The claimant had been chief executive and a director of the respondent for many years, but was dismissed upon it being taken over. His contract of employment as chief executive provided that it was to be coterminous with his appointment as director.
Held: The tribunal were not wrong in law in identifying the reason and holding that it was ‘some other substantial reason’ justifying the dismissal. It could not be said that the desire of the new shareholders of a company to create a new board of directors was not a substantial reason justifying the dismissal of an incumbent chief executive consequent on his losing office as a director. Nor was the process of dismissal unfair.
Judges:
Lord Justice Aldous Lord Justice Mummery Lord Justice Rix
Citations:
[2003] EWCA Civ 646, Times 15-May-2003, Gazette 17-Jul-2003, [2003] ICR 1050, [2003] IRLR 706
Links:
Statutes:
Employment Rights Act 1996 98(1)
Jurisdiction:
England and Wales
Citing:
Cited – Hollister v National Farmers Union (NFU) CA 1979
The correct approach for the Industrial Tribunal looking at a company re-organisation is to make a finding as to the advantages to the employers of a proposed re-organisation and whether it was reasonable for them to implement it by terminating . .
Cited – Abernethy v Mott Hay and Anderson CA 1974
Lord Cairns said: ‘A reason for the dismissal of an employee is a set of facts known to the employer, or it may be of beliefs held by him, which cause him to dismiss the employee. If at the time of his dismissal the employer gives a reason for it, . .
Cited – Priddle v Dibble EAT 1978
The reasons available to an employer under section 98(1)(b) are not limited to reasons of the same kind as those spelt out in section 98(2), nor do they require consideration of the fairness of the dismissal, which falls to be considered under . .
Cited – Johnson v Unisys Ltd HL 23-Mar-2001
The claimant contended for a common law remedy covering the same ground as the statutory right available to him under the Employment Rights Act 1996 through the Employment Tribunal system.
Held: The statutory system for compensation for unfair . .
Lists of cited by and citing cases may be incomplete.
Employment
Updated: 31 October 2022; Ref: scu.182042
