Former employee wins unfair dismissal claim against HMRC, award reduced for conduct
A former employee of HMRC succeeded in an unfair dismissal claim, receiving £10,608 by consent, reduced by 35% for contributory conduct.
1 min read · Last updated 18 May 2026
Case details
- #unfair-dismissal
- #compensation-by-consent
- #contributory-conduct
Key facts
- The claimant's complaint of unfair dismissal succeeded.
- Compensation was reduced by 35% due to contributory conduct.
- The claimant was awarded £10,608 in compensation by consent.
- The recoupment regulations did not apply.
Timeline
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Hearing day 1
Substantive hearing of the unfair dismissal claim.
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Hearing day 2 and judgment
The tribunal found the claimant unfairly dismissed and awarded £10,608 by consent, with a 35% reduction for contributory conduct.
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Judgment sent to parties
Written judgment sent to the parties.
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Claimant raised possibility of reconsideration
Claimant emailed about reconsideration, citing unanticipated loss.
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Application for reconsideration
Claimant formally applied for reconsideration, but out of time.
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Reconsideration refused
Employment Judge Livesey refused the application as it had no reasonable prospect of success.
The legal issue
The tribunal had to decide whether the claimant was unfairly dismissed and, if so, what compensation should be awarded, including any reduction for contributory conduct.
The outcome
The tribunal upheld the claimant's complaint of unfair dismissal. The compensation was agreed by consent at £10,608, but reduced by 35% due to the claimant's contributory conduct. The recoupment regulations did not apply.
- Total compensation: £10,608
- Reduction for contributory conduct: 35%
Lessons & takeaways
- If you contributed to your own dismissal through misconduct or poor performance, any compensation you receive may be reduced by a percentage the tribunal considers just and equitable.
- Agreeing compensation 'by consent' means both parties accept the figure, which can avoid a lengthy hearing on remedy but may limit later challenges.
- Be aware that compensation for unfair dismissal is capped and calculated based on actual financial loss, not the emotional impact of losing your job.
What this case shows
This case demonstrates that even when an employee wins an unfair dismissal claim, their own conduct can significantly reduce the compensation they receive. The former employee, who represented himself, succeeded in proving that HMRC unfairly dismissed him. However, the tribunal found that his own actions contributed to the dismissal and reduced his award by 35%.
What HMRC could have done differently
HMRC, represented by counsel, agreed to the compensation figure by consent. This suggests that the employer recognised the unfairness of the dismissal but also wanted to avoid a full remedy hearing. By agreeing to a reduced figure, HMRC limited its exposure while still accepting liability.
Why this matters
For employees, this case is a reminder that unfair dismissal compensation is not automatic or full. The tribunal will consider whether your own conduct contributed to the dismissal and may reduce the award accordingly. It also shows that agreeing compensation by consent can bring finality, but you cannot later ask for more if your losses turn out to be greater than expected.
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