In Dunnachie v Kingston-upon-Hull City Council, the House of Lords holds that Lord Hoffman's comments in Johnson were obiter and, therefore, did not prevent the House of Lords from finding that unfair dismissal compensation should be restricted to economic losses only.
In Hardy v Polk (Leeds) Ltd [2004] IRLR 420 EAT, the Employment Appeal Tribunal held that an employee who is dismissed without notice or pay in lieu of notice is under a duty to mitigate his or her loss in respect of the notice period, and that earnings received from another employer during the (nominal) notice period must be offset against the compensatory award.
The second of our two-part feature on noteworthy decisions in practice and procedure at the employment tribunals and EAT looks at bias, the right to a fair hearing and a range of other issues.
In Dunnachie v Kingston upon Hull City Council, the Court of Appeal holds that the comments by Lord Hoffmann in Johnson v Unisys, to the effect that the interpretation of (what is now) s.123 of the Employment Rights Act 1996 given in Norton Tool Co Ltd v Tewson was too narrow in limiting unfair dismissal compensation to economic losses, were obiter and did not bind the Court in the present case.