The claimant argued that she had been advised and it had been agreed by HR that if she left her post on the grounds of inefficiency that she would receive a compensation package of £25,000. The respondent contended that she had been fairly dismissed on the ground of incapability arising from ill health. The claimant was absent from work for considerable periods for an array of health problems and received a final written warning noting that a failure to demonstrate an immediate and sustained improvement in her attendance during the two year warning period could ultimately lead to her dismissal.
The claimant was incorrectly informed that she would be entitled to a lump sum compensation payment of £25,605.76 upon dismissal when in fact the true sum was £1,577.07. She argued that her mistaken belief in relation to the financial sum affected her acceptance of leaving, but the respondent contended that she was ultimately dismissed based on absenteeism irrespective of any compensation entitlement. The tribunal dismissed the claims and held that the decision to dismiss was a fair and reasonable and the unfortunate miscalculation had no bearing on this decision.
Practical Lessons
The tribunal recognised that the claimant was understandably devastated at the realisation that her compensation entitlement was grossly miscalculated. However, it held that her dismissal and the payment were two separate matters and the claimant had no entitlement to receive anything other than her contractual entitlement. In other words, a claimant’s only legitimate expectation is to what he/she is entitled as a matter of contract.
The claimant’s argument that she had entered into a ‘contract’ with the respondent regarding the payment of the £25,605.76 which they had breached was ill-conceived. The employer otherwise displayed full compliance with statutory procedures and had fair grounds for dismissal which ensured it was strongly placed to fight the claims.
This case review was written by John Taggart BL. NI Tribunal decisions are available on the OITFET website:
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