23 March 2010 #Employment
It was established in the case of Wood v Mitchell SA Ltd, that tribunals should not generally take supervening ill health to be the cut-off point when estimating what loss an employee has suffered for the purposes of calculating compensation for unfair dismissal.
In this case, the employee suffered psychiatric ill-health after his dismissal. The Tribunal held that as the illness was not connected to actions taken by the employer, no compensation would be awarded for this element of the loss. The EAT considered this view to be too narrow as the Tribunal should have considered the financial value of the employee`s rights during the period of ill health. The case was remitted to the Tribunal.