Old-school small business owners often place themselves at financial and reputational risk by taking a dictatorial approach to management. An Employment Tribunal (ET) made this point powerfully in awarding substantial compensation to an unfairly dismissed holiday park manager (Tweedale v Tithe Barn Club (Aldwick) Ltd).
The manager had a strong bond with the owner of the park, where he had worked for 26 years. After he suffered a major stroke, the owner – who was himself in very poor health – took steps to cater for his difficulties and generously supported him so that he could work at a reduced pace. However, their relationship later took a dramatic turn for the worse and the owner summarily dismissed him after making numerous allegations of misconduct against him.
In upholding his claim for unfair dismissal, the ET noted that some of those involved in the case had referred to the owner as 'old school'. The description of his proprietorial and autocratic approach to the park's management was borne out by the tone of his communications, including the dismissal letter. They conveyed the impression that employee consultation and fair process were, in the context of the case, of no concern to him.
The dismissal took place against the background of a falling out between the owner and his son, whose involvement in the business had acrimoniously ceased. The owner took the view that the manager's loyalties were to his son, rather than to him. On that basis, the ET found that the principal reason for the manager's dismissal was not any of the alleged misconduct on his part, but the owner's desire to make a fresh start in the business.
The ET ruled that the employer's failure to follow the basic requirements of the Acas Code of Practice on disciplinary and grievance procedures justified a 25 per cent uplift in the manager's basic compensatory award. Amongst other things, he was not informed of the disciplinary allegations against him prior to his dismissal and was afforded no opportunity to put his case forward. Even for a small business, the investigation into his alleged wrongdoing was unreasonable.
On the balance of probabilities, the ET found that the manager had disregarded the owner's instruction not to let chalets to a particular tenant. Despite doing so in the belief that he was acting in the best interests of the business, the ET found that he had made a 25 per cent contribution towards his dismissal. His wrongful dismissal claim was also upheld, and he was awarded more than £50,000 in compensation.
We can advise you on all aspects of employment law, including investigating and conducting disciplinary proceedings and unfair dismissal. Contact Emma-Louise Hewitt e.hewitt@sydneymitchell.co.uk 08081668860.
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