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Avoiding the statutory uplift

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[Thanks to Ed McFarlane of EEF for preparing this case summary]

An interesting case...

The EAT has handed down judgment in the case of Tim Arrow & Sons v Olney, which is authority for the proposition that where a Tribunal award includes an uplift, if the respondent pays the claimant a sum to cover the award before Judgement, the uplift is calculated on the outstanding sum due, rather than the total amount of the award.

This case was decided under the Employment Act 2002, it is likely to have application under the 2008 provisions, given the similarity of the uplift provisions in the two Acts. Conversely, where a reduction is made to an award, by the same reasoning, any advance payment offset against an award would be likely to disregarded in any reduction of compensation. The EAT also overturned an award for loss of statutory rights where the dismissal was inevitable.