Landmark ruling on compensation

A Court of Appeal ruling in February could mean better compensation for victims of workplace bullying and other cases of unfair dismissal.

Christopher Dunnachie originally won £10,000 at an employment tribunal for mental distress after he suffered a period of harassment from his line manager at Hull City Council.

The council failed to recognise or deal with the situation, and Dunnachie was forced to find a lower-paid job in another council to escape the bullying. He then resigned and made his claim for unfair dismissal, backed by the public services union UNISON.

The original employment tribunal found his experience to have been so bad that it awarded him the maximum compensation under the law at the time. However, an Employment Appeal Tribunal later stripped him of the award for psychiatric damage, so Dunnachie took his case to the Court of Appeal.

In awarding victory in the appeal over the unfair dismissal, the court overturned a 30-year-old reading of employment law. This means thousands of similar claimants may be entitled to more compensation than expected.

The ruling means that employers found to have allowed bullying to take place could be liable for compensation claims for more than sheer economic loss of income - for example, compensation for stress or loss of reputation could be claimed.

The case will now go to the House of Lords.