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Unfair dismissal: Full amount of incapacity benefit to be deducted in assessing loss

This report relates to 1 case(s)

  • expand disabled

    Morgans v Alpha Plus Security Ltd [2005] IRLR 234 EAT (0 other reports)

Key points

In Morgans v Alpha Plus Security Ltd, the EAT holds:

  • An employment tribunal was right to deduct the full amount of incapacity benefit received by the unfairly dismissed employee in calculating the compensatory award. Section 123 of the Employment Rights Act 1996 makes it clear that the purpose of that award is to reimburse the employee's economic loss. The words "the amount … shall be such amount as the tribunal considers just and equitable" do not enable the tribunal to award a sum that is greater than that economic loss.