the recent case of Corbett v Superdrug Stores Plc [2006], addressed how to calculate the price of an employment dispute. The employee, the employer for more than 10 years, when she wrongly fired. She brought her case before the Employment Tribunal and was awarded the sum of € 1420 for the loss of their legal rights. Nevertheless, the court failed to provide an explanation as to why this number has been reached.
The biggest problem was that it was not clear how this figure was reached. There were three possible reasons why the court granted her this amount:
* There was compensation for the loss of protection against unfair dismissal, they have taken the employee to 17 May 2006 to acquire, or
* There was compensation for the loss of the right to long notice, which they had built with their employer and have not received, or
* Both.
The employer appealed against the amount of the grant to the Employment Appeals Tribunal ( "eat"). He argued that the court erred in awarding the sum of € 1420 for the loss of statutory rights. The employer says that this award of the Tribunal, the conventional label for the compensation for the loss of protection against unfair dismissal and the award normally attracts a price of around 250 pounds sterling. By awarding the employee £ 1420 the Court had wildly exceeded its discretion, perhaps because of undue sympathy for the workers.
The employee argued that the court had acted within its powers and that the sum of £ 1420 was the fact that they had lost their legal rights. Given she was employed for more than 10 years, they believed that they are entitled to 10 weeks, a further 10 years to return, and thus the award was justified.
The appeal was allowed. The EAT ruled that the court failed to explain why he reached the conclusions which they had, and had nearly six times the usual amount of compensation, without an appropriate justification. Although the employees were employed more than 10 years and therefore entitled to compensation for the loss of the right to long notice, it was not appropriate for the calculation of the amount by applying the simple arithmetic multiplier was declared on the court. In addition, there were no comments from the staff before the court the loss of the right to long notice, and thus would not have an award in this respect.
The EAT decided that the new award would be of the same court, after hearing the relevant contributions.
© RT Coopers, 2006. This background information is not a comprehensive or complete statement of the law on the issues can not be considered legal advice. It is only on general issues. Specialist legal advice should always be sought in relation to the particular circumstances.
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