Domestic cleaner dismissed for racist remark captured on covert recording: procedural unfairness but no compensation
A Leicester City Council cleaner with 11 years' service was dismissed for gross misconduct after a colleague secretly recorded her using racist language. The tribunal found the dismissal procedurally unfair but awarded no compensation because she would have been dismissed anyway.
1 min read · Last updated 18 May 2026
Case details
Key facts
- The claimant was employed as a domestic cleaner from 5 October 2005 to 6 October 2016.
- She was dismissed for gross misconduct after allegedly using racist language towards a colleague.
- The dismissal was procedurally unfair due to several conceded irregularities.
- The tribunal found that the claimant would have been dismissed in any event, applying a 100% Polkey reduction.
- The claimant's explanation that she was referring to a spider was rejected as implausible.
- The breach of contract claim was dismissed because the claimant's conduct justified summary dismissal.
Timeline
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Employment started
Claimant began working as a domestic cleaner at Border House hostel.
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Covert recording made
Colleague Janet Haslam secretly recorded conversations in the domestic suite, capturing the claimant using racist language.
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Recording played to management
Mrs Haslam played the relevant part of the recording to supervisor Betty Clarke and manager Patrick Kelly.
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Claimant suspended
Mr Kelly suspended the claimant pending investigation into the use of racist language.
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First investigatory meeting
Claimant denied making racist remarks; she was provided with a transcript of the recording.
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Second investigatory meeting
Claimant claimed she was referring to a spider, not a person; the 'clean' recording was played.
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Disciplinary hearing and dismissal
Mr Evans dismissed the claimant for gross misconduct; grievance appeal also dismissed.
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Claim presented to tribunal
Claimant filed claims for unfair dismissal and breach of contract.
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Preliminary hearing
Employment Judge Britton refused to strike out the claim and allowed amendment for breach of contract.
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Full merits hearing begins
Five-day hearing before Employment Judge Ahmed.
The legal issue
The tribunal had to decide whether the dismissal for gross misconduct was fair, and if not, whether compensation should be reduced because the claimant would have been dismissed anyway or contributed to her own dismissal.
The outcome
The tribunal found that the dismissal was procedurally unfair. The employer conceded several irregularities in the process. However, the tribunal applied a 100% Polkey reduction, meaning no compensation was awarded, because the claimant would have been dismissed in any event. The breach of contract claim was also dismissed because the claimant's conduct justified summary dismissal.
- Basic award: £0 (100% Polkey reduction applied to basic award as well)
- Compensatory award: £0
- Total compensation: £0
Lessons & takeaways
- Even if a dismissal is procedurally unfair, you may receive no compensation if the tribunal decides you would have been dismissed anyway.
- Covert recordings can be used as evidence in disciplinary proceedings, especially if the employer obtains legal advice on their admissibility.
- An implausible explanation for alleged misconduct can harm your credibility and reduce your chances of a successful claim.
- Employers should ensure a fair process, but procedural errors may not result in a payout if the outcome would have been the same.
This case shows how even a procedurally flawed dismissal can leave an employee with nothing if the tribunal is satisfied that the outcome would have been the same. The domestic cleaner, who had worked for Leicester City Council for 11 years, was dismissed after a colleague covertly recorded her using the words 'Black bastard'. The tribunal accepted that the recording captured the claimant using racist language and rejected her explanation that she was referring to a spider.
What went wrong for the employer
The council conceded several procedural failings, including delays in the investigation and issues with how the recording was handled. The tribunal found these made the dismissal unfair. However, the employer's key argument was that the misconduct was so serious that dismissal was inevitable. The tribunal agreed, applying a 100% Polkey reduction to eliminate any compensation.
What this means for similar claims
For employees, this case is a reminder that a finding of unfair dismissal does not guarantee a payout. If the tribunal believes you would have been dismissed anyway, compensation can be reduced to zero. For employers, it shows that while procedural errors can be costly, a strong case on the merits can still protect against financial awards. The use of covert recordings, while controversial, was accepted here because the employer took legal advice and the recording was relevant to the misconduct.
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