Digital Equipment Co Ltd v Clements (No.2) [1997] IRLR 140 EAT

Reports relating to this case:

  • Unfair dismissal remedies: All termination payments deducted before "Polkey reduction"

    Date:
    15 March 1997

    In Digital Equipment Co Ltd v Clements (No.2), the EAT holds that, in calculating the compensatory award for unfair dismissal, any termination payment the employee received from the employer should be deducted from his or her loss caused by the dismissal before reducing that net loss by the percentage chance, if any, that he or she would have been retained had the employer acted fairly.

  • Deductions from wages: Redundancy payment deducted after "Polkey reduction"

    Date:
    1 October 1996

    The correct method for calculating the compensatory award for unfair dismissal of an employee dismissed by reason of redundancy, where the employee received a contractual redundancy payment and the industrial tribunal found that there was a 50% chance that he would have been retained if a fair procedure had been followed, is to halve the employee's loss arising from the dismissal and then to deduct the redundancy payment from that sum, holds the EAT in Digital Equipment Co Ltd v Clements.