The Employment Appeal Tribunal’s decision in Kirkland v Caroline Mason trading as Hawthorn Education Services [2026] EAT 108 raises important questions about compensation, the obligation to find alternative work and the treatment of employees who have already suffered an unlawful dismissal.
There is something rather perverse about the way compensation can work in unfair dismissal cases. An employer dismisses someone without following a proper procedure. The employee takes the matter to an Employment Tribunal and establishes that the dismissal was unlawful. You might think the next question would be how much the employer should pay for the financial losses it has caused.
It isn’t always that simple.
Instead, attention can shift towards the dismissed worker. Did they apply for enough jobs? Could they have accepted different working hours? Were they too selective about the positions they considered? Did they spend too much time pursuing other interests when they should have been looking for employment?
These are legitimate questions in some circumstances. Employment law requires people who have suffered financial losses to take reasonable steps to reduce them. But there is a considerable difference between expecting someone to act reasonably and demanding that they reorganise their life to protect their former employer from the financial consequences of an unlawful dismissal.
The Employment Appeal Tribunal’s decision in Kirkland v Caroline Mason trading as Hawthorn Education Services [2026] EAT 108 examines that distinction. It also considers how tribunals should compensate workers for time spent preparing proceedings when the other side has behaved unreasonably.
Both issues have practical implications for trade union representatives.
A Dismissal Without a Proper Procedure
Patricia Kirkland worked as a part-time administration manager for Hawthorn Education Services, a business providing specialist education to children outside mainstream schooling. She had worked there since February 2019, completing 13.75 hours a week and earning an average of £652.91 gross per month.
In August 2022, she was summarily dismissed following allegations of misconduct. There had been no investigation, no proper disciplinary process and no warning that the meeting she attended might result in her dismissal. She received no written dismissal decision and was not offered a right of appeal.
The employer even disputed whether she was an employee, arguing that she was self-employed. That argument failed.
The Employment Tribunal found that Kirkland was an employee and that her dismissal was unfair. It also declined to reduce her compensation on grounds of contributory fault or on the basis that she might have been dismissed anyway had a fair procedure been followed.
The employer had failed to follow basic employment procedures and had dismissed someone unfairly. Kirkland was entitled to compensation.
She claimed £12,405.29 in lost earnings, covering approximately 19 months between her dismissal and March 2024.
However, her employer argued that she had failed to make sufficient efforts to find alternative employment.
Kirkland had made six job applications over approximately twelve months. She was 64 at the time of the tribunal proceedings and referred to her age, health difficulties and the absence of an employment reference as obstacles to finding suitable work.
She was also developing a short-term property rental business, which she had been establishing alongside her part-time employment. Following her dismissal, she spent more time building that business and concentrated on finding employment that would fit around it.
The employer challenged this approach. It argued that she should have applied for more positions and produced advertisements for 14 jobs that it suggested were potentially suitable.
One opportunity involved working for a solicitors’ firm. Kirkland had initially pursued the position because she understood it offered flexible part-time employment. However, when she discovered that attendance would be required on all five working days, she explained that the arrangement would not suit her circumstances. She was not subsequently interviewed.
The original tribunal was critical of her approach. It regarded her as capable, professional and highly employable. It concluded that she had concentrated on expanding her property business rather than making sufficient efforts to find replacement employment.
Instead of awarding the 19 months of lost earnings claimed, it allowed just six months, amounting to £3,917.46.
That was a substantial reduction. More importantly, the Employment Appeal Tribunal found that the original tribunal had applied the wrong legal test.
Who Has to Prove a Failure to Mitigate?
The central issue was the burden of proof.
The original tribunal had stated:
I am not satisfied that the Claimant has mitigated her loss.
Those words were important because they suggested that the tribunal expected Kirkland to prove she had taken reasonable steps to reduce her losses.
But that is not how the law works.
Where an employer argues that compensation should be reduced because a dismissed worker failed to mitigate their loss, the burden is on the employer to prove that the worker acted unreasonably.
This principle has been established for many years. The Court of Appeal addressed it in Wilding v British Telecommunications plc [2002] EWCA Civ 349, and it was examined again in Cooper Contracting Ltd v Lindsey UKEAT/0184/15.
In Cooper Contracting, the Employment Appeal Tribunal drew an important distinction between acting reasonably and not acting unreasonably.
It may have been reasonable for someone to apply for more jobs, accept different employment or pursue opportunities they ultimately rejected. That does not necessarily mean their actual decisions were unreasonable.
People do not always make the choices that a tribunal, looking back months or years later, considers most sensible. They may have good reasons for acting differently. The law allows for that.
Judge Mathew Gullick KC found that the original tribunal had failed to make a positive finding that Kirkland had acted unreasonably. It had considered her circumstances and expressed dissatisfaction with her attempts to find work, but it had not properly addressed whether the employer had proved an unreasonable failure to mitigate.
Nor had it correctly applied the burden of proof.
This is far more than a technical point.
Imagine a worker who has spent years in a part-time job and organised other commitments around those hours. After being unfairly dismissed, they are told that they should have applied for employment involving considerably less flexibility, longer journeys or attendance on more days.
It might have been sensible to consider those jobs. Depending on the circumstances, refusing them might even have been unreasonable. But the worker is not automatically required to abandon every existing commitment because their employer has unlawfully dismissed them.
In Kirkland’s case, the property rental business complicated matters. There was evidence that she had deliberately concentrated on finding work that would fit around its development. The employer was entitled to argue that this limited her efforts to replace her lost wages.
What it could not do was simply assume that those choices justified reducing compensation. It had to prove that her conduct was unreasonable.
The test is objective, but the worker’s circumstances, wishes and reasons for acting as they did are relevant.
An employer may believe that a dismissed worker could have done more. That is not enough.
One of the most useful principles in Cooper Contracting, discussed in the Kirkland judgment, is the warning against imposing too demanding a standard on someone who has already suffered a legal wrong.
After all, the worker would not have been in that position had the employer acted lawfully in the first place.
That does not excuse unreasonable conduct by a claimant. It does mean that the tribunal must ask the right question and place the burden of proof where the law says it belongs.
Job Advertisements Do Not Prove a Worker Could Have Found Employment
There is a familiar tactic in disputes over compensation. The employer produces a collection of job advertisements and suggests that, because vacancies existed, the claimant could have found alternative employment.
It sounds convincing until you examine the evidence.
A job advertisement is not a job offer.
Was the position actually suitable? Did it require qualifications or experience the claimant did not possess? Were the hours compatible with their circumstances? Was the location practical? How many other people might have applied?
And, most importantly, was the claimant unreasonable in failing to pursue it?
Kirkland’s employer had identified 14 advertised positions, but had produced no witness evidence at the remedy hearing. The advertisements were material the tribunal could consider. They did not, by themselves, prove that Kirkland had unreasonably failed to mitigate her losses.
For representatives, this is an area where careful preparation can make a difference.
If an employer produces a list of vacancies, examine them individually. Ask whether the jobs were genuinely suitable and whether the claimant had a realistic prospect of securing them. Do not allow the existence of advertisements to be treated as proof that employment was readily available.
Workers should also keep proper records of their efforts to find alternative employment. Applications, interviews, recruitment agency contacts and explanations for rejecting unsuitable vacancies can all help establish what actually happened.
Although the employer bears the legal burden, it makes sense for claimants to have evidence supporting their account.
Where members have health problems, caring responsibilities or other commitments affecting the work they can undertake, these should be explained and, where appropriate, supported by evidence.
Nobody needs to demonstrate that every decision was perfect. But being able to explain those decisions is important.
There is also a danger in allowing assumptions about employability to replace evidence. The original tribunal considered Kirkland capable, professional and an attractive prospect for administrative work. Those assessments may have been entirely fair. But being a capable worker is not the same as being guaranteed another job.
Nor does finding someone personally impressive establish that they behaved unreasonably by not securing employment sooner.
The Other Battle: Compensation for Preparation Time
Kirkland’s appeal raised a second issue that deserves more attention.
Employment litigation can be extraordinarily demanding. There are claims to prepare, documents to examine, correspondence to answer, witnesses to organise and deadlines to meet. A supposedly straightforward unfair dismissal case can become a prolonged exercise.
This is particularly true when an employer or its representatives conduct proceedings unreasonably.
Kirkland had represented herself before the original tribunal. She complained about the way the employer had defended the claim and submitted a detailed chronology explaining the additional work she believed that conduct had caused.
She sought a preparation time order covering 155 hours.
The tribunal accepted that the employer had acted vexatiously and unreasonably in defending the proceedings. It was particularly critical of aspects of the handling of the case and the apparent failure to engage in negotiations following an earlier hearing.
However, the tribunal also criticised Kirkland’s own approach. It considered that she had spent unnecessary time dealing with minor details and preparing excessively large bundles of documents.
That criticism was something the tribunal was entitled to take into account. Anyone who has represented members knows how easily a case can become buried beneath correspondence, duplicated material and arguments that have little bearing on the actual dispute.
One of the most valuable things an experienced representative can do is identify what really matters and concentrate on it.
But the tribunal then awarded Kirkland £1,000 without explaining how it had calculated that amount.
Her claim involved 155 hours at the applicable rate of £43 an hour, representing more than £6,500 if allowed in full. The tribunal had therefore reduced her claim substantially.
It was entitled to reject preparation time that it considered unreasonable or disproportionate. What it could not do was simply choose a figure without following the calculation required by the rules.
At the time of the proceedings, Rule 79 of the Employment Tribunals Rules of Procedure 2013 required the tribunal to assess the number of reasonable and proportionate preparation hours and multiply that number by the prescribed hourly rate.
Judge Gullick found that the original tribunal had failed to do this.
It had effectively selected a round sum rather than identifying how many hours should properly be allowed.
The EAT recognised that a tribunal does not have to examine every minute of preparation individually. Some estimation is permissible. But there must still be an assessment of the hours allowed, supported by adequate reasoning.
The employer suggested that the £1,000 figure could be interpreted as representing approximately 23.26 hours at £43 an hour.
That argument was rejected. There was nothing in the original decision to suggest that the tribunal had actually undertaken such a calculation.
The rules have since changed, but the principle remains. Under Rule 77 of the Employment Tribunal Procedure Rules 2024, the tribunal must assess the reasonable and proportionate preparation time and apply the prescribed hourly rate. For preparation undertaken in the year beginning 6 April 2026, that rate is £46 an hour.
Preparation time orders are not automatically available simply because a worker wins a case. The legal grounds for making such an order must be established. These include unreasonable conduct of proceedings or a claim or response having no reasonable prospect of success.
A preparation time order is concerned with qualifying preparation undertaken without legal representation. Under the current rules, assistance from a non-lawyer representative does not, of itself, prevent such an order, although a preparation time order and a costs order cannot both be made in favour of the same party in the same proceedings.
For union representatives, the practical point is to keep a proper record when an employer’s unreasonable conduct causes additional work.
Identify what happened, what preparation became necessary and how much time was reasonably spent dealing with it. An application supported by a chronology and records of preparation is considerably stronger than a general complaint that the employer made the case difficult.
And if a tribunal accepts that an order is appropriate, it must then calculate the amount according to the rules.
Winning the Case Should Mean Something
The Employment Appeal Tribunal allowed Kirkland’s appeal on both grounds.
The compensatory award was set aside because the tribunal had failed to apply the correct approach to mitigation. The preparation time award was also set aside because it had not been calculated in accordance with the rules.
Both matters were sent back to a different Employment Judge for reconsideration.
The existing £500 award for loss of statutory rights was preserved, as was the finding that making a preparation time order was appropriate. The 25 per cent uplift for failure to comply with the ACAS Code of Practice would also have to be recalculated if the compensatory award changed. The employer had not challenged the 25 per cent rate itself.
Kirkland had not automatically secured the full compensation she originally claimed. The new tribunal would still have to consider the evidence and determine the appropriate amounts.
Her success was in establishing that the original decisions had been reached through an incorrect application of the law.
It is also worth noting that Kirkland was assisted in her appeal by Patricia Leonard of the Free Representation Unit, who appeared without charge. Without that assistance, an unrepresented claimant might have found it considerably harder to identify and pursue the legal errors involved.
The case illustrates why representatives need to be familiar with the authorities governing compensation, rather than relying entirely on general arguments about fairness.
The original tribunal had not been directed to the relevant authorities on mitigation. The employer’s submissions had emphasised the need for a just and equitable award without properly addressing the established burden of proof.
Section 123(1) of the Employment Rights Act 1996 does require a tribunal to determine what compensation is just and equitable. But section 123(4) requires it to apply the common law rules on mitigation. The general principle of fairness cannot be used to avoid the particular legal test.
That is an argument worth making whenever an employer seeks to reduce compensation because a worker supposedly failed to find alternative employment.
There is a broader concern here, too.
For a dismissed worker, bringing a tribunal claim can involve considerable financial and emotional strain. Employment may have been lost suddenly. Savings may be depleted. The worker may be trying to rebuild their working life while dealing with proceedings that continue for months or years.
Yet after proving that the employer acted unlawfully, the claimant may find themselves answering questions about every decision they have made since losing their job.
Why did they not apply for more vacancies? Why did they not accept different hours? Why did they concentrate on another source of income? Why did they not find work sooner?
Some scrutiny is inevitable. Compensation should reflect actual losses, and workers cannot disregard reasonable opportunities to reduce them.
But we should not lose sight of who created the problem.
Kirkland had worked part-time for several years. She was dismissed without investigation or procedure, and the original tribunal found that she had done nothing to bring the dismissal upon herself. She then had to pursue legal proceedings to establish rights that her employer had denied.
When the question of compensation arose, it was the employer’s responsibility to prove that she had acted unreasonably in failing to reduce her losses.
The EAT did not decide that all her choices were reasonable. It decided that the tribunal had failed to ask the correct question. That distinction is important, and it leaves the substantive issue to be determined properly at the rehearing.
For trade union representatives, Kirkland provides a useful authority to cite when employers argue that a claimant should have applied for more jobs, accepted different working arrangements or made greater efforts to reduce their losses.
It also reinforces the need to challenge inadequately reasoned preparation time awards.
Nobody disputes that dismissed workers should make reasonable efforts to find alternative employment. But there is something fundamentally wrong when an employer can dispense with proper procedures, dismiss a worker unlawfully and then seek to escape much of the financial responsibility by arguing that the worker should have organised their life differently afterwards.
The law places the burden of proving an unreasonable failure to mitigate on the employer.
It is a protection worth knowing about and, when necessary, fighting to enforce.
Report from Pat Harrington
Case: Kirkland v Caroline Mason trading as Hawthorn Education Services [2026] EAT 108.
Decision: Employment Appeal Tribunal, Judge Mathew Gullick KC, 9 July 2026. Published 18 September 2026.
Full judgment: Read the judgment on GOV.UK
Relevant authorities: Wilding v British Telecommunications plc [2002] EWCA Civ 349; Cooper Contracting Ltd v Lindsey UKEAT/0184/15.
Legislation: Employment Rights Act 1996, section 123; Employment Tribunal Procedure Rules 2024, Rules 73–77.
