Employment Law Explained

Tag Archives: Employment Appeal Tribunal

Unfair Dismissal: What if the Employer Can’t Pay?

 Unfair Dismissal: What if the Employer Can’t Pay?   unfair dismissal

How much can an employer be ordered to pay of it loses a claim for Unfair Dismissal at an Employment Tribunal? For many (especially small) employers an award of compensation to an employee following a finding of unfair dismissal could jeopardise the future of the business, sending it into bankruptcy or liquidation.

The maximum that a Tribunal can award is, currently, £65,300 plus a small basic award calculated on age and length of service (unless the dismissal is connected with health and safety or whistleblowing).  The employee has to be able to prove his/her losses and will be awarded such sum as the Tribunal feels is “just and equitable” in all the circumstances.  S.123 of the Employment Rights Act 1996 is the relevant piece of legislation and also says that the amount of the award is such sum

Constructive Dismissal: Good news for Employers?

Daniel Barnett’s regular news alert brought the case of Aberdeen City Council v McNeill to my attention. It provides a useful reminder about who must be in breach of the contract of employment before an employee can pursue a claim for constructive dismissal.

The facts were these:

Mr McNeill was a long standing employee of the Council. He became embroiled in disciplinary proceedings when his line manager was suspended pending investigation of alleged misconduct of a financial nature.  The Claimant believed he had heard his line manager and a female employee, on two occasions, engaging in sexual activity together.  It appears he was rather indiscreet in keeping this information to himself and was himself suspended for breaching confidentiality, as well as making defamatory remarks about a female colleague.  That same female colleague alleged harassment, sexual harassment and bullying against Mr McNeill.

Costs in Employment Tribunals

At first glance this might not seem the most exciting topic, but bear with me as the recently reported Employment Appeal Tribunal (EAT) case of Daleside Nursing Home v Mrs Mathews has thrown up a very interesting point about when costs might be awarded against the losing party before an Employment Tribunal (ET).

The usual rule is that ETs don’t award costs against the losing party, unlike in the High or County Court where that is the starting point (although even in those venues this rule is subject to several caveats but that is another story).  ETs have the power to award costs, it is just that they don’t do it very often.   The Employment Tribunals (Constitution and Rules of Procedure) Regulations 2004 provide that power. In particular Regulations 38 – 48 set out the costs regime.