Voith Turbo Ltd v Stowe, EAT
13 December 2004
Mr Stowe was made redundant after 19 years’ service. He received three months’ pay in lieu of notice but found other work (earning less) one week later. The tribunal found that he had been unfairly dismissed and suffered racial discrimination. It ruled that his earnings during the notice period should not be deducted from the award.
The tribunal followed Norton Tool Co Ltd v Tewson (1972) IRLR 86.
Voith Turbo appealed, arguing that the recent Employment Appeal Tribunal (EAT) case of Hardy v Polk (Leeds) Ltd (2004) IRLR 420 was the correct view of the assessment of loss. But the EAT upheld the original decision that an unfairly dismissed employee need not give credit for earnings in new employment during a period when notice pay was made by his former employer.
Norton Tool Co Ltd v Tewson (1972) was applied and the more recent case of Hardy v Polk (Leeds) Ltd (2004) was not followed, distinguishing it on the facts. The case will go back to the employment tribunal for further submissions about pension loss.