Landmark case could see unfair dismissal compensation rise

Posted 31/05/2010

A case which has resulted in a surgeon being awarded compensation for unfair dismissal could have implications for other high earners who feel they have been badly treated.

Michael Edwards was sacked for professional misconduct in 2006, but claimed that his employers did not follow proper procedures during his dismissal.

He took the Chesterfield Royal Hospital NHS Foundation Trust to an employment tribunal, arguing that he may not have been sacked if the regulations had been followed.

Although the General Medical Council dismissed the allegations against Mr Edwards in 2007, the NHS trust refused to pay the £4.3 million compensation he was seeking because this equated to future earnings outside his three-month notice period.

However, the Court of Appeal has rejected this argument, meaning that Mr Edwards is likely be eligible for a substantial sum in compensation.

“The case is of enormous significance for employers, particularly as it dramatically increases the amount of compensation available to individuals who have been wrongfully dismissed,” his legal representative commented.

Unfair dismissal compensation is currently capped at £63,500, but this may now be altered.