C.ÌýÌýÌýÌý The Basic Award and Credit for Payments made by the Employer on termination
It is now well established that a payment by the employer on termination will reduce the compensatory award and any additional award (discussed below).
The question of set off against liability for the basic award has been more problematic. However, it is now settled that a payment made which is expressed to be in settlement of liability for unfair dismissal compensation will be capable of being set off also against liability for the basic award.
Where the payment is expressly made by reference to liability for unfair dismissal compensation, then credit must be given in favour of the employer. In Chelsea Football Club and Athletic Co Ltd v Heath [1981] IRLR 73, [1981] ICR 323 the EAT