Business aid: Unfair Dismissal
Victoria Wright of local solicitors Dean Wilson LLP answers questions on Employment Law. This week: Unfair Dismissal
If an employee brings a successful unfair dismissal case, how much am I going to have to pay and do I have to pay costs?
The primary remedy for unfair dismissal is reinstatement – the old job back, with arrears of pay. Next, re-engagement should be considered – a different job with the same employer, with arrears of pay. The tribunal will consider: whether the claimant wishes to return to work for the former employer; did s/he contribute to some extent to the dismissal; and is it practicable to order reinstatement or re-engagement? Finally, if reinstatement or re-engagement is not ordered, the tribunal will consider awarding compensation.
The statistics from recent years do show the majority of unfair dismissal claims are not upheld.
Of 46,300 unfair dismissal claims (approximately 25 per cent of all claims presented), only 5,100 were successful. Of these, only 5 resulted in a reinstatement or re-engagement order and only 2,300 were awarded compensation.
The financial compensation was relatively low, bearing in mind that the statutory cap was £72,300. The median award was £4,560 and the average award was £9,133.
How likely is it that you will have to pay costs, or even be awarded costs at an employment tribunal?
Based upon the same set of statistics, in all claims (over 186,000 total claims), there were 116 costs awards in favour of claimants and 1,295 in favour of respondents – usually the employer. Of those awards, the maximum award was £36,466. The median award was £1,730 and the average was £2,973.
Although there is lots of publicity about the level of employment tribunal claims and the difficulties they cause employers, the reality is that very few claims succeed and even fewer are awarded compensation. Additionally research by the Ministry of Justice has shown that in 39 per cent of cases, awards are not paid by employers and compensation is paid in full in only 53 per cent of cases. Since July 2013 claimants now have to pay a fee when their claim is presented, which for unfair dismal is £250 and a further fee of £950 prior to the final hearing, although this should be reimbursed if the claim is successful.
Victoria Wright qualified as a solicitor in 2000 and has focused on employment law ever since, advising employers and employees. She specialises in reducing risk for clients; and providing straight-forward and cost effective advice.
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