Burlo v Langley & Anor

Burlo v Langley & Anor

Compensation for unfair dismissal under section 123 ERA 1996 must be based on the actual loss suffered by the employee as a consequence of the dismissal. Where the contract entitles the employee only to statutory sick pay during the notice period due to sickness, compensation cannot be calculated on the basis of normal pay. The principle in Norton Tool v Tewson does not justify awarding more than actual loss, and any wider application of good industrial practice is not permitted if it results in a bonus or double recovery.

Parties
Appellant: Ana Burlo; Respondent: David Langley; Respondent: Caroline Carter
Jurisdiction
England and Wales
Judgment Date
21 December 2006
Procedural Posture
Civil Appeal / Judgment on Appeal From Employment Appeal Tribunal
Outcome
appeal dismissed
Legal Topics
Unfair Dismissal, Compensatory Awards, Statutory Interpretation, Employment Contracts, Industrial Relations Practice

Case Brief

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Parties

Ana Burlo

Appellant

David Langley

Respondent

Caroline Carter

Respondent

Procedural Posture

Civil Appeal / Judgment on Appeal From Employment Appeal Tribunal

  1. 1 Whether compensation for unfair dismissal under section 123 of the Employment Rights Act 1996 should be based on normal pay or statutory sick pay during the notice period when the employee is unfit for work due to sickness.
  2. 2 Whether the principle in Norton Tool v Tewson remains good law post-Dunnachie v Kingston upon Hull City Council.

Ratio Decidendi

Compensation for unfair dismissal under section 123 ERA 1996 must be based on the actual loss suffered by the employee as a consequence of the dismissal. Where the contract entitles the employee only to statutory sick pay during the notice period due to sickness, compensation cannot be calculated on the basis of normal pay. The principle in Norton Tool v Tewson does not justify awarding more than actual loss, and any wider application of good industrial practice is not permitted if it results in a bonus or double recovery.

Court Disposition

appeal dismissed

Orders

  • The appeal is dismissed; the Employment Appeal Tribunal's decision stands.