Cases1801191/2023

Claimant v Kapia Partners Limited

10 February 2025Before Employment Judge BrainLeedsin person

Outcome

Partly successful

Individual claims

Unfair Dismissalsucceeded

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.

Wrongful Dismissalsucceeded

First respondent conceded wrongful dismissal claim following finding that claimant was an employee. Summary dismissal on 22 December 2022 constituted breach of contract.

Harassment(sex)partly succeeded

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).

Harassmentsucceeded

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.

Harassmentpartly succeeded

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).

Direct Discrimination(sex)failed

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.

Victimisationfailed

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.

Harassment(sexual orientation)withdrawn

Withdrawn by claimant at hearing

Direct Discrimination(sexual orientation)withdrawn

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

Vento v Chief Constable of West Yorkshire Police [2003] ICR 318South Western Ambulance Service NHS Foundation Trust v King [2020] IRLR 168, EATNowicka-Price v Chief Constable of Gwent Constabulary UK EAT/0268/09Polkey v A E Dayton Services Ltd [1988] ICR 142Chagger v Abbey National Plc [2010] ICR 397

Statutes

Employment Rights Act 1996 s.230(1)Equality Act 2010 s.13Equality Act 2010 s.26Equality Act 2010 s.27Equality Act 2010 s.49(2)Equality Act 2010 s.83(2)Equality Act 2010 s.109Equality Act 2010 s.110Equality Act 2010 s.123Equality Act 2010 s.136

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