R Reids Electrical Distribution Ltd v Coulson

EMPLOYMENT APPEAL TRIBUNAL 58 VICTORIA EMBANKMENT, LONDON EC4Y 0DS At the Tribunal On 3 November 1998 Before

JUDGE PETER CLARK : These are appeals by the employer, R Reids Electrical Distribution Ltd, against first, the substantive decision of the Lincoln Employment Tribunal sitting on 15th December 1997, upholding the employee, Ms Coulson's complaint of unfair dismissal and awarding her compensation of �4,895.63 ["the first decision"]. That decision was promulgated with extended reasons on 8th January 1998. Secondly, against that same tribunal's decision on review, promulgated with extended reasons on 14th May 1998, following a hearing held on 20th April 1998 ["the review decision"].

It was submitted by Mr Brown, who represented the appellant below, that the first job with Nugent broke the chain of causation. The tribunal was referred to four decision of this tribunal namely:

from which cases it derived the principle that the chain of causation may be broken by new permanent employment, or new employment which was expected to be permanent. It found that the Nugent job did not break the chain of causation. The tribunal accepted Ms Coulson's evidence that the new employer wanted it on a trial basis and asked her to "give it a whirl" doing that job. On later reflection those employers concluded that they could not afford it. She was therefore in that job for five weeks.

Accordingly, the tribunal assessed her loss to the date of the first hearing, based on a net loss figure with the appellant of �236.25 per week, giving credit for monies earned during that period, together with a future loss period of 39 weeks at the continuing partial loss rate of �5,000 p.a. gross, netted down for tax and National Insurance. After adding awards for loss of use of a company car and loss of statutory rights, and reducing the total sum by one-third in respect of the so-called Polkey deduction, they arrived at a final compensatory award of �4,895.53.