Eastwood v Magnox Electric plc [2004] UKHL 35 is a UK labour law case concerning damages for wrongful dismissal, which were held to not be limited if a breach of contract occurs during the performance of the contract, rather than at the point of termination.
The case was joined with Mr McCabe's claim, who had succeeded in an unfair dismissal claim on grounds that indecent behaviour towards school pupils was never demonstrated, he was not informed of the allegations for 5 months, and the council failed to investigate his case, and then he claimed further for psychiatric illness.
Auld LJ, in McCabe, held that Gogay was distinguishable from Johnson because in Gogay damages related to dismissal but suspension ‘which manifestly contemplated the continuation of the employment relationship’.
And ‘should the line be drawn between dismissal caught by legislation and conduct prior to it causing injury compensatable in damages at common law.’ The House of Lords awarded remedies for the employees in both cases.
‘This situation merits urgent attention by the government and legislature.’ Lord Steyn noted that the more outrageous the breach, the less likely it is that the employee can affirm the contract.