Compliance manager demoted, then dismissed after lodging a grievance: unfair dismissal

A demotion, a grievance, and a dismissal that didn't add up

This case shows what can happen when an employer mixes up performance management with disciplinary action. The employee, a Compliance Manager with seven years' service, was demoted in April 2018 after a short period in the role. A training plan was put in place in July to address performance concerns, but it was never completed. When the employee lodged a grievance in August about how she had been treated, the employer responded by dismissing her for gross misconduct just weeks later.

The tribunal looked closely at the employer's claim that the dismissal was for conduct — specifically, administrative errors in printing and filing. But the evidence told a different story. The errors were minor, the training plan was unfinished, and the timing of the dismissal so soon after the grievance suggested the real reason was a combination of poor performance and the employee's complaint. The employer had not followed a fair process: the disciplinary hearing was flawed, and the decision to label the errors as gross misconduct was unreasonable.

What the employer could have done differently

The employer could have avoided this outcome by sticking to the capability process they had already started. Completing the training plan and giving the employee a fair chance to improve would have been the reasonable approach. Instead, they jumped to dismissal for misconduct, which the tribunal found was a pretext. Employers should be careful not to use conduct procedures to deal with performance issues, especially when an employee has recently raised a grievance.

Why this matters for similar claims

This case is a reminder that tribunals will look beyond the label an employer puts on a dismissal. If the real reason is capability or a response to a grievance, the dismissal will be unfair even if the employer calls it gross misconduct. For employees, it shows the importance of documenting performance issues and grievances — and of challenging a dismissal that feels like retaliation. The compensation of £11,885 reflects the employee's length of service and the lack of any reduction for contributory fault, as the tribunal found she was not to blame for the unfair process.