Veitch Penny LLP - Exeter | Crediton, Devon

Case

Christopher Dunnachie v Kingston upon Hull Council
Court of Appeal - (11 February 2004)

Issues

(1) Unfair dismissal
(2) Compensation
(3) Non-economic loss

Facts

Mr Dunnachie had been employed as an Environmental Health Officer. The Employment Tribunal had found that he had been driven from his position due to a campaign of workplace bullying from his Manager and by the failure of management to step in. At one point he was so upset he crouched on the floor of the office of the Council’s Chief Public Protection Officer with his hands around his head shouting “No!” The effect of this forced him to leave his job and get a less well-paid job located further away from his home.

As the Tribunal found he had been constructively and unfairly dismissed, he was awarded compensation for loss of earnings and future earnings, and the additional cost of travelling to his new job. In line with the case of Johnson –v- Unisys Ltd (2003) he was awarded £10,000.00 for the distress that he suffered. (The total award he received was £123,328.28 which was reduced to the statutory cap of £51,700.00.) Legislation provided that compensation for unfair dismissal should be such amount as the Tribunal considered just and equitable in all the circumstances having regard to the loss sustained as a result of the dismissal, which could be attributable to the actions of the employer.

The local authority appealed. The Employment Appeal Tribunal (EAT) confirmed that only quantifiable financial losses could be recovered as compensation for unfair dismissal (under Section 123 of the Employment Rights Act 1996).

Dunnachie appealed the EAT’s decision that damages were confined to financial losses.

Decision

The Appeal would be allowed; the £10,000.00 award was appropriate in the circumstances.

The statutory formula found in the legislation allowed for the recovery of non-financial losses caused by unfair dismissal (in line with normal principles). Financial loss alone was too narrow.

Consequently there was no reason why, in the appropriate circumstances, compensation could not include non-economic loss. The emphasis is on what is just and equitable, and there is no reason why it could not include compensation for distress, humiliation or damage to reputation in the community or family life.

Comments

This important judgment confirms that an unfairly dismissed employee can recover compensation for injury to feelings. However, an Appeal to the House of Lords has been listed for 19th and 20th May 2004 and the position may change. However, it should be noted that the award for £10,000.00 makes no difference to the total award payable in this case, due to the effect of the statutory cap.