Also known as Polkey reduction, after the House of Lords decision in Polkey v AE Dayton Services Ltd [1987] IRLR 503. A reduction in the compensatory award made to an employee in a successful claim for unfair dismissal to reflect the likelihood that there would have been a fair dismissal in any event. It may be expressed as a percentage reduction (up to 100% in some cases) or as a cap on future loss. In Polkey, the compensatory award was reduced to reflect the fact that certain procedural steps that had not been taken by the employer in implementing a redundancy dismissal would not have made a difference to the decision to dismiss.
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