Norton Tool Co v Tewson [1972] ICR 501

• (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 Plaintiff 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.