Chapter 9
The employer’s ability to pay
[ch 9: page 84]Compensation cannot be reduced to take account of the size of the employer, or their ability to pay:
The employer, a small acupuncture business, argued that an unfair dismissal award of £11,000 would force the business into insolvency. This was irrelevant, confirmed the EAT. Small employers cannot use the argument that they have fewer resources to avoid paying the level of compensation that reflects the employee’s loss.
Tao Herbs and Acupuncture Limited v Jin [2010] UKEATPA/1477/09