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Unfair dismissal compensation may go through the roof pending outcome of landmark case
Added: 2010-04-26 15:58:33.0Employers are currently waiting with baited breath to see the outcome of the current Edwards Vs. Chesterfield Royal Hospital NHS Foundation Trust case that began last week. The Court of Appeal will hear the case in which Edwards, a hospital consultant, has claimed that the trust did not follow their own contractually-binding disciplinary procedure correctly before he was dismissed. According to legal experts, a win for Edwards could lead to many more multi-million pound payouts in the future.
Edwards claims that if the trust’s disciplinary procedure had been followed correctly, he would have not been dismissed. He is therefore claiming over £4 million compensation to reflect supposed lost earnings. However, the trust claims that it did follow the procedure correctly and that regardless of the outcome, Edwards’ damages should be capped at the amount that he would have earned during his three-month notice period.
Unfair dismissal payouts are currently capped at £65,300; however Edwards is attempting to get round the capped figure by also claiming for damages due to breach of contract.
If Edwards is successful in his appeal, employers have been advised to take even further caution when it comes to dismissing employees and it is recommended that disciplinary procedures are reviewed and then followed to a tee. It would set an unpleasant precedent for many employers, particularly those who have high earners on their team.
Employers need to ensure that their disciplinary policies and procedures are up-to-date with current legislation and are fair. They also need to make sure that they are familiar with the necessary procedures and that they make sure they handle situations correctly from the start.
If you are concerned about whether or not your business’ disciplinary procedure is up to date, or if you do not have one, a completely up-to-date and compliant disciplinary policy makes up part of the Cleardocs Best Practice staff handbook. We also now supply disciplinary letters to help make the process smoother for you – Cleardocs Disciplinary letters.
If you have any questions about any of the above, give us a call on 0845 474 0372.
The content of this blog is not legal advice and should not be relied on as such, or used instead of seeking legal advice.
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