Can a breakdown in trust and confidence justify a fair dismissal?

11th December 2024

Yes, held the Employment Appeal Tribunal (EAT) in Alexis v Westminster Drug Project (WDP).

It was found by the EAT that length of service, while valuable, was not relevant where dismissal was due to an irretrievable breakdown in relationship between the employer and employee.

Background

WDP undertook a restructuring process to streamline operations, reducing three receptionist/administrator roles into two positions: receptionist and administrator. All three post-holders were required to apply for the new roles and undergo a competitive interview process. The Claimant was unsuccessful in her interview. She had dyslexia and raised a grievance about the interview process namely that she should have received the interview questions 24 hours in advance. She rejected the outcome of the grievance and subsequently appealed, but her appeal was also unsuccessful.

Following this, the Claimant also rejected the outcome of the appeal and expressed her dissatisfaction through multiple emails to decision-makers, including WDP’s chairperson, escalating tensions between the parties. WDP invited her to a meeting to assess whether her continued employment was viable. At the meeting, WDP concluded that the relationship had irretrievably broken down, and the Claimant was dismissed with notice for “some other substantial reason.” She subsequently filed a claim for unfair dismissal.

 Tribunal and appeal decisions

 The employment tribunal found that the dismissal was fair, and the Claimant’s unfair dismissal claim was dismissed. She appealed on two grounds:

  1. Insufficient weight was given to her length of service.
  2. Alternatives to dismissal had not been considered.

The EAT upheld the original tribunal’s ruling. It found that WDP had reasonable grounds for concluding that trust and confidence between the Claimant and WDP had irretrievably broken down. The EAT clarified that once such a breakdown occurs, dismissal may be the only viable option, and employers are not obligated to consider alternatives. On the issue of length of service, the EAT determined it was irrelevant because the dismissal was based solely on the breakdown of the relationship, not on performance or conduct issues.

Key takeaways

This case underscores several important points for employers:

  • A dismissal can be deemed fair if there is clear evidence of a genuine and irretrievable breakdown in trust and confidence between the employer and employee.
  • While length of service is a factor in many dismissal cases, it is only relevant if it pertains to the decision to dismiss.
  • Employers must follow a fair and transparent process when handling grievances raised by employees.

It is always advisable to seek legal advice before taking such action to ensure compliance with employment law. We’re here to help, get in touch with Rajveer Basra at RajveerBasra@schofieldsweeney.co.uk.

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