Claimant v Kapia Partners Limited
Outcome
Individual claims
First respondent conceded unfair dismissal claim following finding that claimant was an employee. Concession recorded in case management order dated 19 September 2023. First respondent's application to withdraw concession was refused.
First respondent conceded wrongful dismissal claim following finding that claimant was an employee. Summary dismissal on 22 December 2022 constituted breach of contract.
Allegation 1 (3 September 2022 sexual advance by second respondent) succeeded as harassment related to sex under s.26(1). Second respondent made unwanted sexual advances and physical contact which violated claimant's dignity and created intimidating environment. Allegations 2 and 3 failed on facts. All other harassment allegations failed under s.26(1) but succeeded under s.26(3).
Allegation 1 succeeded as harassment by unwanted conduct of a sexual nature under s.26(2). Second respondent made unwanted sexual advances including physical touching after claimant rejected initial advance. Conduct had purpose and effect of violating claimant's dignity.
Allegations 4-11 and 15-17 (against second respondent) and 12 and 18 (against both respondents) succeeded under s.26(3) as less favourable treatment because claimant rejected sexual conduct on 3 September 2022. Included: ignoring claimant, performance complaints, exclusion from decisions, role stripped, failure to respond to grievance, and dismissal. Conduct done with purpose of violating dignity and creating intimidating environment, or reasonably had that effect. Allegations 1-3, 13-14, 19 failed under s.26(3).
Allegations 2, 3, 13, 14, 19 failed as direct sex discrimination. Allegations 2-3 failed on facts. Allegations 13-14, 19 failed because: (13) salary mislabelling was banking error affecting male comparator equally; (14) differential dividend was loan repayment to second respondent, not sex-related; (19) no dividends paid to anyone after December 2022. Allegations 1, 4-12, 15-18 dismissed under s.212(1) as they succeeded as harassment.
Grievances of 15 November and 9 December 2022 were protected acts but victimisation claims failed. Allegations 12, 15-18 succeeded as harassment so barred by s.212(1). For other allegations, tribunal found protected acts had no causal impact on respondents' conduct. Decision to dismiss claimant was made before protected acts (notice served 9 November, resolution signed 5 December). First respondent's failure to engage with grievances was to protect legal position on advice that claimant was not employee, not because of protected acts.
Withdrawn by claimant at hearing
Withdrawn by claimant at hearing
Facts
Claimant and second respondent were co-directors and equal shareholders of recruitment company. On 3 September 2022, second respondent made unwanted sexual advances toward claimant which she rejected. Thereafter, second respondent's attitude changed dramatically from supportive to hostile. He excluded her from decisions, made unmeritorious performance complaints, stripped her role, and ultimately orchestrated her dismissal as director and employee on 22 December 2022. Claimant raised grievances on 15 November and 9 December 2022 which were ignored. First respondent initially conceded unfair and wrongful dismissal if employee status established.
Decision
Tribunal found claimant was employee under contract of service. Unfair and wrongful dismissal claims succeeded on first respondent's concession. Sexual harassment claim (3 September 2022) succeeded under s.26(1) and s.26(2). Multiple subsequent acts of harassment succeeded under s.26(3) as less favourable treatment because claimant rejected sexual conduct. Direct sex discrimination and victimisation claims failed. Respondents jointly and severally liable. Remedy to be determined at further hearing.
Practical note
A director/shareholder can be an employee where there is mutuality of obligation, control, and wage payment through PAYE, even with significant shareholding; rejection of sexual advances can found harassment claims under s.26(3) where subsequent hostile treatment is causally linked to that rejection rather than to the victim's sex per se.
Legal authorities cited
Statutes
Case details
- Case number
- 1801191/2023
- Decision date
- 10 February 2025
- Hearing type
- full merits
- Hearing days
- 8
- Classification
- contested
Respondent
- Sector
- professional services
- Represented
- Yes
- Rep type
- barrister
Employment details
- Role
- Recruitment consultant / Director
- Service
- 2 years
Claimant representation
- Represented
- Yes
- Rep type
- barrister