“Wrongful dismissal claims causing psychiatric injury cannot be pursued in tort courts.”
Two employees of Magnox Electric claimed they suffered psychiatric injury due to the manner of their dismissal. They brought claims in the High Court for breach of the implied term of trust and confidence, seeking damages for psychiatric harm caused by their employer's conduct during the dismissal process.
Whether employees could bring claims in the ordinary courts for psychiatric injury caused by breach of the implied term of trust and confidence in the manner of their dismissal, or whether such claims fell within the exclusive jurisdiction of employment tribunals.
The House of Lords held that claims arising from the dismissal itself fell within the exclusive jurisdiction of employment tribunals. However, claims for breach of trust and confidence arising from conduct prior to dismissal could be pursued in the ordinary courts.
This case clarified the jurisdictional boundaries between employment tribunals and ordinary courts. It prevents employees from forum shopping by bringing dismissal-related claims in tort, ensuring the statutory employment protection scheme remains coherent.
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OSCOLA Citation
Eastwood v Magnox Electric plc [2004] UKHL 35, [2005] 1 AC 503
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