Supreme Court Gives Judgment In Edwards v Chesterfield

On 14 December 2011 the UK Supreme Court issued its decision in the consolidated appeals in Edwards v Chesterfield Royal Hospital NHS Foundation Trust and Botham (FC) v Ministry of Defence [2011] UKSC 58. The issue was whether damages for future losses could be awarded arising from the unfair manner of dismissal in breach of an express term of an employment contract. If successful, this would expose employers to damages claims far in excess of the usual measure of loss, losses suffered in respect of their notice periods. Further, such a decision would enable employees to bring high-value claims for future losses outside the legislative framework designed to provide the exclusive jurisdiction for such employment claims (i.e. in particular, unfair dismissal).

The UK Supreme Court held that employees may not recover damages in civil courts for loss suffered as a result of a breach of their contract of employment in relation to the manner of their dismissal, unless the loss can be said to precede and be independent of the dismissal. The position therefore remains as it was; a qualifying employee has unfair dismissal rights through which to pursue future losses in the Employment Tribunal, limited to the cap imposed on awards by legislation. Under the common law a claimant may claim for damages, limited to damages had the contract of employment been performed lawfully (i.e. the...