Deduction from compensation

Case 10: The facts

Ms Truelove had worked for her employer for 15 years when her partner, a former colleague, started working for one of its competitors. Truelove was suspended, and subsequently dismissed, because she had access to confidential information that her employer feared may inadvertently fall into the competitor's hands.

Truelove brought a claim for constructive dismissal. The tribunal found that she had been constructively unfairly dismissed because of the lack of consultation with her. However, there was an issue over whether the amount of compensation she received should be reduced, on the basis that she would have been dismissed even if she had been properly consulted.

The ruling

The EAT found that there was a fair reason for dismissal on the grounds of "some other substantial reason" (SOSR) - the employer had real concerns about a leak of confidential information - and that Truelove's employment would inevitably have ended after adequate consultation.

Therefore, while confirming that Truelove had been unfairly dismissed, the EAT held that she was entitled only to the basic award, her notice pay, and pay for the additional three weeks that the tribunal estimated it would have taken for the consultation to take place. She was not entitled to any additional compensatory award.

Photo Corporation v Truelove UKEAT/054/04