Claimant v Atelier Homes Limited (In Compulsory Liquidation)
Outcome
Individual claims
The tribunal found the claimant was unfairly dismissed by the first respondent because the appeal process was fundamentally flawed. The appeal was conducted by the same person (the fifth respondent) who had investigated the allegations, violating basic principles of procedural fairness. Despite finding the reason for dismissal was conduct (a potentially fair reason), the unfair appeal process rendered the dismissal unfair overall.
The claimant was entitled to three months' notice pay under his contract. The first respondent dismissed him without providing notice or payment in lieu. The tribunal awarded damages reflecting the net loss of three months' salary plus car allowance and medical insurance.
The tribunal found the claimant did not make any protected disclosures. The alleged disclosures either lacked sufficient factual content and specificity to constitute 'information' showing criminal offences or legal breaches, or the claimant did not hold a reasonable belief they were in the public interest. The tribunal found many allegations were raised only after suspension, motivated by anger rather than genuine concern.
Because the tribunal found no protected disclosures were made, the detriment claims necessarily failed. Even if disclosures had been made, the tribunal was satisfied all alleged detriments (suspension, removal from servers, dismissal, etc.) were motivated by the third, fourth and fifth respondents' genuine concerns about the claimant's financial management of the companies, not any disclosures.
The first respondent failed to provide the claimant with a written statement of employment particulars as required by statute. The tribunal awarded two weeks' pay (capped at statutory maximum) as compensation for this breach.
Facts
The claimant was managing director and co-founder of Atelier Homes Ltd, a property development company. Following significant cost overruns and financial difficulties, Chinese investors (the third and fourth respondents) who had invested over £1.15 million became concerned about the claimant's financial management. Tensions escalated when they believed he intended to use company funds for personal property purchase. The claimant was suspended in June 2023 and dismissed in August 2023 following a disciplinary process for alleged financial misconduct. The claimant alleged he had made protected disclosures about illegal visa arrangements and company insolvency.
Decision
The tribunal found the unfair dismissal claim succeeded due to a fundamentally flawed appeal process (the investigator also conducted the appeal), but reduced awards by 65% for contributory conduct. The breach of contract claim for notice pay succeeded in full. All whistleblowing claims failed as the tribunal found no protected disclosures were made - alleged concerns were raised only after suspension, motivated by anger rather than genuine public interest. The company also failed to provide written employment particulars.
Practical note
Even where an employer has substantive grounds for dismissal, failure to provide a fair appeal process renders the dismissal unfair, though substantial contributory fault reductions may apply where misconduct is proven.
Award breakdown
Adjustments
Both basic and compensatory awards reduced by 65% due to the claimant's culpable conduct. The tribunal found the claimant actually committed misconduct justifying dismissal, but the unfair appeal process meant the dismissal was procedurally unfair. The reduction reflects that had a fair process been followed, dismissal would likely have occurred within 6 weeks.
Legal authorities cited
Statutes
Case details
- Case number
- 1406257/2023
- Decision date
- 22 October 2025
- Hearing type
- full merits
- Hearing days
- 8
- Classification
- contested
Respondent
- Sector
- construction
- Represented
- No
Employment details
- Role
- Managing Director
- Service
- 4 years
Claimant representation
- Represented
- No