Important compensatory award decision reported in ICR and IRLR  

11/09/2006

Knapton v ECC Card Clothing Ltd reported at [2006] ICR 1084 and [2006] IRLR 756 EAT

This Appeal was heard on 7th March 2006 in the EAT (HHJ McMullen presiding). It is an important decision dealing with a common problem for tribunals when assessing the compensatory award.

Knapton v ECC Card Clothing Ltd (UKEAT/0664/05/MAA) is authority for the proposition that:

  • if an employee chooses to draw his pension early, following dismissal, the value of his pension benefits should not be deducted from any compensatory award;
  • if his remuneration package includes life insurance, the compensatory award should not include compensation for the cost of purchasing that insurance, to the date of the hearing, unless the employee actually purchased alternative insurance cover. Assuming the employee has not died, he has suffered no financial loss by being uninsured.

Whilst this decision was only dealing with unfair dismissal compensatory awards, the EAT's reasoning makes it clear that the principles will similarly apply to discrimination awards.

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Paul Draycott appeared for the claimant, instructed by Thompsons Solicitors .