ACAS Code is not quite the Holy Grail for dismissal procedures

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ACAS Code is not quite the Holy Grail for dismissal procedures

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In Buzolli v Food Partners, the Employment Appeal Tribunal found that an employer’s decision to dismiss was fair even though the dismissal procedure was not fully compliant with the ACAS Code.

Mr Buzolli was a driver for Food Partners Ltd and subject to its disciplinary policy. He was issued with a written warning after failing to attend work due to being under the influence of alcohol. The policy stated that further breaches of misconduct within a 12 month period would result in dismissal. Six months later, Mr Buzolli drove into a bridge causing financial damage. This incident was classed as gross misconduct and following an investigation, Mr Buzolli was dismissed. He brought a claim for unfair dismissal arguing, amongst other complaints, that Food Partners had breached the Acas Code. In particular, that Food Partners had not formally notified Mr Buzolli of the potential consequences of his disciplinary hearing.

The Employment Appeal Tribunal said that even though Food Partners had not followed the Acas Code entirely, Mr Buzolli should have known of the significance of the final warning under the employers’ policy. This judgement should reassure employers that Tribunals are willing to adopt a coherent approach to how disciplinary proceedings are conducted. That said the normal principles of fairness require an employee at risk of dismissal to be told of this in advance of the disciplinary hearing. Employers are well advised to warn of the consequences in disciplinary proceedings.

 

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Employer tries to dismiss employee over a disagreement about money

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Employer tries to dismiss employee over a disagreement about money

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In Handshake Ltd v Summers, the Employment Appeal Tribunal found that a breakdown in trust and confidence between an employer and employee, did not entitle the employer to rely on “some other substantial reason” to dismiss the employee.

Law

In employment law, there are potentially five reasons constituting a fair dismissal. These are (1) conduct; (2) capability; (3) redundancy; (4) illegality; and (5) some other substantial reason. If the employer demonstrates a potentially fair reason, it must then show that it followed a fair procedure and the dismissal was fair in all the circumstances.

Facts

Following a dispute between the parties regarding Mr Summers’ entitlement to company shares, his solicitors wrote a letter to Handshake Ltd stating that Mr Summers had “lost all trust and confidence in his employer”. Handshake Ltd subsequently dismissed Mr Summers arguing there had been an irreparable breakdown in the working relationship. Mr Summers brought a claim for unfair dismissal.

The Employment Appeal Tribunal agreed that Mr Summers had been unfairly dismissed and concluded that the real reason for the dismissal was not a loss of trust and confidence but the “power struggle” relating to Mr Summers’s remuneration. This case highlights to employers that “some other substantial reason” cannot be used as a smokescreen to justify a dismissal that does not fit into one of the other fair reasons for dismissal.

 

 

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