header-logo header-logo

04 September 2008 / Jeremy Nixon
Issue: 7335 / Categories: Features , Employment
printer mail-detail

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

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Jurit LLP—Caroline Williams

Jurit LLP—Caroline Williams

Private wealth and tax team welcomes cross-border specialist as consultant

Freeths—Michelle Kirkland Elias

Freeths—Michelle Kirkland Elias

International hospitality and leisure specialist joins corporate team as partner

Flint Bishop—Deborah Niven

Flint Bishop—Deborah Niven

Firm appoints head of intellectual property to drive northern growth

NEWS
Talk of a reserved ‘Welsh seat’ on the Supreme Court is misplaced. In NLJ this week, Professor Graham Zellick KC explains that the Constitutional Reform Act treats ‘England and Wales’ as one jurisdiction, with no statutory Welsh slot
The government’s plan to curb jury trials has sparked ‘jury furore’. Writing in NLJ this week, David Locke, partner at Hill Dickinson, says the rationale is ‘grossly inadequate’
A year after the $1.5bn Bybit heist, crypto fraud is booming—but so is recovery. Writing in NLJ this week, Neil Holloway, founder and CEO of M2 Recovery, warns that scams hit at least $14bn in 2025, fuelled by ‘pig butchering’ cons and AI deepfakes
After Woodcock confirmed no general duty to warn, debate turns to the criminal law. Writing in NLJ this week, Charles Davey of The Barrister Group urges revival of misprision or a modern equivalent
Family courts are tightening control of expert evidence. Writing in NLJ this week, Dr Chris Pamplin says there is ‘no automatic right’ to call experts; attendance must be ‘necessary in the interests of justice’ under FPR Pt 25
back-to-top-scroll