The EAT has been confirmed in its view that the decision in Norton Tool Co Ltd v Tewson was good law. The Court of Appeal held that
when tribunals assess the amount of a compensatory award for unfair dismissal, they should not reduce its amount in the light of any earnings that the employee has earned from another employer during the notice period.
The Court of Appeal decision in Norton does not however allow the principle to be extended outside of unfair dismissal cases to that of wrongful dismissal or contract for example.
A point that could not be resolved by the Court of Appeal was whether Dunnachie v Kingston upon Hull City Council undermined the decision in Norton (on its narrowest interpretation) as Norton did not accord with s 123 of the Employment Rights Act 1996 as the employee receives thereby more than the actual loss suffered.
This point did not arise on the facts and could not therefore be addressed by the Court of Appeal in this case.
The transcript of this case can be found
Here
© Workrep 23 / 12 / 2006