Director unfairly dismissed

An employment tribunal has heard that company director had his directorship removed with the explanation that he had not been appointed properly; amid an ongoing board dispute at the company.  The director was summarily dismissed for five allegations of misconduct, including his behaviour at a board meeting and giving false information to a new colleague about who were the owners of the business. This came about after heated and unpleasant board meetings where tempers frayed between the directors.

However, the tribunal found that whilst the director may have contributed to the events leading to the dismissal (resulting in a reduction in reward by 25%), he was unfairly dismissed.

The strained relationships between the business owners resulted in them removing the directorship but due to the particular circumstances, failed to consult or advise him.  It only became apparent when he checked companies’ house. No matter the circumstances, any changes to contractual terms should always involve consultation. There was no due process here and the outcome was unfair.  This was a costly error for the remaining directors!

For any support in managing contractual changes within a business, contact a member of the 121 HR Solutions for guidance – enquiries@121hrsolutions.co.uk

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