The Court of Appeal has held that, when calculating the amount of the compensatory award due to a constructively dismissed employee, tribunals must offset earnings from alternative employment during the notice period.

The decision limits the principle in Norton Tool (that it is good industrial practice for an employer who has unfairly dismissed an employee summarily without notice, to compensate them fully in respect of their notice period without reduction for alternative earnings) only applies to actual, and not to constructive, dismissals.

Stuart Peters Limited v Bell [2009]