COLUMN: Uncapped compensation raises the stakes for unfair dismissal claims

The change increases the potential cost of getting dismissal decisions wrong and makes fair disciplinary procedures more important than ever.

The case of Orr v Milton Keynes Council highlights the risks employers face when disciplinary processes are not handled properly.

What happened?

Following misconduct allegations, youth worker Trevor Orr was dismissed and subsequently challenged the decision in the Employment Tribunal, arguing that the process had been flawed.

The key issue was whether the employer had followed a fair and thorough procedure before reaching its decision. It emerged that relevant information had not been passed to the manager responsible for making the disciplinary decision.

The Court of Appeal ultimately found the dismissal was fair because the decision-maker had conducted a reasonable investigation based on the information available.

However, the case demonstrates how failures to gather and share important evidence can expose employers to legal challenge.

Common investigation mistakes include:

- failing to interview key witnesses;

- overlooking relevant documents;

- making assumptions rather than establishing facts;

- ignoring evidence that supports the employee; and

- rushing the process.

The cost of getting it wrong

With compensation awards becoming uncapped, procedural failings may have much greater financial consequences.

Tribunal claims are often costly, time-consuming and disruptive. In Orr v Milton Keynes Council, more than five years passed between the dismissal and the final Court of Appeal judgment.

Prevention is better than litigation

Managers are rarely employment law specialists and often have to deal with disciplinary issues alongside their day-to-day responsibilities.

Early HR support can help ensure investigations are conducted fairly, procedures are followed correctly and risks are identified before they develop into tribunal claims.

Obtaining professional advice at an early stage can help protect your organisation from unnecessary risk and expense.

Wilkin Chapman Rollits’ experienced HR team can provide in-person support for meetings, investigations and day-to-day employee matters.

To find out more, call me on 01472 262639, email [email protected] or visit www.wilkinchapmanrollits.co.uk

This column was written by Kathy Winterburn of Wilkin Chapman Rollits