Cases6008746/2024

Claimant v Olive Jar Digital Limited

14 March 2025Before Employment Judge C Lewison papers

Outcome

Claimant succeeds

Individual claims

Unfair Dismissalsucceeded

The tribunal found the respondent dismissed the claimant on 21 May 2024 and artificially constructed a narrative that she had resigned on 3 May 2024. The respondent did not have legitimate grounds for dismissal and failed to follow proper process.

Wrongful Dismissalsucceeded

The tribunal found the claimant was dismissed on 21 May 2024 without proper notice or justification, rejecting the respondent's defence that she had resigned on 3 May 2024.

Unlawful Deduction from Wagessucceeded

The tribunal found for the claimant on her unauthorised deductions claim, which was consequentially linked to the finding that she was dismissed rather than having resigned.

Facts

The claimant was dismissed on 21 May 2024, but the respondent falsely claimed she had resigned on 3 May 2024 based on a handover email. The respondent also made unsubstantiated allegations of gross misconduct including misuse of TOIL and performance issues. Settlement negotiations at £35,000 broke down over the wording of clauses addressing the gross misconduct allegations, which the claimant wanted formally withdrawn and acknowledged as unsubstantiated.

Decision

This was a costs judgment following a successful liability hearing. The tribunal awarded the claimant £15,000 in costs on the basis that the respondent acted unreasonably in defending the claims by persisting with a false narrative that the claimant had resigned and making unjustified allegations of gross misconduct. The tribunal rejected the respondent's counter-application for costs based on the claimant's rejection of a settlement offer.

Practical note

An employer who artificially constructs a resignation narrative and makes unsubstantiated gross misconduct allegations will face a substantial costs award, even where a favourable settlement offer was rejected by a claimant seeking vindication.

Legal authorities cited

Daleside Nursing Home Ltd v Mathew UKEAT/0519/08Kopel v Safeway Stores PLC [2003] IRLR 573Yerrakalva v Barnsley Metropolitan Borough Council [2012] ICR 420McPherson v BNP Paribas [2004] EWCA Civ 56

Case details

Case number
6008746/2024
Decision date
14 March 2025
Hearing type
costs
Hearing days
Classification
procedural

Respondent

Sector
technology
Represented
No
Rep type
self

Claimant representation

Represented
No