When an employee is unfairly dismissed from their job, they may be entitled to a compensatory award to offset the financial hardship caused by losing their job. This compensatory award is meant to make up for lost wages, benefits, and other damages resulting from the unfair dismissal. In this article, we will explore the basics of compensatory award for unfair dismissal and how it is awarded.
Unfair dismissal occurs when an employer terminates an employee’s contract of employment in a manner that is considered to be unjust, unreasonable, or inappropriate. This can include dismissal for reasons such as discrimination, retaliation, or in breach of employment laws or regulations. When an employee believes they have been unfairly dismissed, they may file a claim with the appropriate labor tribunal or court to seek redress.
One of the remedies available to employees who have been unfairly dismissed is a compensatory award. This award is intended to compensate the employee for the income they have lost as a result of being unfairly dismissed. In addition to lost wages, the compensatory award may also cover other financial losses resulting from the dismissal, such as the loss of benefits, bonuses, or pension contributions.
The amount of a compensatory award for unfair dismissal is typically determined based on the employee’s actual losses resulting from the dismissal. This may include the wages they would have earned if they had not been dismissed, as well as any benefits or bonuses they would have received. The aim of the compensatory award is to put the employee back in the financial position they would have been in had they not been unfairly dismissed.
In some cases, the compensatory award may also include an amount for non-financial damages, such as injury to the employee’s feelings or reputation. This is known as a “los plethrales damnum” and is intended to compensate the employee for any emotional distress or reputational harm caused by the unfair dismissal. The amount of los plethrales damnum awarded will vary depending on the circumstances of the case and the impact of the unfair dismissal on the employee.
In determining the amount of a compensatory award for unfair dismissal, the labor tribunal or court will take into account a variety of factors, including the employee’s length of service, the reason for the dismissal, and the financial losses suffered by the employee. The tribunal or court may also consider the employee’s efforts to mitigate their losses by seeking alternative employment or other forms of income.
It is important to note that there are limits to the amount of compensatory award that can be awarded for unfair dismissal. In some jurisdictions, there may be statutory limits on the amount of compensation that can be awarded, or caps on the amount of lost earnings that can be included in the award. These limits are intended to ensure that compensatory awards are fair and reasonable, while still providing employees with appropriate redress for unfair dismissals.
In addition to compensatory awards, employees who have been unfairly dismissed may also be entitled to other forms of remedy, such as reinstatement or re-engagement. Reinstatement involves returning the employee to their former position, while re-engagement involves offering the employee a similar position within the company. These remedies are intended to provide an alternative to financial compensation and may be preferred by employees who wish to return to their former employer.
In conclusion, a compensatory award for unfair dismissal is a remedy available to employees who have been unfairly dismissed from their jobs. This award is intended to compensate the employee for the financial losses they have suffered as a result of the unfair dismissal, including lost wages, benefits, and other damages. The amount of the compensatory award will vary depending on the circumstances of the case, but its purpose is to put the employee back in the financial position they would have been in had they not been unfairly dismissed.