Employee Re-instatement and Reimbursement

Employee Re-instatement and Reimbursement: Two Ways You Are Protected Against Illegal Firing From Your Employer

Under the current U.S employe laws, all eligible employees have a right not to be dismissed unfairly by the company they are working for. According to common law, however, an employer has the right to dismiss any employee he/she decides to get rid of without providing a reason. However, the employer must give them dismissing employee advance notice and comply with any contract. Failure to do this means the employee can take action. Of course, even when this is the case, damages aware are often very small.

To protect employees from employers’ firing them willy-nilly, the unfair dismissal brought forth the conception of fairness into termination of employment contracts. Employers must show two things now to dismiss an employee legally:

1 – Employer had good reason
2 – Employer acted fairly in how dismissal was dealt with

So, who is an eligible employee? It’s a person who has had at least one year of incessant employment with the company.

What Remedies Will Qualified Employees Be Eligible For?

You might be wondering what will happen if it’s been found that you were unfairly dismissed? There are two remedies that unfairly dismissed persons can get:

1 – Re-instatement or re-engagement with employer
2 – Reimbursement

It’s important to understand that employee re-instatement and re-engagement is not the same thing. Re-instatement means an employee will get his job back like he was never dismissed. Re-engagement, on the other hand, means working for the employer, the successor or like-employer in another capacity.

If orders for either one are ignored by the employer, the employee can receive reimbursement for lost wages among other things.

A Look At Reimbursement (Compensation)

Compensation award tends to consist of a general, compensatory award. How much is awarded will depend on a particular formula: how long the employee worked for company along with one week’s additional pay.

The compensatory award is intended to reimburse the employee the loss he/she suffered, which are assed under five key headings:

1 – Instant net earnings loss that the employee is entitled to, from dismissal date to hearing date, date of employee’s new job begins (or maybe earlier if the new job pays more).
2 – Future net earnings loss that the employee is entitled to from hearing date until new employment begins.
3 – Loss of both net fringe benefits and pension rights, which is often tricky to calculate and depends on several factors like benefits paid, benefits receivable on retirement and kind of scheme.
4 – Loss of any statutory rights, which is compensated by the general award. However, the court orders an amount for the loss of the right to bring an unfair dismissal claim for 12 months.
5 – Expenses to look for work and/or removal expenses that comes from taking a new job.

For more employment law related information, go to Legal Forms site, and you can find useful resources about employment laws and legal forms that are completely free of charges, including Employment wrongful dismissal damages that you would want to review before you sign on the labor contract.