Law queries

If an employer retires someone with the offer of a lump sum, but is then found to have unfairly dismissed that employee, can the lump sum be taken into account in assessing the compensation for unfair dismissal?

If the lump sum is discretionary the tribunal can take account of it in assessing the compensation for unfair dismissal. In one recent case the Employment Appeal Tribunal held that since the payment was non-contractual and would not have been made but for the employee's dismissal, as a matter of justice and equity, it ought to be taken into account.

* More information: Hodes v Marks & Spencer EAT/0716/00