Employment - Loss of Statutory rights - compensation

Workers Comp Legal Advice - Employment - Loss of Statutory rights - compensation

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The new case of Corbett v Superdrug shop Plc [2006], addressed how to presuppose the award for an employment dispute. The laborer had been working for the boss 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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The main problem was that it was not made clear how that outline was reached. There were three possible reasons why the Tribunal awarded her that amount:

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

* It was payment for the loss of the right to long consideration which she had built up with the boss and did not receive; or

* Both.

The boss appealed against the whole 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 boss said that in manufacture this award the Tribunal had used the accepted label for payment for loss of protection from unfair extraction and such an award usually attracted an award of colse to £250. By awarding the laborer £1,420 the Tribunal had wildly exceeded its discretion, possibly due to undue condolence for the employee.

The laborer 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. Inspecting she had been employed for over 10 years, she believed that she was entitled to 10 weeks consideration which would take a additional 10 years to build up again, and therefore the award was justified.

The appeal was allowed. The Eat ruled that the Tribunal had failed to elaborate why it had reached the conclusions which it had and had awarded practically six times the usual whole of payment without an standard justification. Although the laborer had been employed for more than 10 years and would have accordingly been entitled to payment for the loss of the right to long notice, it was not standard to presuppose the whole by applying the easy arithmetic multiplier which was relied upon by the Tribunal. In addition, there were no submissions made by the laborer before the Tribunal about 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 standard submissions.

© Rt Coopers, 2006. This Briefing Note does not provide a wide or complete statement of the law relating to the issues discussed nor does it constitute legal advice. It is intended only to feature normal issues. Scholar legal guidance should all the time be sought in relation to singular circumstances.

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