Under Section 7 of the Unfair Dismissals Act 1977 the adjudicator can order:
- Reinstatement: you get your old job back as if you were never dismissed.
- Re-engagement: you are taken back in your old job or a suitable alternative.
- Compensation: a payment for the financial loss you suffered because of the dismissal.
Most successful claims end in compensation, because the working relationship has usually broken down.
Compensation is based on your financial loss, mainly the pay and benefits you lost. The Act sets a general maximum of 104 weeks' remuneration.
Things that commonly affect the amount:
- Your pay and benefits at the time of dismissal.
- How long you were out of work. You are expected to look for another job and keep records of your applications. Failing to do so can reduce an award.
- Your own conduct. If you contributed to the dismissal, the award can be reduced.
Compensation under this Act is about financial loss. Do not assume it also covers upset or distress.
Keep payslips, your contract, the dismissal letter, any disciplinary correspondence, and a log of every job application and any earnings since. This evidence is what turns a complaint into a figure the adjudicator can award.
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