£4.3 million compensation for an 'unfair' dismissal

Well, this is not strictly true but it got your attention didn't it? It's a reference to the Court of Appeal decision in Edwards v Chesterfield Royal Hospital NHS Trust and it will be of particular concern for employers with contractual disciplinary and grievance procedures - most notably the NHS and other public sector employers.

Mr Edwards, a consultant trauma and orthopaedic surgeon at Chesterfield Royal Hospital was summarily dismissed from his employment because of "gross professional and personal misconduct". He was unable to find a permanent post elsewhere because of the findings against him. The Investigating Committee of the General Medical Council later dismissed a complaint against him based on the same allegations.

Mr Edwards has brought a claim for £4.3 million compensation arising out of his dismissal. But isn't the current maximum unfair dismissal award £76,700, I hear you say. Well yes it is, but Mr Edwards' claim is not for unfair dismissal but for damages for breach of contract.

Wragge & Co's employment experts explain further.