Can an employer give a false reason for dismissal?
Sometimes employers will give a different reason for dismissal to spare an employee from disciplinary action and its consequences. However, as can be seen from Base Childrenswear v Otshudi putting a false label on a dismissal can prove expensive, despite being well intentioned.
The employee was from the Democratic Republic of Congo. She had been employed as a photographer for only three months when her employment was dismissed on grounds of redundancy. She alleged at the dismissal meeting that her dismissal was related to her race. The dismissing manager strongly denied this. She then raised a grievance which was ignored. She claimed discrimination. In its defence the employer maintained that her dismissal was on grounds of redundancy.
Only weeks before the hearing (which was over a year later) the employer altered its defence saying that the employee had been dismissed because of suspicions of theft. The dismissing manager said he had lied to the employee about the reason for her dismissal because he wanted to avoid confrontation with her. The employment tribunal upheld the discrimination claim. Adverse inferences were drawn from the employer’s refusal to respond to the grievance. Notwithstanding that it was clear that confrontation was unavoidable, the employer had continued to state that redundancy was the reason for dismissal.
The employment tribunal held that the dismissal was tainted by race and that the employer was trying to cover this up. The Court of Appeal declined to interfere. The Court said that giving an entirely false reason for dismissal in response to an allegation of discrimination can be a sign that discrimination has occurred. Although the employer may have genuinely believed in the employee’s guilt, the Court of Appeal said that this was based on so little investigation or evidence that it had to be due to stereotypical assumptions about black people.
This case shows the importance of being honest to an employee when contemplating dismissal and ensuring that the right process is followed.
To discuss dismissal or race discrimination in the workplace, contact on [email protected] or call 01473 298168.
