Software 2000 Ltd v. Andrews & Ors [2007] UKEAT 0533_06_2601 (26 January 2007)

Software 2000 Ltd v. Andrews & Ors [2007] UKEAT 0533_06_2601 (26 January 2007)

The Tribunal erred in law by failing to consider whether there was reliable evidence to justify a Polkey reduction in compensation for unfair dismissal, even though the evidence was insufficient to show that dismissal would have occurred on the balance of probabilities. The Tribunal should have considered whether there was a real chance of dismissal and reduced compensation accordingly.

Citation
[2007] UKEAT 0533_06_2601
Parties
Respondents/claimants: Mr Andrews, Mr Trinder, Mr Prowse, Mr Lawrence; Appellant/respondent: [Appellant Company]
Jurisdiction
United Kingdom
Judgment Date
26 January 2007
Procedural Posture
Employment Appeal / Appeal From Employment Tribunal Decision on Unfair Dismissal and Compensation
Outcome
Appeal allowed in part; case remitted to Tribunal for reconsideration of compensation.
Legal Topics
Unfair Dismissal, Redundancy, Compensation Assessment, Procedural Fairness, Polkey Reduction, Section 98 a Employment Rights Act 1996

Case Brief

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Parties

Mr Andrews, Mr Trinder, Mr Prowse, Mr Lawrence

Respondents/claimants

[Appellant Company]

Appellant/respondent

Procedural Posture

Employment Appeal / Appeal From Employment Tribunal Decision on Unfair Dismissal and Compensation

  1. 1 Whether the Employment Tribunal erred in failing to consider a Polkey reduction in compensation for unfair dismissal due to redundancy where procedural defects existed
  2. 2 Whether there was reliable evidence to justify a reduction in compensation based on the chance of dismissal even if fair procedures had been followed

Ratio Decidendi

The Tribunal erred in law by failing to consider whether there was reliable evidence to justify a Polkey reduction in compensation for unfair dismissal, even though the evidence was insufficient to show that dismissal would have occurred on the balance of probabilities. The Tribunal should have considered whether there was a real chance of dismissal and reduced compensation accordingly.

Court Disposition

Appeal allowed in part; case remitted to Tribunal for reconsideration of compensation.

Orders

  • Remit to the same Employment Tribunal to consider whether, and to what extent, compensation should be reduced for each claimant in light of the Polkey principle and reliable evidence.