03 Aug 2011
Shoesmith saga grinds towards conclusion
Helga Breen, partner, employment and pensions:
Sharon Shoesmith, former Director of Children's Services of the London Borough of Haringey, seems likely to be awarded substantial damages following her peremptory sacking in December 2008 by Haringey at the instigation of Ed Balls, then Secretary of State for Education, in the wake of the death of baby Peter Connelly.
In May this year the Court of Appeal decided that that Ms Shoesmith's dismissal was void as a result of procedural unfairness. This week the Department for Education and Haringey were refused leave by the Supreme Court to appeal against this decision, paving the way for Ms Shoesmith to claim damages for loss of income and employment benefits from the date of her dismissal. Her application in the Employment tribunal for compensation for unfair dismissal is also likely to be resumed.
The calculation of damages, which may also include a claim for loss of future employment prospects and reputational damage arising from the stigma caused by her very public sacking, will not be straightforward. The Court of Appeal's finding that her dismissal was void means in effect that she is still employed by Haringey and her loss will continue until such time as she is reinstated in her former post with full back pay, is lawfully dismissed or she agrees to resign.
Reinstatement is inconceivable and no doubt politically unpalatable. It is unlikely that Haringey will be able to dismiss Ms Shoesmith fairly at this stage as any process instigated so long after the event will inevitably be dubbed a charade, even if it involves some form of independent investigation and decision-making. In the circumstances it seems likely that Haringey will be forced to agree a settlement with Ms Shoesmith at or close to the full value of her claim. As a public sector body, however, Haringey may well opt to let the Court decide the amount of Ms Shoesmith's damages claim in the hope that this may dampen down the inevitable negative publicity over exorbitant payoffs to public sector bosses.