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Unfair dismissal remedies: Excess redundancy pay deducted last

This report relates to 1 case(s)

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    Digital Equipment Co Ltd v Clements (No.2) [1998] IRLR 134 CA (0 other reports)

The excess of any redundancy payment made to an employee over and above the basic award for unfair dismissal (that is, the equivalent of any statutory redundancy payment which is due) must be deducted from the compensatory award after any Polkey reduction in compensation has been made to reflect the percentage chance that the employee would have been dismissed in any event, holds the Court of Appeal in Digital Equipment Co Ltd v Clements 4.12.97 Court of Appeal. Parliament had, said the Court, drawn a clear distinction between calculating "the loss sustained by the complainant in consequence of the dismissal", which makes up the amount of the compensatory award, and the compensatory award itself.