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04 September 2008 / Jeremy Nixon
Issue: 7335 / Categories: Features , Employment
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Managing the credit crunch

Part 2: Jeremy Nixon reviews the law in relation to mitigation of loss

It is well established that an individual who has been unfairly or wrongfully dismissed by their employer is under a duty to take reasonable steps to mitigate their loss. The question of loss is often a key battle ground in any litigation, particularly where the parties are discussing the possibility of a settlement. Frequently, employees have high expectations in terms of the amount they are likely to recover. On the other hand, employers often prefer to focus on the question of loss particularly where their case in relation to liability is not strong. The employer's primary aim here will be to inject what they regard as some realism into the employee's expectations.
General principles

A claimant in a wrongful or unfair dismissal case is required to give credit for any sums received following their dismissal either by way of social security payments or earnings. Further, the claimant cannot recover damages for any losses which he could reasonably have avoided. The duty to mitigate only arises following dismissal and at this point

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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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