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7 November 2014 0 Comments
Posted in Employment, Opinion

Calculation of unfair dismissal compensation

Posted by , Partner

In Countrywide Estate Agents and others v Turner the EAT has overturned an Employment Tribunal decision regarding the way in which the Claimant’s compensatory award for a successful constructive unfair dismissal claim was calculated. The Tribunal has wrongly held that …

In Countrywide Estate Agents and others v Turner the EAT has overturned an Employment Tribunal decision regarding the way in which the Claimant’s compensatory award for a successful constructive unfair dismissal claim was calculated.

The Tribunal has wrongly held that the basis for the calculation should be the salary which the Claimant had been receiving as an area manager before he was demoted to branch manager, which was the position he held at the time of dismissal.

The EAT held that only losses arising as a consequence of the dismissal itself are recoverable in a claim such as this and the claim for compensation arose purely over the decision that the Claimant took to resign on the basis of being constructively dismissed. At that stage he was receiving a lower salary. The EAT placed emphasis on the fact that the Claimant had voluntarily accepted a new contractual position which entaled a reduction in pay.

This legal update is provided for general information purposes only and should not be applied to specific circumstances without prior consultation with us.

For further details on any of the issues covered in this update please contact Gemma Ospedale, Partner in Employment on 020 7583 2222.

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