Calculating compensation

Case 13: The facts

John Dillon was unfairly dismissed and was awarded a basic award only, with no compensation for his loss of earnings following dismissal.

The tribunal decided that his unemployment was due to his incapacity and not to the dismissal itself.

The ruling

The EAT held that the tribunal was right not to make a compensatory award. It said that a period of unemployment triggered by an unfair dismissal would not lead to a compensation award if the unemployment was caused by incapacity (through illness) that was unrelated to the dismissal itself.

Everest v Dillon EATS/0052/03