The Supreme Court has ruled that the costs of surveys and studies in connection with the...
Employers who fail to adhere to the Acas Code of Practice on Disciplinary and Grievance Procedures risk having compensation awards increased by up to 25 per cent, as highlighted in a recent Employment Tribunal (ET) case (Smith v Amadeo Systems Ltd and Another).
In this case, a marketing associate who had been dismissed brought claims for automatic unfair dismissal, direct race discrimination, and harassment on racial grounds. He alleged that his employer’s CEO had made racist remarks and that he was dismissed after asserting his right to a rest break when asked to work two consecutive weekends. He also pursued claims for unlawful wage deductions and unpaid holiday pay.
Following witness testimonies, the ET dismissed his race discrimination, harassment, and automatic unfair dismissal claims, ruling that the alleged remarks were not made and that his dismissal was due to leaving an exhibition without permission, rather than asserting a statutory right. The tribunal noted that he would have succeeded in an ordinary unfair dismissal claim had he completed two years’ service.
However, his claim for unlawful deduction from wages was upheld. The employer contended that deductions were justified due to insufficient logged hours, but the ET disagreed, stating that as a salaried employee, any concerns about his working hours should have been addressed through a disciplinary process rather than wage deductions. The employer was ordered to pay him £2,917 in deducted wages and £404 for unused holiday leave.
Crucially, the ET found that the employer had entirely failed to follow the Acas Code. The employee was not informed of the allegations against him, no disciplinary process was conducted, and his grievance following dismissal was ignored. While his claim included false statements, the tribunal determined that the breaches of procedure occurred before his claim was brought. As a result, the ET ruled it just and equitable to increase his compensation by 25 per cent.
This case underscores the importance of following proper disciplinary and grievance procedures to avoid costly penalties in employment disputes.