Cases2600849/2022

Claimant v Gravity Supply Chain Solutions Limited

7 May 2024Before Employment Judge H ClarkNottinghamin person

Outcome

Partly successful£89,892

Individual claims

Unfair Dismissalsucceeded

The respondent conceded the dismissal was unfair on procedural grounds. The tribunal found wholesale failures to comply with the ACAS Code: no proper investigation, no meaningful meetings, reasons not articulated in advance, dismissal letter gave no right of appeal, and the grievance raised by the claimant was ignored. The tribunal rejected the respondent's assertion that poor performance was the reason, finding Mr Graham continued to perform well despite difficult personal circumstances.

Direct Discrimination(disability)succeeded

The claimant suffered discrimination by association due to his wife's terminal cancer diagnosis. The tribunal found that Mr Parker's decision-making was influenced by assumptions about the impact of Mrs Graham's deteriorating disability on Mr Graham's ability to commit to the business. The tribunal identified several acts: reducing sick pay to SSP in September 2021, a meeting in a hospital car park to propose demotion and pay cut, non-payment of commission, and ultimately dismissal in December 2021. Each was less favourable treatment because of the associated disability. The tribunal found Mr Parker's actions from early 2019 onwards were informed by assumptions about Mrs Graham's ill health and its effect on Mr Graham.

Victimisationfailed

The tribunal found that although two protected acts were accepted, the second played no material part due to its timing and the withdrawal of share-related allegations. The claimant did not establish that the detriments relied upon were because he had done a protected act.

Unlawful Deduction from Wagespartly succeeded

The claim for SSP deduction in September 2021 failed on time limit grounds — the tribunal found it was reasonably practicable to have brought the claim within the three-month time limit, particularly given the claimant's ongoing contact with the respondent. The claim for secondary commission in December 2021 succeeded on the merits — the tribunal found the commission was contractually due but the respondent failed to pay it. However, no separate award was made as this loss was already compensated as part of the discrimination award to avoid double recovery.

Breach of Contractfailed

The tribunal found the employer had contractual power to place the claimant on garden leave under clause 21.3 of the contract, and that the effective date of termination was 30 May 2022, meaning the notice period was worked (albeit on garden leave). The claims of wrongful dismissal and breach relating to commission payments failed as they were compensated under other heads or not made out on the facts.

Holiday Paysucceeded

The claimant was owed 12 days' accrued but untaken holiday as at 1 December 2021, agreed by the respondent. The tribunal found that the respondent had calculated holiday pay only to the date of the notice letter and not through to the actual effective date of termination (30 May 2022). Recalculating under the Working Time Regulations, the claimant was owed a total of 23 days. Credit was given for a payment made in June 2022, leaving a balance due.

Facts

Mr Graham was Head of Business Partnerships for a supply chain software start-up from 2015. In January 2019, his wife was diagnosed with terminal stage 4 cancer. The CEO, Mr Parker, supported his return to the UK but held assumptions about the impact of Mrs Graham's deteriorating health on Mr Graham's commitment. In September 2021, the respondent reduced his sick pay to SSP during a brief absence. In October 2021, Mr Parker met Mr Graham in a hospital car park and proposed a demotion and 50% pay cut, citing business performance. Mr Graham rejected this and raised a grievance. In December 2021, he was dismissed by letter citing the manner in which he had challenged the sick pay decision. Commission due was not paid. Mr Graham found new employment in March 2022. His wife died in April 2022.

Decision

The tribunal found the dismissal was unfair (conceded) and that Mr Graham suffered direct disability discrimination by association throughout the events of 2021, driven by Mr Parker's assumptions about his wife's disability. The tribunal awarded compensation including injury to feelings in the middle Vento band (£22,000 including £2,000 aggravated damages), unpaid commission, shortfall in sick pay, and accrued holiday pay. A 25% ACAS uplift was applied for wholesale procedural failures. The total award was £89,891.94 after grossing up. The first respondent was liable for all sums; the second respondent was jointly and severally liable for the discrimination awards only.

Practical note

Employers must not allow assumptions about an employee's caring responsibilities for a disabled family member to influence decisions about pay, role, or dismissal — such treatment is unlawful discrimination by association even where the employee continues to perform well.

Award breakdown

Basic award£5,139
Compensatory award£450
Injury to feelings£22,000
Holiday pay£5,553
Unpaid wages£3,097
Loss of statutory rights£450
Interest£6,377

Vento band: middle

Award equivalent: 35.4 weeks' gross pay

Adjustments

ACAS uplift+25%

The tribunal found wholesale failures to comply with the ACAS Code: no proper investigation, no meaningful meetings in the spirit of the Code, dismissal letter came out of the blue with no prior articulation of concerns, no right of appeal, and the claimant's grievance was ignored. The tribunal awarded the maximum 25% uplift on all compensatory heads except the basic award (which is excluded by statute). The tribunal included the SSP deduction claim in the uplift because it formed a central part of the ignored grievance.

Legal authorities cited

Armitage, Marsden and HM Prison Service v Johnson [1997] IRLR 162MOD v Cannock [1994] IRLR 509Commissioner of Police of the Metropolis v Shaw UKEAT/0125/11/ZTHM Land Registry v McGlue UKEAT/0435/11/RNAlexander v Home Office [1988] 2 All ER 118Voith Turbo Ltd v Stowe [2005] IRLR 228Chagger v Abbey National Plc [2010] ICR 397Vento v Chief Constable of West Yorkshire Police [2003] ICR 318

Statutes

Income Tax (Earnings and Pensions) Act 2003Equality Act 2010 s.119Equality Act 2010 s.124Equality Act 2010 s.13Employment Rights Act 1996 s.98Employment Rights Act 1996 s.123Employment Rights Act 1996 s.207AWorking Time Regulations 1998

Case details

Case number
2600849/2022
Decision date
7 May 2024
Hearing type
full merits
Hearing days
2
Classification
contested

Respondent

Sector
technology
Represented
Yes
Rep type
barrister

Employment details

Role
Head of Business Partnerships
Salary band
£100,000+
Service
7 years

Claimant representation

Represented
Yes
Rep type
solicitor