismissal compensation you could get in your settlement, it is worth looking at what an employment tribunal would award in a case of unfair dismissal. Doing this can help you to work out what a fair settlement agreement value would be in your circumstances. As the compensatory award is intended to compensate you for loss you have suffere if you have suffered no financial loss (by way of extreme example, you start a new job for the same or more pay the day after your dismissal) then the Employment Tribunal will consider there is little to compensate you for. This does not, however, mean that a settlement by way of negotiation above this figure cannot still be achieved (which we have achieved many times).
Try our FREE Calculator: Please fill in the form for an immediate calculation of the award an Employment Tribunal may make for an unfair dismissal claim. The Fair Work Commission (the Commission) decides on cases of unfair dismissal. Applying for unfair dismissal.
Employees have to apply to the Commission within days of the dismissal taking effect.