LRD guides and handbook November 2014

Unfair dismissal - a legal guide for union reps

Chapter 9

Money already paid by the employer

[ch 9: page 83]

Any compensation already paid by the employer as a consequence of the dismissal will be deducted from the tribunal’s award.

Redundancy payments are deducted (Digital Equipment v Clements [1998] IRLR 134), but only if the tribunal finds that there was a redundancy:

An employer terminated Mr Boorman’s employment, paying him an ex-gratia payment, which the employer claimed to be statutory redundancy pay. However, the Court of Appeal ruled that since there had been no genuine redundancy situation, the ex-gratia payment could not be deducted.

Boorman v Allmakes [1995] IRLR 553