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Constructive Dismissal – Credit for sums earned during notice period
Written by Rachel Billen   
Thursday, 10 September 2009 15:48

The Employment Appeal Tribunal’s decision in Stuart Peters –v- Bell has been overruled by the Court of Appeal.

The case of Norton Tool –v- Tewson held that in claims of unfair dismissal, employees are entitled to compensation for all of the notice period, even if they found another job during that period.  This could mean that employees could, in effect, be paid twice for the same period.

In Stuart Peters –v- Bell, the Employment Appeal Tribunal had previously held that the rule also applied to cases of constructive unfair dismissal.

The Court of Appeal disagreed.  Where an employee brings a claim for constructive dismissal and claims compensation in relation to the period of notice they were entitled to, they must now give credit for sums earned in other employment during that period.