Litigation Letter
No Damages for Unfair Manner of Dismissal
Johnson v Unisys Ltd (H of L TLR 23 March)
In the light of the statutory scheme laid down by Parliament providing employees with compensation for unfair dismissal, it
would be an improper exercise of their judicial functions for the courts to construct a common law remedy providing damages
for the unfair manner of the dismissal. The employees complaint of unfair dismissal had been upheld by an industrial (employment)
tribunal and he had been awarded the statutory maximum compensation. He had then commenced proceedings against the employers
for damages for wrongful dismissal, claiming he had suffered a mental breakdown and was unable to work because of the manner
in which he had been dismissed, which had been in breach of an implied term of the contract of employment. The court upheld
the striking out of his statement of claim as disclosing no reasonable cause of action.