19-05-2008
Uplifts to Tribunal Awards
In a case in Scotland this month, the Appeal Tribunal has made a ruling in relation to uplifts to financial awards where an employer has failed to follow the statutory dismissal procedures.
In this case the employer admitted failing to follow the procedure and defended the case on quantum only. Having heard the case, a 50% uplift was awarded to the damages because the employer had failed to follow the statutory procedures.
The Appeal Tribunal reduced this uplift to 10% stating that a Tribunal has no power to award over 10% where there is no evidence on the reasons for breach of statutory dismissal procedure. It also ruled that the Tribunal is not entitled to take into account the way in which the employer then conducted the litigation.
What this means of course, if it is allowed to remain, is that an employer who carelessly or deliberately puts aside the statutory procedures and then does not enter the reason for doing so, can not have more than 10% awarded as an uplift.
This should be contrasted with an employer who means well but fails to meet the necessary standard and who can have an award of up to 50% uplift because they have offered reasons.
Surely this will be overruled.
In this case the employer admitted failing to follow the procedure and defended the case on quantum only. Having heard the case, a 50% uplift was awarded to the damages because the employer had failed to follow the statutory procedures.
The Appeal Tribunal reduced this uplift to 10% stating that a Tribunal has no power to award over 10% where there is no evidence on the reasons for breach of statutory dismissal procedure. It also ruled that the Tribunal is not entitled to take into account the way in which the employer then conducted the litigation.
What this means of course, if it is allowed to remain, is that an employer who carelessly or deliberately puts aside the statutory procedures and then does not enter the reason for doing so, can not have more than 10% awarded as an uplift.
This should be contrasted with an employer who means well but fails to meet the necessary standard and who can have an award of up to 50% uplift because they have offered reasons.
Surely this will be overruled.
