Those constructively dismissed can claim notice pay without needing to offset the compenstation against income from the new job
Peters Ltd v Bell EAT [2009]

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Case Summary:-

  • where a claimant is unfairly constructively dismissed and thus received no notice, he can recover a payment in lieu of notice as well as keep any monies earned during this time from his new job.
  • It is argued by employers that this 'double recovery' that only applies to unfair dismissal cases is not in accord with s 123 of the Employment Rights Act 1996 as an employee receives more the financial loss suffered. So this anomaly is expected to be revoked when the House of Lords eventually gets round to it. Until then unfairly dismissed workers can be grateful for the oversight that led to this rare dispensing of a little extra bit of justice.
  • When settling with employers don't allow employers reps to convince you to reduce the notice compensation in line with monies earned since in a new job (mitigation). Unless and until the HoL rules, the notice money is due come what may.
This case is explained in further detail here
 
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