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Unfair Dismissal Compensation: Deductions


Compensation & Deductions 

In this episode 9 of the HR & Employment Law Podcast I bring you a summary of a recent Employment Appeal Tribunal Case, Contract Bottlling Ltd v Cave and McNaughton. In which the Appeal Tribunal gave a very helpful judgement on the way in which deductions from unfair dismissal compensation should be dealt with.

The particular issue in this case involved a question over deductions from unfair dismissal compensation due to a principle known as Polkey.

Particularly you will learn….

  • What the key principle is when deciding unfair dismissal compensation
  • The deductions that can be made from compensation
  • What a ‘Polkey’ deduction is
  • How a ‘Polkey’ deduction is and should be calculated

HR Best Practice Tip

The HR tip of the week is the first in a series of tips about dealing with recruitment. Recruiting staff is both costly and time consuming and therefore it is important that you get it right. This first tip will help your new staff to fit in and make them feel at ease quickly, ensuring that they become productive quickly and are less likely to leave.

Podcast references

In this episode I refer to the case of Contract Bottlling Ltd v Cave and McNaughton and you can read the full judgement here

If you would like to read more about the principles in Polkey I have created a legal update post here

You can find out more about my HR and legal support package for employers, Empirical Support’ here



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Real Employment Law Advice LogoThe information contained in this blog post is provided for guidance and is a snapshot of the law at the time it is written. It is provided for your information only and should not be used as a substitute for obtaining legal advice that it specific to your particular circumstances.

The guidance should not be relied upon in any decision making process. It is strongly recommended that you seek advice before taking action.