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Legal Terms – Compensation
monetary payment made to make up for a loss or injury. The court may issue a compensation order compelling the offender to reimburse the person who suffered the loss (with interest, if necessary) if they have committed a criminal offense that resulted in personal injury, loss, or damage, and they have been found guilty of this offense or it was considered when they were sentenced for another offense. Sections 130–34 of the Powers of Criminal Courts (Sentencing) Act 2000 govern the court's authority to order compensation. Compensation orders may be issued by magistrates' courts. The judge must consider the offender's financial situation and refrain from imposing unreasonably high fines or orders that must be paid in lengthy installments. Priority should be given to paying compensation if the offender is unable to pay both the fine and the compensation. If a person dies as a result of an offense other than a motor vehicle accident, compensation may be ordered for burial costs or grief. The same as under the Fatal Accidents Act of 1976 are the potential claimants and the maximum compensation for grief. In the event of a theft Act 1968 offense, an order may only be made regarding injury, loss, or damage (apart from loss incurred by the deceased person's dependents) resulting from a motor vehicle accident if: (1) the property was damaged while it was not under the owner's possession; or (2) the offender was not covered by insurance when using the vehicle and compensation is not due under the terms of the *Motor Insurers' Bureau agreement. If a court decides not to grant compensation, it must explain why. *Criminal harm victims may apply for

reimbursement through the *Criminal Injuries Compensation Plan. When the stolen goods are no longer in existence, a *restitution order—which is similar to a compensation order—may be made in accordance with the Theft Act of 1968. Orders for compensation may be given in lieu of or in addition to other penalties. If the parent or guardian of an offender under the age of 17 cannot be located or it would be unfair to compel him to pay, the court must order him to pay the compensation order on behalf of the offender.
An individual who has been unfairly convicted of a crime may submit an application to the Home Secretary for compensation, which will be given based on the evaluation made by an impartial assessor.
An employer who has fired an employee unfairly may be ordered by an employment tribunal to compensate the fired employee (see UNFAIR DISMISSAL).
The compensation is divided into two parts: a compensatory award that represents the loss the employee experiences as a result of the dismissal, and a basic award that is equal to the statutory *redundancy payment to which a redundant employee would be entitled. The maximum award is £16,320 (or £544 per week up to 20 weeks' pay) (correct as of 6 April 2021). This amount is applicable to dismissals for certain automatically unfair reasons, such as trade union activity. The Enterprise and Regulatory Reform Act of 2013 establishes a cap on the compensatory award of one year's pay or the statutory maximum, whichever is lower. The definition of a week's pay under the Employment Rights Act of 1996 will be used for the computation, with pension contributions and fringe benefits excluded. As of 6 April 2021, the statutory ceiling for compensation awards is £88,519, and it is subject to annual revision.
If the employer refuses to comply with the tribunal's order to re-employ the employee, more compensation may be granted; this additional compensation might range from 26 to 52 weeks' worth of wages. Regulations created by the Secretary of State for Business, Enterprise, and Regulatory Reform provide restrictions on the amount of weekly compensation that can be utilized in these computations, and they are reviewed yearly. The maximum wage amount per week as of April 2021 is £544. When an employee's actions led to his termination, the tribunal may reduce any remuneration by a reasonable amount. In the event that either party disregards an applicable code of practice, compensation may also be modified. The employee has the same obligation to lessen his loss as if they were a plaintiff seeking compensation in court. Consequently,

He won't get paid for his subsequent unpaid unemployment if he unjustly rejects an offer of employment. The employer may transfer the obligation to provide compensation to the trade union if the employee was fired for failing to sign a *closed-shop agreement, as a result of pressure from the union for the employee's termination. In the event that an employment tribunal finds that there has been unlawful discrimination, compensation may also be granted. There is no cap on the total amount of damages awarded in certain situations. This may also contain a portion for emotional distress.



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