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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

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NEWS
Contract damages are usually assessed at the date of breach—but not always. Writing in NLJ this week, Ian Gascoigne, knowledge lawyer at LexisNexis, examines the growing body of cases where courts have allowed later events to reshape compensation
The Supreme Court has restored ‘doctrinal coherence’ to unfair prejudice litigation, writes Natalie Quinlivan, partner at Fieldfisher LLP, in this week' NLJ
The High Court’s refusal to recognise a prolific sperm donor as a child’s legal parent has highlighted the risks of informal conception arrangements, according to Liam Hurren, associate at Kingsley Napley, in NLJ this week
The Court of Appeal’s decision in Mazur may have settled questions around litigation supervision, but the profession should not simply ‘move on’, argues Jennifer Coupland, CEO of CILEX, in this week's NLJ
A simple phrase like ‘subject to references’ may not protect employers as much as they think. Writing in NLJ this week, Ian Smith, barrister and emeritus professor of employment law at UEA, analyses recent employment cases showing how conditional job offers can still create binding contracts
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