Regan v RPH Heating Limited (trading as Florida Pools and Spas): [2023] TRE 195

The case revolves around the Claimant’s unfair and wrongful dismissal by the Respondent, following which the Tribunal had to determine the appropriate compensation. The judgment, delivered on 12 July 2024, concluded that the dismissal was both unfair and wrongful, and the current proceedings focus on the quantum of compensation.

Key Issues:

Wrongful Dismissal: The Claimant was dismissed without receiving the required 10 weeks’ notice as per the Employment (Jersey) Law 2003. The Tribunal calculated the Claimant’s weekly wage at £676.44, resulting in a total of £6,764 in damages for the 10-week notice period.

Final Pay Discrepancies: The Respondent paid the Claimant £4,751.33 post-termination, of which £1,996.33 was for final salary. However, a dispute arose over the remaining £2,755, which the Respondent claimed was calculated based on 4 weeks’ gross salary minus a £475 holiday pay overpayment. The Claimant disputed this, stating there was no holiday pay overpayment and asserting that this amount should count toward unfair dismissal compensation, not as payment in lieu of notice. The Tribunal declined to make any finding on the holiday pay issue, as no formal claims were made regarding it.

Mitigation of Loss: The Tribunal considered whether the Claimant had taken reasonable steps to mitigate his loss by seeking alternative employment. Evidence provided showed the Claimant made reasonable efforts but was unsuccessful in securing a job during the 10-week period. The Respondent failed to provide evidence to dispute this, and no reduction in damages was made on this basis.

Unfair Dismissal: In determining compensation for unfair dismissal, the Tribunal applied Article 77F of the Employment (Jersey) Law 2003. The Claimant was entitled to compensation amounting to 26 weeks’ wages (£17,587), but several factors warranted a reduction.

The “Out of Air Incident”: The Tribunal found that the Claimant’s conduct, particularly his “horseplay” involving a colleague’s compressed air during a training exercise, contributed to the dismissal. Although this incident occurred more than a year before the dismissal, it played a significant role in the termination discussions. Based on this conduct, the Tribunal considered a 30% reduction in the compensation for unfair dismissal to be just and equitable. This demonstrates that an employee’s conduct, even if it predates the dismissal by a significant amount of time, can nevertheless impact the amount of compensation awarded if it can be shown that such historic conduct contributed to the dismissal.

Post-Termination Payment: The Claimant acknowledged that the post-termination payment of £2,755 should reduce the final compensation for unfair dismissal. After applying the 30% reduction to the full compensation of £17,587, the final amount was reduced to £12,311. Subtracting the £2,755 post-termination payment, the total award for unfair dismissal was £9,556.

Conclusion: The Tribunal ordered the Respondent to pay the Claimant £6,764 for wrongful dismissal and £9,556 for unfair dismissal, accounting for all adjustments and deductions, bringing the total compensation to £16,320.

Full Judgement Here and Here