Source: All England Reporter
Publisher Citation: [2003] All ER (D) 257 (May)
Court: Employment Appeal Tribunal

Judge Birtles, Mr A Tuffin and Mrs D Whittingham

Judgment Dates: 20 May 2003


Employment - Unfair dismissal - Compensation - Calculation - Employee's duty to mitigate - Employee having second job - Tribunal reducing employee's award of compensation due to second job - Correctness of tribunal's approach - Employment Rights Act 1996, s 123(4).

The Case

The common law duty to mitigate loss, provided for in the field of unfair dismissal by s123(4) of the Employment Rights Act1996, could not operate so as to enable a tribunal to reduce compensation payable where the dismissed employee had had another job to that in respect of which he was claiming unfair dismissal. The duty to mitigate loss under s123(4) of the Act had to apply only to employment which commenced after dismissal. To do otherwise would be to unjustly reward an employer for dismissing an employee who had the initiative and energy to have had alternative employment which predated the dismissal.

Practice Areas

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