In Tao Herbs & Acupuncture Ltd v Mrs Y Jin an Employment Tribunal upheld a claim by Mrs Yin that she had been unfairly dismissed for the assertion of a statutory right and awarded her £11,000.
The amount of the award was appealed by the employer who argued that their ability to pay should be taken into account. The Employment Appeals Tribunal disagreed and held that the compensatory award relates to what is just and equitable in all the circumstances having regard to the loss sustained by the employee because of the action taken by the employer. The employer's ability to pay an award is not a relevant consideration.
Best Practice
If there is a strong chance of liability then it may be better to negotiate a settlement at an early stage which may include the ability to agree staged payments in relation to any compensation.
This publication is for guidance only. Reliance should not be placed upon it and nor should action be taken, without obtaining advice in respect of the specific circumstances applicable. We will be pleased to provide such advice or assistance.
