Two managers constructively dismissed after racist comment and failure to adjust for diabetes
An assistant store manager and a store manager with 8 and 15 years' service were constructively unfairly dismissed after their employer failed to investigate a racist comment, threatened dismissal, and required a diabetic employee to work alone on locked premises. The tribunal found a cumulative breach of trust and confidence.
2 min read · Last updated 18 May 2026
Case details
- #constructive-dismissal
- #race-related-harassment
- #disability-discrimination
- #failure-to-make-reasonable-adjustments
- #tupe-transfer
- #unfair-treatment
- #grievance-handling
Key facts
- Both claimants resigned after being subjected to a series of unreasonable acts by the respondent, including threats of dismissal, unfair disciplinary warnings, and failure to properly investigate grievances.
- Mr Makkar was subjected to a racist comment by a colleague (X) about his aftershave, which the respondent failed to investigate properly.
- Mr Bakiu, a Type 1 diabetic, was required to work alone on a locked door policy, placing him at risk of hypoglycaemic episodes, and the respondent failed to make reasonable adjustments.
- The respondent treated another employee (Y) more favourably than the claimants, despite her engaging in similar or worse conduct.
- The respondent's HR director, Ms Jethwa, effectively made all key decisions in the claimants' disciplinary and grievance processes, despite being the subject of one of the grievances.
- Both claimants' claims of constructive unfair dismissal succeeded; Mr Makkar's race-related harassment claim was dismissed as out of time.
Timeline
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TUPE transfer
The claimants' employment transferred from Beverley Hills Ltd to Neve Jewels Ltd under TUPE.
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Racist comment by X
X made a comment to Mr Makkar implying that strong aftershave from India was to be expected.
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Threat of dismissal and formal grievance
Ms Jethwa threatened Mr Makkar with dismissal without reason. Mr Makkar raised a formal grievance about the threat and the racist comment.
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Overtime dispute and working hours change
Mr Bakiu queried unpaid overtime; the respondent then hardened its stance on working hours, requiring 9am-6pm or work on bank holidays.
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Y starts work
Y, sister of X, started as Assistant Manager. Mr Makkar was asked to train her.
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Y's complaint about Mr Makkar
Y emailed a complaint that Mr Makkar had not trained her properly. The respondent initiated disciplinary proceedings against Mr Makkar.
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Disciplinary hearing for Mr Makkar
Mr Makkar attended a disciplinary hearing regarding failure to train Y.
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Final written warning for Mr Makkar
Mr Makkar received a final written warning, which the tribunal later found to be unjustified.
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Grievance outcome
Mr Makkar's grievance was dismissed; the outcome letter stated the racist comment was 'resolved informally' and no evidence of threats was found.
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Mr Bakiu resigns
Mr Bakiu resigned with immediate effect, citing the effect on his health.
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Mr Makkar resigns
Mr Makkar resigned, citing loss of trust and the effect on his mental health.
The legal issue
The tribunal had to decide whether each claimant was constructively unfairly dismissed because the employer's conduct destroyed the mutual trust and confidence needed for the employment relationship. It also considered whether a race-related harassment claim was brought in time and whether the employer failed to make reasonable adjustments for a disabled employee.
The outcome
The tribunal upheld both claims of constructive unfair dismissal. It found that the employer's conduct – including threatening dismissal without reason, issuing an unjustified final written warning, dismissing a grievance without proper investigation, and requiring a Type 1 diabetic employee to work alone on locked premises – cumulatively destroyed trust and confidence.
- Both claimants resigned in response to the breach.
- Mr Makkar's race-related harassment claim was dismissed as out of time.
- Mr Bakiu's reasonable adjustments claim was not determined at this stage; a remedy hearing will follow.
- No compensation figures have yet been awarded.
Lessons & takeaways
- If you are subjected to a racist comment at work, report it promptly and keep a record – delay can bar a harassment claim even if the underlying treatment is part of a constructive dismissal case.
- Employers must investigate grievances properly, especially where the HR director is the subject of the grievance – impartiality is essential.
- Requiring a diabetic employee to work alone on locked premises without a way to get help in an emergency is a clear failure to make reasonable adjustments.
- A series of small unreasonable acts can together amount to a breach of trust and confidence, even if no single act would justify resignation.
What this case shows in practice
Two experienced managers – one with 8 years' service, the other with 15 – resigned within weeks of each other after a series of events that the tribunal described as a 'cumulative breach of trust and confidence'. The assistant store manager, Mr Makkar, was told by a colleague that his aftershave 'sounds about right' for India. When he complained, the employer's HR director – who was herself the subject of a separate grievance – dismissed the complaint as 'resolved informally' and gave him an unjustified final written warning for failing to train the colleague's sister. The store manager, Mr Bakiu, who has Type 1 diabetes, was repeatedly required to work alone in a locked store, putting him at risk of a hypoglycaemic episode without anyone to help.
What the employer could have done differently
The employer's failures were multiple. First, the racist comment should have been properly investigated, not brushed aside. Second, the disciplinary warning against Mr Makkar was based on a complaint from a colleague who had only just started and was the sister of the person who made the racist comment – a clear conflict of interest. Third, the HR director should not have handled the grievance against herself. Fourth, once the employer knew Mr Bakiu had diabetes, it should have arranged cover or an alternative system so he was never alone in a locked store. The tribunal noted that the employer treated another employee more favourably for similar conduct, which undermined any claim of consistency.
Why the result matters
This case is a reminder that constructive dismissal claims can succeed even where no single act is catastrophic – it is the cumulative effect that matters. It also shows that employers cannot ignore health and safety risks for disabled employees, and that grievance and disciplinary processes must be seen to be fair. For employees, the case highlights the importance of acting promptly: Mr Makkar's race harassment claim failed because he did not bring it within three months, even though the same conduct formed part of his constructive dismissal claim. A remedy hearing will now decide compensation for the two managers.
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