The EAT has held that if a tribunal finds that an employee was constructively dismissed, and that dismissal was unfair, the compensatory award should include payment in lieu of the whole of the employee’s notice period, even where the employee has obtained employment elsewhere within that period.  

This controversial principle was already established in ‘regular’ unfair dismissal cases and can result in claimants getting double recovery.  

It is now clear that the principle also applies in constructive dismissal cases, however the Employment Judge did express a hope that the House of Lords will settle the controversy surrounding this principle. Unfortunately, it is unlikely that this case will be appealed and so we will have to wait for a future House of Lords decision.  

Stuart Peters Ltd v Bell, EAT