Watson v. Student Loans Company Ltd [2002] ScotCS 279 (24 October 2002)

Watson v. Student Loans Company Ltd [2002] ScotCS 279 (24 October 2002)

The measure of damages for wrongful dismissal is not limited to one year's notice if the contract entitles the employee to further benefits (such as long-term disability payments) during sickness; dismissal in breach of those terms entitles the employee to damages for loss of those benefits.

Citation
[2002] ScotCS 279
Parties
Pursuer: Ian Smith Watson; Defenders: Student Loans Company Limited
Jurisdiction
Scotland
Judgment Date
24 October 2002
Procedural Posture
Civil Wrongful Dismissal / Procedure Roll Plea to Relevancy
Outcome
Defenders' first plea-in-law not sustained; proof before answer allowed with all pleas standing.
Legal Topics
Wrongful Dismissal, Measure of Damages, Employment Contracts, Sick Pay and Disability Benefits
Employment Law Contract Law Wrongful Dismissal Measure of Damages Employment Contracts Sick Pay and Disability Benefits

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Parties

Ian Smith Watson

Pursuer

Student Loans Company Limited

Defenders

Procedural Posture

Civil Wrongful Dismissal / Procedure Roll Plea to Relevancy

Legal Issues

  1. 1 Whether the measure of damages for wrongful dismissal is limited to one year's notice or extends to loss of long-term disability benefits under the employment contract
  2. 2 Whether the employer could dismiss the employee while he was off sick and entitled to contractual benefits

Ratio Decidendi

The measure of damages for wrongful dismissal is not limited to one year's notice if the contract entitles the employee to further benefits (such as long-term disability payments) during sickness; dismissal in breach of those terms entitles the employee to damages for loss of those benefits.

Court Disposition

Defenders' first plea-in-law not sustained; proof before answer allowed with all pleas standing.

Orders

  • Allow proof before answer with all pleas standing.