• No special treatment for final salary pension loss

Final salary pension loss must be treated in the same way as any other loss. Where an unfairly dismissed employee gets a new job and this is treated as breaking the chain of causation for financial loss, tribunals cannot award pension loss continuing past this point.

A recent EAT decision ruled that employers could have to compensate an employee for the ongoing loss of a final salary pension scheme, even after the employee obtains a new job breaking the chain of causation with a higher total remuneration package (but a money purchase pension). The Court of Appeal has overruled this decision. (Aegon UK v Roberts, CA)

  • Earnings during notice must be credited against constructive dismissal compensation

Employees who claim unfair constructive dismissal must give credit for earnings received from another job during what would have been their notice period.

Where an employer has terminated an employment without notice, unfair dismissal compensation must include full remuneration for the employee's notice period, even if the employee received earnings from another job during that period. This does not apply where the employee has resigned and claimed constructive dismissal, according to the Court of Appeal (overturning the EAT decision). (Stuart Peters v Bell, CA)