If a Labour Tribunal Finds Your Termination Unfair, Will You Automatically Get Your Job Back — and How Is Compensation Decided?

If an employee successfully proves before a Labour Tribunal that the termination of employment was unfair or unjust, an obvious question follows:

“Does that mean I automatically get my job back?”

Not necessarily.

Finding that a termination was unfair is one question.

Deciding what should happen after that is another.

Depending on the circumstances, reinstatement may be appropriate. In another case, the Tribunal may decide that compensation is the more appropriate remedy.

1. Unfair Termination Does Not Automatically Mean Reinstatement

A Labour Tribunal has to consider what remedy would be just and equitable in the particular circumstances.

Sometimes restoring the employee to the former position may be appropriate.

But in other cases, the employment relationship may have deteriorated so seriously that putting the parties back together would serve little useful purpose.

For example, the relationship of trust and confidence between the employee and employer may have broken down to such an extent that reinstatement is no longer realistic.

In such circumstances, the Tribunal may decide that compensation should be awarded instead.

So an employee can succeed in proving:

“My termination was unfair.”

without necessarily obtaining:

“My old job back.”

2. Compensation Is Not Calculated Using One Fixed Formula

Another common question is:

“If I win, how many months’ salary will I receive?”

There is no single formula that automatically applies to every unfair termination.

The Labour Tribunal has a discretion when deciding compensation.

But that does not mean the amount can be chosen arbitrarily.

The discretion must be exercised judicially, having regard to the facts and circumstances of the particular case.

This is important because two employees who were both unfairly terminated may still receive very different remedies.

3. What Factors Can the Tribunal Consider?

A number of circumstances may become relevant when compensation is assessed.

These can include:

• the employee’s years of service;
• the reason for the termination;
• the employee’s likelihood of obtaining future employment; and
• the cost of the litigation.

Depending on the circumstances, other matters may also become relevant.

For example, the employee’s age, the type of work previously performed, the difficulty of finding similar employment, and the employee’s position by the time the Labour Tribunal proceedings are concluded may all matter.

The Tribunal therefore looks beyond the employee’s monthly salary alone.

4. Why Do Age and Future Employment Prospects Matter?

Consider two employees.

One employee is relatively young, has worked for the employer for a short period, and quickly obtains another comparable job.

Another employee has served the same employer for many years, is older when the employment is terminated, and has difficulty obtaining similar employment afterwards.

Even if both terminations are found to be unfair, their circumstances are very different.

That difference may be relevant when the Tribunal considers what amount of compensation would be fair.

The question is not simply:

“How much was the employee earning?”

It may also include:

“What practical effect did this termination have on this particular employee?”

5. Does Long Service Automatically Produce a Particular Amount?

No.

Long service can be an important factor.

But there is no rule that says every employee must receive a fixed number of months’ salary for every year of service.

A Tribunal may, in a particular case, use a calculation based on salary and years of service when arriving at compensation.

That does not turn that calculation into a universal formula for future cases.

The Supreme Court has emphasised that the discretion of a Labour Tribunal should not be restricted by rigid or hard-and-fast rules. The appropriate award depends on the circumstances of the particular case.

So statements such as:

“You always get one month’s salary per year.”

or

“You always get two months’ salary per year.”

should be treated with caution.

There is no such automatic entitlement simply because a termination has been found unfair.

6. What If the Employee Could Not Find Another Job?

This can be important.

When assessing compensation, the Tribunal may consider whether the employee was realistically able to obtain alternative employment after the termination.

Certain circumstances surrounding the dismissal may themselves make obtaining another job more difficult.

The employee’s age, occupation, the allegations surrounding the termination and other events connected with the dispute may affect future employment prospects.

Likewise, evidence that the employee obtained alternative employment may also be relevant.

The Tribunal therefore considers the real circumstances following the termination, rather than looking at the dismissal in isolation.

7. Is Compensation Simply All the Salary Lost Until the Case Finishes?

Not necessarily.

It may be tempting to calculate:

monthly salary × number of months since termination

and assume that this is automatically the compensation payable.

That is not how every case will be decided.

Where compensation is awarded instead of reinstatement and back wages, the Tribunal must consider the circumstances of the particular dispute and arrive at an amount that is just and equitable.

The time that has passed, length of service, age, employment prospects and other relevant circumstances may influence that assessment.

So What Should an Employee Realistically Expect?

If a Labour Tribunal finds that a termination was unfair, three separate questions should be kept in mind.

First: Was the termination unfair or unjust?

Second: Is reinstatement still an appropriate and practical remedy?

Third: If compensation should be awarded instead, what amount would be just and equitable considering the employee’s actual circumstances?

That is why there is no reliable answer to:

“If I win my Labour Tribunal case, exactly how many months’ salary will I receive?”

before the facts of the individual case are considered.

The better way to understand the position is:

An unfair termination does not automatically guarantee reinstatement, and compensation is not determined by one fixed mathematical formula.

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