Court rules that contractual damages cannot be recovered for manner of dismissal losses
In an important decision, the Supreme Court has ruled that an employee cannot bring a breach of contract claim for losses flowing from the manner of dismissal even where the dismissal is in breach of an express contractual disciplinary procedure. The statutory unfair dismissal regime provides for compensation in these circumstances, and the ordinary principles that govern breach of contract damages do not apply. Contractual damages can only be recovered where the breach precedes and is independent of the dismissal process (Edwards v Chesterfield Royal Hospital NHS Foundation Trust; Botham v Ministry of Defence).
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