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Pay and benefits

Pay and benefits – single package when calculating unfair dismissal compensation.

When calculating the financial losses arising from unfair dismissal, an Employment Tribunal must look at the benefit package as a whole. It must not base its calculations on the differences between individual elements of the package.

In Aegon UK Corporate Services Limited v Roberts [2009], the Employment Tribunal wrongly gave the Claimant (who had found another job following dismissal) credit for ongoing pension loss because her new pension was inferior to her old one. Overall, her total package had improved. She was not entitled to a compensation payment as she had not suffered any financial loss.


Employment Department

Raj Dhokia: r.dhokia@fglaw.co.uk