Employment Alert No. 85 - Damages for Non-Economic Loss in Unfair Dismissal Cases
July 15, 2004
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Introduction |
The House of Lords this morning issued its judgment in the long-running case of Dunnachie v Kingston-upon-Hull City Council .
This case has had an inconsistent journey through the Tribunals and Courts.
The Employment Tribunal decided that it could award Mr Dunnachie damages for injury to feelings in his unfair dismissal case. Then, in June 2003 (Employment Alert No. 66), the Employment Appeal Tribunal decided that the recovery of non-economic loss in claims of unfair dismissal was not permissible.
Then, in early 2004 (Employment Alert No. 82), the Court of Appeal disagreed, and decided that damages for injury to feelings brought about the manner of an unfair dismissal could be awarded in unfair dismissal cases.
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What Has the House of Lords decided? |
That the recovery of non-economic loss in unfair dismissal claims is not permissible. The reference to "loss" in the Employment Rights Act 1996 was only intended by Parliament to mean financial loss.
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What does this mean for employers? |
It is now, finally, decided that Tribunals may not make awards for injury to feelings in unfair dismissal cases.
This is clearly helpful to employers currently dealing with either litigation or settlement negotiations in which an employee's representative is claiming injury to feelings. Any such claims may now, quite properly, be rejected.
