Claimant v James Mackle (UK) Limited
Outcome
Individual claims
The tribunal found the claimant was unfairly dismissed. However, on reconsideration, the compensatory award was revoked because the enhanced redundancy payment made by the respondent exceeded the compensatory award after applying the Polkey reduction, and under s.123(7) ERA 1996 this excess must reduce the compensatory award to nil.
Facts
This is a reconsideration judgment following a hearing on 23 August 2024. The original judgment found the claimant was unfairly dismissed and awarded compensatory damages of £1,222.50. However, the judge identified an error in the calculation: credit had not been given for the enhanced redundancy payment of £1,680 made by the respondent (in excess of the statutory redundancy payment).
Decision
The tribunal varied the original judgment to correct the calculation error. Under s.123(7) ERA 1996, the enhanced redundancy payment in excess of statutory redundancy must be credited against the compensatory award after applying the Polkey reduction. Since the £1,680 enhanced payment exceeded the compensatory award, the award was reduced to nil.
Practical note
Enhanced redundancy payments exceeding the statutory amount must be credited against compensatory awards for unfair dismissal under s.123(7) ERA 1996, and this credit applies after any Polkey reduction, potentially extinguishing the compensatory award entirely.
Legal authorities cited
Statutes
Case details
- Case number
- 3308194/2023
- Decision date
- 25 September 2024
- Hearing type
- reconsideration
- Hearing days
- 1
- Classification
- procedural
Respondent
- Sector
- other
- Represented
- No
Claimant representation
- Represented
- Yes
- Rep type
- lay rep