(NB compensation comprises the basic award (mathematical formula taking into account age, years of service and level of pay- s.119- max. of £11,400, changing with inflation- same as redundancy payment) and compensatory award, which is left to discretion of tribunal-see above re s.123- but which has a max. of £66,200, except in discrimination cases). There was a dispute about the level of compensatory award (i.e. second element of compensation) and CA set out some principles on working it out.
Sir John Donaldson: Wrongful dismissal compensation is of no relevance here. The object is to compensate and NOT to award a bonus (except possibly where an employer refuses to reengage someone in accordance with a tribunal’s ruling). Loss has to be calculated precisely and does not include hurt to feelings. The tribunal need only consider the manner of the dismissal insofar as it caused P financial loss e.g. by making him less employable in the future or a prime candidate for dismissal. The tribunal can include damages for loss of protection with change of job to new employment (since unfair dismissal protection has a qualifying period and before then there’s only the meagre protection for wrongful dismissal). Fault of the employer is not a factor for consideration.