Mitigation of loss

Case 1: The facts

Forbes Johnston was dismissed from his job on an egg farm when he was unable to tell the owner the whereabouts of a box of eggs that had disappeared. He was later offered his job back but refused it.

The issue was whether Johnston had mitigated his losses (and was therefore entitled to compensation) having refused to return to work.

The ruling

The Employment Appeal Tribunal held that the tribunal had a duty to consider whether Johnston had mitigated his losses, and the issue was referred back to the tribunal for a decision.

The finding that he had been unfairly dismissed remained.

Allarburn Farm Dairy Ltd v Forbes Johnston EATS/0083/05