Cases2406179/2023

Claimant v BGC Bidco Limited [now called Tiger Feet Limited]

3 February 2025Before Employment Judge BattenManchesterin person

Outcome

Partly successful

Individual claims

Unfair Dismissalsucceeded

The tribunal found that the claimant's dismissal was substantively and procedurally unfair. The respondent had decided to dismiss the claimant months beforehand and used an alleged breach of confidentiality as a pretext to effect his removal swiftly as a 'bad leaver' in order to avoid paying him for his shares. The respondent did not have a genuine belief on reasonable grounds that the claimant was guilty of misconduct. No fair procedures were followed, the ACAS code was ignored, and alternatives to dismissal were not considered. The respondent acted unreasonably and unfairly.

Direct Discrimination(age)failed

The tribunal concluded that the treatment complained of (beratement in meetings and dismissal/replacement) was not because of age but because the claimant was the managing director and a shareholder whom the respondents had decided to remove. The tribunal found that on a balance of probabilities the respondents would have behaved in a similar manner to any senior executive in similar circumstances regardless of age.

Indirect Discrimination(age)failed

The tribunal found that the claimant had not established a PCP of requiring a 'young and dynamic' CEO or someone under 55. The tribunal considered Mr Dunn's comment about 'young and dynamic' to be a throwaway comment and not evidence of a discriminatory PCP. In line with Seldon, succession planning more likely results in recruiting someone younger but that result does not establish age discrimination without more.

Harassment(age)failed

The tribunal found that Mr Dunn's 'young and dynamic' comment was a private word of warning attributable to him personally and did not have the discriminatory purpose or effect required by s.26 EqA. Similarly, the reference to 'retirement' by the second respondent was understood as referring to the claimant's departure and was not unwanted conduct nor did it have the effect of harassment. The tribunal did not consider it reasonable in the circumstances for the claimant to have perceived these comments as amounting to harassment because of age.

Facts

The claimant co-founded a greeting cards business in 1984 which was sold to Ardenton in 2019, with the claimant remaining as managing director and 49% shareholder with an option to exit as a 'good leaver' after 5 years. Relationships deteriorated through 2022 as the business underperformed. Unknown to the claimant, the respondents began seeking a younger replacement and by late 2022 had agreed terms with Akhtar Zahid to start on 2 January 2023. On 3 January 2023 the claimant was ambushed in a Teams meeting and told to resign ('retire') or be dismissed. He was given 48 hours to decide. The next day, having told a few senior colleagues of his departure, he was summarily dismissed for alleged breach of confidentiality. No investigation or disciplinary process was undertaken.

Decision

The tribunal upheld the unfair dismissal claim, finding the dismissal substantively and procedurally unfair. The respondents had decided months earlier to dismiss the claimant to avoid paying him as a 'good leaver' and used the breach of confidentiality as a pretext. No fair procedures were followed and no alternatives considered. The tribunal rejected contributory fault and Polkey reductions. The age discrimination claims (direct, indirect and harassment) were dismissed. The tribunal found the treatment was not because of age but because the respondents had decided to remove the claimant as managing director and shareholder.

Practical note

An employer cannot use a minor or contrived breach of confidentiality as a pretext to effect summary dismissal when the real reason is commercial and the decision to dismiss was pre-determined; fair procedures cannot be dispensed with even for senior executives.

Legal authorities cited

Amnesty International v Ahmed [2009] IRLR 884Richmond Pharmacology v Dhaliwal [2009] ICR 724Anya v University of Oxford [2001] ICR 847Madarassy v Nomura International Plc [2007] ICR 867Igen v Wong [2005] ICR 931Hewage v Grampian Health Board [2012] UKSC 37Polkey v A E Dayton Services Ltd [1988] ICR 142Iceland Frozen Foods v Jones [1983] ICR 17Seldon v Clarkson Wright & Jakes [2012] ICR 716

Statutes

EqA 2010 s.13EqA 2010 s.5ERA 1996 s.98EqA 2010 s.39EqA 2010 s.26EqA 2010 s.23EqA 2010 s.136EqA 2010 s.109ERA 1996 s.94EqA 2010 s.19

Case details

Case number
2406179/2023
Decision date
3 February 2025
Hearing type
full merits
Hearing days
6
Classification
contested

Respondent

Sector
retail
Represented
Yes
Rep type
barrister

Employment details

Role
Managing Director
Service
39 years

Claimant representation

Represented
Yes
Rep type
barrister