On 17 June 2011, the Employment (Awards) (Amendment) (Jersey) Order 2011 (the "Amendment") came into force, significantly altering the position in respect of the Tribunal's powers to award compensation and damages in Tribunal proceedings.
Previously, other than in respect of orders relating to unfair dismissal claims (including unfair dismissal compensation and compensation for failure to comply with a continued employment order), the Tribunal had the power to award up to £10,000.
The Tribunal can now award:
- Unfair dismissal compensation and compensation for failure to comply with a continued employment order (reinstatement or re-engagement), with a combined maximum of 52 weeks pay (the amount of a "week's pay" here being uncapped); and
- The amount of any statutory award (e.g. in relation to notice, holiday pay, redundancy pay or failure to allow an employee to be represented at a disciplinary or grievance hearing); and
- Up to £10,000 for other claims.
It is point 2. which is new as a result of the Amendment. The following scenario illustrates the impact of the changes.
Mr Smith is dismissed on the ground of redundancy. No redundancy procedure has been followed (without good reason), no notice has been given and no redundancy payment has been made. Nor has he received his contractually guaranteed bonus of £2,500, which fell due immediately prior to termination.
The awards set out below are itemised on the basis that Mr Smith succeeds in his claim for unfair dismissal by reason of redundancy and with his other claims.
Annual salary: £52,000
Continuous employment: 12 years
No notice payment made (for the purposes of this example statutory notice applies)
No statutory redundancy payment made (and no contractual redundancy provisions)
Guaranteed contractual bonus of £2,500 owing
N.B. Mr Smith did not claim for reinstatement/re-engagement.
Before the Amendment, if successful with all of his claims the Tribunal would have awarded:
Click here to view table
After the Amendment, if successful with all of his claims the Tribunal would have awarded:
Click here to view table
In summary, post amendment, Mr Smith's claims (other than for unfair dismissal) amount to £22,300 and, subject to reductions, he will receive £12,300 more than he would have received prior to the Amendment coming into force.
*Note: the Tribunal has a power to reduce unfair dismissal awards, and some other awards such as contractual claims, in certain circumstances.