Covert recording led to dismissal: breakdown in working relationships found unfair
A lettings negotiator with seven years' service was unfairly dismissed after a breakdown in working relationships following a covert recording. The tribunal found the procedure flawed and applied a 10% ACAS uplift.
1 min read · Last updated 18 May 2026
Case details
- #breakdown-in-working-relationship
- #some-other-substantial-reason
- #acas-code-uplift
- #covert-recording
- #small-employer
- #commission-deduction
Key facts
- The claimant worked as a Lettings and Sales negotiator from November 2015 until dismissal on 31 January 2022.
- The respondent acquired the business in June 2021 and introduced new practices.
- The claimant received a first written warning on 3 December 2021 for failure to follow reasonable management requests.
- The claimant was dismissed on 31 January 2022 for breakdown in working relationships (some other substantial reason).
- The tribunal found the dismissal was both substantively and procedurally unfair.
- The respondent failed to follow the ACAS Code, resulting in a 10% uplift.
Timeline
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Employment started
Claimant commenced employment as a Trainee Lettings Negotiator.
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Business acquired
Mr Cole took over the business; Mrs Valdez became manager.
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Claimant raised complaint
Claimant complained about unfair allocation of applicants.
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Informal meeting
Mr Cole and Mrs Valdez held an informal meeting with claimant about concerns.
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Covert recording and suspension
Claimant covertly recorded a meeting with Mrs Valdez; was suspended.
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Disciplinary meeting
Claimant received a first written warning for failure to follow reasonable management requests.
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Return to work
Claimant returned from suspension.
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Invitation to meeting
Claimant invited to a meeting to discuss breakdown in working relationship.
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Dismissal
Claimant dismissed for some other substantial reason (breakdown in working relationship).
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Appeal
Claimant emailed appeal against dismissal; not progressed by respondent.
The legal issue
The tribunal had to decide whether the claimant was unfairly dismissed for 'some other substantial reason' (breakdown in working relationships), whether the employer followed a fair procedure, and whether the claimant was owed unpaid commission.
The outcome
The tribunal found the claimant was unfairly dismissed. The dismissal was both substantively and procedurally unfair. The employer did not follow the ACAS Code, resulting in a 10% uplift to any compensation. The claimant did not contribute to her dismissal and no Polkey reduction applied.
- Unfair dismissal: successful
- ACAS Code uplift: 10%
- Unpaid commission for July and August 2021: successful
- Claim for 10% commission on all fees: failed
- Holiday pay claim: dismissed on withdrawal
- Remedy hearing to be listed
Lessons & takeaways
- Covert recordings can damage trust but do not automatically justify dismissal without a fair process.
- Employers should investigate the reasons for a breakdown in working relationships and consider alternatives before dismissing.
- Failing to follow the ACAS Code can increase compensation by up to 25%.
- Employees with long service are entitled to a fair procedure, including a proper appeal process.
What this case shows
A lettings negotiator with seven years' service was dismissed after a breakdown in working relationships with new management. The trigger was a covert recording of a meeting, but the tribunal found the employer had not followed a fair procedure. The dismissal was for 'some other substantial reason', but the employer failed to properly investigate the breakdown or consider alternatives like mediation.
What the employer could have done differently
The employer could have conducted a proper investigation into the breakdown, given the employee a chance to respond to concerns, and considered alternatives to dismissal. They also failed to progress the employee's appeal, which contributed to the finding of unfairness. Following the ACAS Code would have avoided the 10% uplift.
Why this matters
This case highlights that even where a working relationship has broken down, employers must follow a fair process. Covert recordings are not necessarily a 'smoking gun' that justifies dismissal. Employees with long service are entitled to a proper procedure, and failing to do so can lead to increased compensation.
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