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11 December 2009 / Rad Kohanzad
Issue: 7397 / Categories: Features , Employment
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Balance of payments

Rad Kohanzad examines the dents in the Norton Tool principle

The decision of the Court of Appeal in Stuart Peters v Bell [2009] EWCA Civ 938, [2009] All ER (D) 54 (Oct) provides that an employee who is constructively unfairly dismissed without notice has to give credit for earnings he earns during his notice period. An expressly dismissed employee does not.

This decision represents another nail in the coffin for the “notice pay” point in Norton Tool v Tewson [1972] ICR 501, [1973] 1 All ER 183. Are there any more such nails lurking? 

Section 123 of the Employment Rights Act 1996 is the statutory provision that dictates compensation in unfair dismissal cases, and is the same provision that was in existence at the time of Norton Tool, although within a different Act.

NIRC ruling

In apparent contradiction to the common law duty to mitigate your losses, the National Industrial Relations Court (NIRC)—now the Employment Appeal Tribunal (EAT)—in the case of Norton Tool, found that where employees are unfairly dismissed without notice they are entitled to be paid their full notice pay, even if

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MOVERS & SHAKERS

Hogan Lovells—Lisa Quelch

Hogan Lovells—Lisa Quelch

Partner hire strengthens global infrastructure and energy financing practice

Sherrards—Jan Kunstyr

Sherrards—Jan Kunstyr

Legal director bolsters international expertise in dispute resolution team

Muckle LLP—Stacey Brown

Muckle LLP—Stacey Brown

Corporate governance and company law specialist joins the team

NEWS

NOTICE UNDER THE TRUSTEE ACT 1925

HERBERT SMITH STAFF PENSION SCHEME (THE “SCHEME”)

NOTICE TO CREDITORS AND BENEFICIARIES UNDER SECTION 27 OF THE TRUSTEE ACT 1925
Law firm HFW is offering clients lawyers on call for dawn raids, sanctions issues and other regulatory emergencies
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