Where a default judgment is issued that determines only liability, an employment tribunal cannot effectively reconsider liability issues at a subsequent remedies hearing. The default judgment will have established liability as the claimant has alleged, and this is not now open to challenge; that liability must be the basis of compensation calculations

Homosexual Mr Eaton was a manager at a gay nightclub called Bent. When Mr Spencer and his partners took the club over they renamed it and promoted it as a heterosexual venue; Mr Eaton's employment transferred to Wiggles under TUPE. Mr Eaton was dismissed and claimed unfair dismissal and discrimination on grounds of sexual orientation. No Response was lodged and a default judgment was issued by the Employment Tribunal in Mr Eaton's favour under ET Rules 2004 Rule 8 [1]. Mr Spence and his partners did not attend the remedies hearing.