Secretary of State for Employment v Wilson

JurisdictionUK Non-devolved
Date1977
Year1977
CourtEmployment Appeal Tribunal
[EMPLOYMENT APPEAL TRIBUNAL] SECRETARY OF STATE FOR EMPLOYMENT v. WILSON 1977 Oct 14; Nov. 10 Phillips J., Mrs. D. Lancaster and Mr. L. D. Cowan

Employment - Employer's insolvency - Debt due to employee - Dismissal without notice - Application to Secretary of State for four weeks' pay in lieu of notice - Whether credit to be given for moneys earned by employee during notice period - Employment Protection Act 1975 (c. 71), s. 64

The employee was dismissed without notice by his employers, but started new employment almost immediately. The original employers went into liquidation and the employee claimed, pursuant to section 64 of the Employment Protection Act 1975, F1 payment for the four weeks' notice to which he was entitled under the Contracts of Employment Act 1972 from the Secretary of State for Employment. The industrial tribunal rejected the Secretary of State's submission that the employee was not entitled to any payment as he had obtained another job in the notice period and had suffered no financial loss, and found that the employee was not obliged to give credit for money earned in the notice period. The tribunal ordered the Secretary of State to make the appropriate payment.

On appeal by the Secretary of State: —

Held, allowing the appeal, that the general intention shown by the Contracts of Employment Act 1972 was to incorporate the provisions of that Act into the contract of employment and for an employee to enforce his right by suing upon his contract; that by section 3 of the Act an employee's remedy against an employer's failure to give notice was to bring a claim for damages for breach of contract, and that in such a case his damages would have to be reduced by his earnings during the notice period; that, accordingly, since the rights of an employee against the Secretary of State could not be better than his rights against an employer, the employee was bound to bring into account earnings during the notice period, and as the employee had in the result suffered no loss, the Secretary of State was not bound to make any payment.

The following case is referred to in the judgment:

Norton Tool Co. Ltd. v. Tewson [1972] I.C.R. 501; [1973] 1 W.L.R. 45; [1973] 1 All E.R. 183, N.I.R.C.

The following additional case was cited in argument:

Treganowan v. Robert Knee & Co. Ltd. [1975] I.C.R. 405.

Appeal from a decision of an industrial tribunal sitting at Manchester.

The Secretary of State for Employment appealed from a decision of the industrial tribunal on February 16, 1977, ordering him to pay Alfred Wilson, the employee, £240, the debt owed to him by his previous employers, Evans Chimneys Ltd., who had dismissed him without the notice to which he was entitled under the Contracts of Employment Act 1972, and who had subsequently gone into liquidation. The Secretary of State appealed on the ground that the industrial tribunal had erred in law in holding that money earned elsewhere by the employee in the notice period need not be taken into account when assessing the amount of compensation due.

The facts are stated in the judgment.

Peter Scott for the Secretary of State.

The employee did not appear and was not represented.

Cur. adv. vult.

November 10. Phillips J. read the following judgment of the appeal tribunal. Mr. Wilson, the employee, was dismissed by his employers, Evans Chimneys Ltd. on March 19, 1976, without notice. On March 22, 1976, a Monday, he entered the employment of Fleetwood Steel Fabrications Ltd. on exactly the same terms, except that for the purpose of the Redundancy Payments Act 1965, the Contracts of Employment Act 1972, etc. his employment ranked as a new employment with the result...

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15 cases
  • Westwood v Secretary of State for Employment
    • United Kingdom
    • Court of Appeal (Civil Division)
    • 28 June 1983
    ...mitigating the damages recoverable by the employee for loss of earnings in that part of the period of notice." 27 In The Secretary of State for Employment v. Wilson, 1973 I.C.R. 200, it was held that the liability of the employer for failure to give notice was a contractual one and subject ......
  • Westwood v Secretary of State for Employment
    • United Kingdom
    • House of Lords
    • 15 March 1984
    ...were, in principle, deductible in mitigation of damages for loss of earnings flowing from a wrongful dismissal, following Secretary of State for Employment v. Wilson [1978] 1 W.L.R. 568 and Parsons v. B.N.M. Laboratories Ltd. [1964] 1 Q.B. 95. However, in consequence of the premature term......
  • Westwood v Secretary of State for Employment
    • United Kingdom
    • Employment Appeal Tribunal
    • Invalid date
  • Secretary of State for Employment v Jobling
    • United Kingdom
    • Employment Appeal Tribunal
    • Invalid date
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