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Unfair dismissal remedies: Sequence of deductions when calculating compensation

This report relates to 2 case(s)

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    Derwent Coachworks v Kirby [1994] IRLR 639 EAT (0 other reports)

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    Egerton and others v Hewitt Refractories Ltd EAT/326/92 (0 other reports)

In two recent cases the EAT has reached contrasting conclusions on the question of whether, when calculating a compensatory award, an industrial tribunal should deduct a payment in lieu of notice before or after any percentage reduction is applied for other reasons. In Derwent Coachworks v Kirby the EAT holds that a reduction on the grounds of contributory conduct should be made first, and then the payment in lieu of notice deducted from the balance, because to do otherwise would effectively give a "bonus" to an employee whose blameworthy conduct contributed to his or her dismissal.