Injury to feeling damages for unfair dismissal now NOT possible.

Just when we thought it was safe to advise:

On 14th July the House of Lords issued its judgement in the case of Dunnachie v Kinston upon Hull City Council. This is the on / off question of whether damages for injury to feelings are recoverable in unfair dismissal claims. The House of Lords Judge Lord Steyn (with the other judges agreeing) held that damages for non-economic loss are not recoverable for unfair dismissal.

An injury to feeling award was particularly important in a case where the dismissed employee had not suffered much financial loss or at least not up to the maximum award of £55,000. In such cases, the employee could add a claim in respect of the alleged injury to his/her feelings. This will now not be possible as the House of Lords in this case has determined that s123 of the Employment Rights Act 1996 only allows tribunals to award financial losses.