Cases6003766/2024

Claimant v InvestCloud Limited

28 August 2025Before Employment Judge L BrownLondon Centralin person

Outcome

Partly successful

Individual claims

Unfair Dismissalsucceeded

Tribunal found dismissal was for redundancy (a potentially fair reason) but Respondent failed to consult at a formative stage and failed to conduct fair selection process for the potentially suitable alternative role of Head of APL Sales. The consultation in January 2024 was too late to be meaningful; effective decisions had been made by December 2023. This was outside the band of reasonable responses.

Automatic Unfair Dismissalfailed

Tribunal found Claimant made some protected disclosures (PD2, PD3, PD4) but that the protected disclosures played no part in the reason for dismissal. The dismissal was because Respondent decided to stop work on Marketplace, not because of the disclosures. Senior decision-makers (Lumb and Bellini) were either unaware of the disclosures or considered their content unremarkable and already widely known.

Detrimentfailed

Tribunal found one detriment established on facts (failure to consult at formative stage) but not done on ground of protected disclosures. Other alleged detriments either not established on facts or, if established, shown by Respondent not to be because of protected disclosures. Ms Bellini's negative view of Claimant was based on her genuine assessment of his capabilities, not his disclosures. Decisions driven by poor financial position and doubts about Marketplace viability.

Facts

Claimant was Executive VP Business Development at a US-headquartered fintech company, working on a digital product called Marketplace and managing key client relationships. He raised concerns internally about the company having mis-sold products it could not deliver to major client Rathbones and about staff health suffering. In 2023 new senior leadership (Lumb and Bellini) concluded Marketplace was unviable and the company was losing money. Claimant was not appointed to a new Head of APL Sales role in late 2023. In January 2024 the company discontinued Marketplace and dismissed Claimant and two US-based Marketplace colleagues for redundancy, after a brief two-week consultation.

Decision

Tribunal found dismissal was for redundancy (a potentially fair reason) but unfair due to failure to consult at formative stage and failure to conduct fair selection for the one potentially suitable alternative role (Head of APL Sales). Whistleblowing claims failed: some protected disclosures were made but they played no part in the dismissal or alleged detriments. Senior decision-makers were unaware of or indifferent to the disclosures; decisions driven by financial pressures and doubts about Marketplace. 50% Polkey reduction applied as Claimant may not have been selected for APL role even with fair process. Further 10% reduction for minor breach of confidentiality clause.

Practical note

Even where protected disclosures are established, whistleblowing claims will fail if the decision-makers were unaware of them or the disclosures played no part in their reasoning; redundancy dismissals require meaningful consultation before key restructuring decisions are finalised, not merely formal consultation after the fact.

Adjustments

Polkey reduction50%

Tribunal found 50% likelihood Claimant would have been dismissed fairly for redundancy in any event, following a fair selection process for the Head of APL Sales role. Factors were finely balanced; Claimant had not impressed Ms Bellini but had some strong sales achievements; Mr Pollak had little objective evidence of strong performance in 2023.

Legal authorities cited

R v British Coal Corporation ex parte Price [1994] IRLR 72W Devis and Sons Ltd v Atkins [1977] ICR 662Williams v Compair Maxam [1982] ICR 156Boston Deep Sea Fishing v Ansell (1888) 39 ChD 339Tokio Marine Kiln Insurance Services Ltd v Yi Yang [2013] EWHC 1948 (QB)Brandeaux (Advisers) UK Ltd v Chadwick [2011] IRLR 424

Statutes

Employment Rights Act 1996 s.43CEmployment Rights Act 1996 s.43BEmployment Rights Act 1996 s.43AEmployment Rights Act 1996 s.47BEmployment Rights Act 1996 s.103AEmployment Rights Act 1996 s.98Employment Rights Act 1996 s.94

Case details

Case number
6003766/2024
Decision date
28 August 2025
Hearing type
full merits
Hearing days
9
Classification
contested

Respondent

Sector
technology
Represented
Yes
Rep type
barrister

Employment details

Role
Executive Vice President Business Development
Service
3 years

Claimant representation

Represented
No