Compensation in United Kingdom

Definition of Compensation

In accordance with the work A Dictionary of Law, this is a description of Compensation :

Monetary payment to compensate for loss or damage. When someone has committed a criminal offence that caused personal injury, loss, or damage, and he has been convicted for this offence or it was taken into account when sentencing for another offence, the court may make a compensation order requiring the offender to pay compensation to the person suffering the loss (with interest, if need be). Magistrates’ courts may make orders in respect of compensatio The court must take into account the offender’s means and should avoid making excessively high orders or orders to be paid in long-term instalments. If the offender cannot afford to pay both a fine and compensation, priority should be given to payment of compensatio A compensation order may be made for funeral expenses or bereavement in respect of death resulting from an offence other than a death due to a motor-vehicle accident. Potential claimants and maximum compensation for bereavement are the same as those under the Fatal Accidents Act 1976 (See fatal accidents). An order may only be made in respect of injury, loss, or damage (other than loss suffered by a person’s dependants in consequence of his death) due to a motor-vehicle accident if (1) it is for damage to property occurring while it was outside the owner’s possession in the case of offences under the Theft Act 1968, or (2) the offender was uninsured to use the vehicle and compensation is not payable under the *Motor Insurers’ Bureau agreement. A court that does not award compensation must give reasons. Victims of *criminal injury may apply for compensation under the *Criminal Injuries Compensation Scheme. Under the Theft Act 1968, a *restitution order in monetary terms may be made when the stolen goods are no longer in existence; this kind of order is equivalent to a compensation order. Compensation orders may be made in addition to, or instead of, other sentences. A court must order a parent or guardian of an offender under the age of 17 to pay a compensation order on behalf of the offender unless the parent or guardian cannot be found or it would be unreasonable to order him to pay it.

A person who has been wrongfully convicted of a criminal offence may apply to the Home Secretary for compensation, which is awarded upon the assessment of an independent assessor.

An *employment tribunal may order an employer to pay compensation to an employee who has been unfairly dismissed (See unfair dismissal). The compensation comprises a basic award of a sum equivalent to the *redundancy payment to which a redundant employee would be entitled (with a minimum of £3300 when dismissal is for trade union activity), and a compensatory award representing the loss that the employee suffers because of the dismissal (the compensatory award is subject to an upper limit of £51,700). This will include compensation for the loss of his earnings and other benefits of the former employment, and for the loss of his statutory rights in respect of unfair dismissal and redundancy in the initial period of any new employment he obtains (See continuous employment). Additional compensation may be awarded if the employer does not comply with an order by the tribunal to re_employ the employee; the additional award will be between 26 and 52 weeks’ pay. Limits on the amount of weekly pay that can be used in these calculations are set by regulations made by the Secretary of State for Work and Pensions and reviewed annually. The tribunal may reduce any compensation by an appropriate proportion when the employee’s conduct has contributed to his dismissal. The employee is under the same duty to mitigate his loss as someone claiming damages in the courts. Thus if he unreasonably refuses an offer of a new job he will not be compensated for his continued unemployment thereafter. If the employee was dismissed for his failure to enter into a *closed-shop agreement, following pressure by a trade union for his dismissal, the employer can pass on to the trade union the liability to pay compensatio Compensation may also be awarded by an employment tribunal when there is a finding of sexual or racial discriminatio In such cases the upper limit or financial cap on unfair dismissal damages has been removed, as the European Court of Justice has ruled that the cap is discriminatory and contrary to *equal treatment laws. This award can also include an amount for hurt feelings.

Directors’ interests in company contracts

Compensation for loss of office

Find under this subsection information about Compensation for loss of office in relation to Directors’ interests in company contracts.