It is often difficult for employers, particularly small employers, to accept that their ability to pay any compensation awarded is irrelevant when it comes to the Tribunal’s assessment of compensatory awards in unfair dismissal claims. The judgment of the EAT in Tao Herbs & Acupuncture Ltd v Jin acts as a reminder that Employment Tribunals should not take into account the employer's ability to pay when considering how much compensation to award an unfairly dismissed employee.