In Rao v Civil Aviation Authority, it was held that, when calculating the compensatory element of unfair dismissal compensation, an industrial tribunal should first assess what amount it would be just and equitable to award for the loss the applicant has suffered as a result of the dismissal, which may involve a reduction to reflect the possibility that the applicant would have been dismissed even if the employer had acted reasonably. Only then should the tribunal consider whether, and to what extent, it would be just and equitable to reduce the award further on the basis that the applicant's conduct contributed to his or her dismissal.
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