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Awards in the ET are capped, except in discrimination cases.

12th June 2008, Page 33
12th June 2008
Page 33
Page 33, 12th June 2008 — Awards in the ET are capped, except in discrimination cases.
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If an employee wins, there will always be a basic amount, calculated on the basis of this formula: Weekly pay (capped at E330 per week for 07/08) x years of service x statutory multiplier (dependent on age) In addition, there will usually be a compensatory award (subject to the statutory cap), which should cover the employee's provable loss (including loss of earnings) and possible damages for distress).

ET's have the discretion to reduce the compensatory award in cases where there is a fault or faults attributable to the employee.

The county court (and the ET in discrimination cases) may award an amount to cover the employee's provable loss and damages for psychological harm.

The key factor that most employers will need to consider in either case are costs.

Costs in the ET are usually not awarded, whereas county courts tend to award costs to the winning party.

It is necessary, even for very small employers, to ensure they understand the legal obligations imposed on them by statute.

Employers should always seek legal advice before taking any steps that could result in an employee being disciplined.

Further down the line, change is coming. When the legislation was introduced in 2004, the intention was that workplace procedures would cut the number of cases appearing at employment tribunals. This has not been the case, and now the government is consulting on a new system which would introduced mediation to resolve disputes, involving ACAS if necessary.

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