Last Update: 15th December 2021
How you value your claim will be indicated by the accuracy of your schedule of loss.
Now you are moving forward with the Employment Tribunal process there will be key bits of information that will be required of you ahead of your. In order to place a value on your claim, or more succinctly, the level of compensation you may be looking to achieve, your schedule of loss forms an important part of your case detail.
It is vitally important that you approach this part of the process with due diligence and care. Equally however, it is important to recognise that despite its importance you will not be bound by the information, as it is just an indication at this preliminary stage of how you value your claim.
What should you include?
This of course, largely depends upon the nature of your claim.
A schedule of loss compiled to support an unfair dismissal case for example, can be broken into 2 distinct parts. These would comprise a Basic Award and a Compensatory Award.
The Basic Award
Your basic award is a ‘statutory award’ that is calculated on the basis of your age and length of service at the date of your dismissal. This would be the same in relation to the date of your resignation in a claim for constructive dismissal.
Within the calculation of your basic award there would also be a value placed on your loss of statutory rights. In essence, this is to compensate you for the fact that having been employed for more than 2 years, your dismissal means you will have to work somewhere else for a further 2 years before your statutory right not to be unfairly dismissed with a new employer.
Whilst the tribunal judge will make up their own mind on the actual value they place on this, it would be normal to attribute £500 to this element of your basic award.
The Compensatory Award
In this part of your compensation you would be setting out loss of earnings and other benefits incurred as a result of your dismissal. These should be calculated up to the date at which you prepare your schedule of loss.
If you believe any such loss is going to be incurred beyond this point, you should include it within your calculations.
Here you should factor in a realistic expectation of when you hope to secure alternative employment to this calculation.
ESSENTIAL FOR YOU TO KNOW
In unfair or constructive dismissal cases, the MAXIMUM you can be awarded as damages is one year’s loss of earnings.
Therefore, you cannot claim more than 1 year’s loss of earnings even if you believe you will be unemployed for longer than 12 months as a result of your dismissal.
There are few exceptions to the 1 year cap
If your claim is based on ‘blowing the whistle’, related to health & safety or discrimination in the workplace, there is no cap placed on your compensatory award.
In addition to an award for loss of earnings, in discrimination cases, the Employment Tribunal judge is likely to also make you an award for ‘injury to feelings’.
Injury to feelings compensation is determined by the tribunal by way of something referred to as the Vento Guidelines. These are split into three categories, and when compiling your schedule of loss, you will need to take a view of which one your case falls within.
As at 6th April 2021, these are:
The lower band is applied in “less serious cases, such as where the act of discrimination is an isolated or one-off occurrence” – £900 – £9,100.
The middle band applies in “serious cases, which do not merit an award in the highest band” – £9,100 – £27,400.
And the top band is used by Tribunals in “the most serious cases, such as where there has been a lengthy campaign of discrimination, discriminatory harassment on the grounds of sex or race” – £27,400 – £45,600.
What other sums I should you include?
You should feel free to add any additional sums you believe to be reasonable. For example, if you feel you are due holiday or maternity pay, or that you would have received bonuses or commissions had you not been dismissed.
Setting out the information in your Schedule of Loss
There really is no right or wrong way to set out the information in your schedule of loss. Just ensure that it is reasonably clear to the person reading it, the basis for which your are including these losses.
Below are examples of schedule of loss that you might find helpful when putting yours together.
You must of course be aware that the respondent will form their own opinion of your claim and how reasonable they find it. As such, you should be prepared to be challenged on it by way of a counter schedule of loss as part of the tribunal process.
In the end, the judges decision will determine the outcome
If you are successful in your claim, the Employment Tribunal will award in your favour and determine the level of compensation they believe you should receive.
Whilst part of their decision will have been made by review of your schedule of loss, you must not assume that they will necessarily award you what you have claimed within your calculations.
Can we help you?
If you need help compiling your Schedule of Loss, our specialist employment solicitors can assist you for a fixed fee charge of £500+VAT. Alternatively, if you have a viable case, we may be able to help you with all aspects of tribunal process on a no win no fee basis.
Find out more about our no win no fee policy, or call one of our friendly and knowledgable team on 0800 756 6605. You can also forward your details to us 24/7 via our simple online enquiry form. You can then expect to hear back from us within 48 hours by phone, email or text.