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Compensation: Application of discount for accelerated payment of future loss

This report relates to 1 case(s)

  • expand disabled

    Bentwood Bros (Manchester) Ltd v Shepherd [2003] IRLR 364 CA (0 other reports)

Key Points

  • In Bentwood Brothers (Manchester) Ltd v Shepherd [2003] IRLR 364 the Court of Appeal holds that as a matter of principle, an employment tribunal should take account of the fact that a complainant who is awarded compensation for future loss of earnings has the benefit of accelerated payment in receiving a sum which he or she would otherwise receive in instalments over the period of loss.
  • The discount of 5% conventionally applied to accelerated payments is designed to reflect the annual yield on investment of the sum awarded in compensation.