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Remedies for wrongful dismissal (When assessing the loss, the courts will…
Remedies for wrongful dismissal
Damages
designed to compensate a party and put them in the same position he would have been in if the contract had been property performed (Hadley v Baxendale)
to pay the relevant amount of money for the notice period and any wages that have not been paid
in addition, the employee can claim for loss of holiday pay, bonus payments, commission, loss of pension
not awarded for loss of future prospects or injured feelings (Addis v Gramophone Co Ltd)
Restrictive Covenants
a wrongful dismissal will free the employees from any covenant in restrain of trade
(General Billposting Co Ltd v Atkinson)
When assessing the loss, the courts will consider:
income tax liability
unemployment benefits received by the employee
NI contributions payable
any unfair dismissal compensation received
redundancy payments received
Other remedies apart from damages
quantum meruit - an equitable remedy compelling the defendant to pay for performance done and already accepted
injunction: a court will not grant an injunction requiring a specific performance of a contract for personal services
Civil court or employment tribunal
bringing an action in the civil courts may be better than bringing it to the tribunal
Limitation period:
3 months - tribunal
6 years - civil courts
Where an employee is highly paid, had a long notice period or on a fixed-term contract with no provisions for early termination, will gain more from a wrongful dismissal claim in civil courts
Claims in a tribunal - subject to a ceiling of £25,000. No max in the High Court or county courts.
Tribunal does not have jurisdiction to make a declaration or an injunction.
Advantages of tribunals - resolved more quickly, lower legal costs involved. Civil courts are expensive and the losing party will pay the costs of the winning party.