Employment - Loss of Statutory rights - compensation

Employment - Employment - Loss of Statutory rights - compensation

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The recent case of Corbett v Superdrug market Plc [2006], addressed how to guess the award for an employment dispute. The worker had been working for the owner for more than 10 years when she was unfairly dismissed. She brought her case before the Employment Tribunal and was awarded the sum of £1,420 for loss of her statutory rights. However, the Tribunal neglected to give an explanation as to why that outline was reached.

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Employment

The main problem was that it was not made clear how that outline was reached. There were three inherent reasons why the Tribunal awarded her that amount:

* It was recompense for the loss of protection against unfair extraction which it would have taken the worker until 17 May 2006 to acquire; or

* It was recompense for the loss of the right to long notice which she had built up with the owner and did not receive; or

* Both.

The owner appealed against the estimate awarded to the Employment Appeals Tribunal ("Eat"). It argued that the Tribunal had erred in awarding the sum of £1,420 for 'loss of statutory rights'. The owner said that in development this award the Tribunal had used the approved label for recompense for loss of protection from unfair extraction and such an award normally attracted an award of nearby £250. By awarding the worker £1,420 the Tribunal had wildly exceeded its discretion, possibly due to undue condolement for the employee.

The worker submitted that the Tribunal had acted within its powers and that the sum of £1,420 was awarded to reflect the fact that she had lost her statutory rights. Considering she had been employed for over 10 years, she believed that she was entitled to 10 weeks notice which would take a further 10 years to build up again, and therefore the award was justified.

The petition was allowed. The Eat ruled that the Tribunal had failed to by comparison why it had reached the conclusions which it had and had awarded practically six times the usual estimate of recompense without an accepted justification. Although the worker had been employed for more than 10 years and would have accordingly been entitled to recompense for the loss of the right to long notice, it was not accepted to guess the estimate by applying the uncomplicated arithmetic multiplier which was relied upon by the Tribunal. In addition, there were no submissions made by the worker before the Tribunal regarding loss of right to long notice, and therefore an award should not have been made in this regard.

The Eat ruled that the award would be recalculated by the same Tribunal after hearing the accepted submissions.

© Rt Coopers, 2006. This Briefing Note does not contribute a broad or faultless statement of the law relating to the issues discussed nor does it constitute legal advice. It is intended only to feature general issues. Master legal guidance should all the time be sought in relation to single circumstances.

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Posted in: compensation, Employment, rights, Statutory