In Eastwood and another v Magnox Electric plc; McCabe v Cornwall County Council and others, the House of Lords holds that, in cases where psychiatric injury is alleged to have been caused by acts of the employer committed prior to, and separately from the act of dismissal itself, a cause of action will exist at common law for damages.
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.