• Dismissal Payouts to RISE David Shaw 03/03/2004

Employers could face increased compensation payouts following a latest landmake ruling that took the employees feelings into consideration.

Dunnachie v Kingston upon Hull City Council saw a majority decision where the Court of Appeal ruled that damages for nonfinancial losses, such as injury to feelings, where available for unfair dismissal.

The award was made of £51,700, including £10,000 for injury to feelings that had left him in a state of "overt dispair"

For the past 30 years it has been the view that employees were entitled only to compensation for the financial losses resulting from an unfair dismissal. Giving the leading judgment, Lord Justice Sedley stated that the ruling did not mean that every upset caused by an unfair dismissal carried a compensatory award -

" The power is there to permit tribunals to compensate an employee for a real injury to his or her self-respect. It would apply where the employee was driven out of the job"

Employers should take note, the number of claims against small businesses are on the increase, so are the payouts being made!