Employer’s Hardline Anti-Corruption Policy Passes Legal Test

Many businesses, particularly those that deal with governmental authorities, sensibly have anti-corruption policies in place. One such policy came under close analysis in an employment case concerning a golfing trip provided to a public official.

A senior employee of a software company…

Nov 18, 2021

A senior employee of a software company was dismissed for gross misconduct after he authorised payment of the cost of the overseas trip taken by a senior official in a government agency. He subsequently launched Employment Tribunal (ET) proceedings, but his unfair dismissal complaint was rejected.

Ruling on his challenge to that outcome, the Employment Appeal Tribunal (EAT) noted that it was accepted that he did not authorise the payment with a view to achieving a gain or undue influence. There was no suggestion that he had intentionally set out to do something improper. He viewed the trip, on which the official was accompanied by one of the company’s sales managers, as a networking opportunity and a chance to build a rapport with a customer.

Rejecting his appeal, however, the EAT found that the payment was unauthorised within the meaning of the company’s anti-corruption policy. The trip was paid for in order to obtain or retain the agency’s business as an important client. The policy set a precautionary standard and its spirit and purpose was to ensure that employees avoided situations that gave even the appearance of impropriety.

Despite the absence of any corrupt intent on the employee’s part, it was not perverse of the ET to find that the policy had been breached. He had felt uncomfortable about authorising such a substantial payment and should either have refrained from doing so, explored the matter more fully or sought advice from the company’s legal department. He was aware that there was a potential problem and, in failing to take any of those courses, had acted in wilful disregard of the policy.

Given the potentially catastrophic reputational and other damage that could arise if it committed, or was suspected of committing, a breach of anti-bribery legislation, the company was entitled to take a hard line. The dismissal decision thus lay within the range of reasonable responses open to the company. There was no procedural unfairness in the internal disciplinary process and the ET had given adequate reasons for rejecting the employee’s claim.

Parcel Delivery Franchisees ‘Self-Employed’ – Guideline EAT Ruling

A right to substitute someone else to perform your work is perhaps the most powerful indicator that you are self-employed. The Employment Appeal Tribunal (EAT) made that point in finding that franchisees engaged by a parcel delivery company enjoyed neither the protected status of an employee nor that of a worker. The case concerned two men who entered into standard-form franchise agreements whereby they were required to provide a vehicle and driver to make collections and deliveries for the…

Women are More Likely to Bear Childcare Responsibilities – That’s a Fact

Judges do not operate in a vacuum and are entitled to take the view that some facts are so obvious that there is no requirement to prove them. In an important ruling, the Employment Appeal Tribunal (EAT) found that that principle applies to the fact that women are more likely to bear childcare responsibilities than men. The case involved a community nurse who was primary carer for her three children, two of them disabled. Due to her responsibilities as a mother, she worked only on Wednesdays…

There’s a Big Difference Between Assertive Management and Bullying

There is all the difference in the world between an assertive management style and one that descends into aggressive bullying. As an Employment Tribunal (ET) ruling showed, employers who fail to take effective steps to stamp out the latter behaviour expose themselves to severe reputational and financial consequences. The case focused on the stormy relationship between a charity employee and her line manager. Matters came to a head at a meeting when the line manager was seen to become…