Sales manager dismissed by phone after asking for bonus: unfair dismissal
A sales manager who was dismissed by phone after insisting on a contractual £3k bonus has been awarded over £39,000 for unfair dismissal. The tribunal found the real reason was the bonus dispute, not poor performance.
1 min read · Last updated 18 May 2026
Case details
Key facts
- The claimant was dismissed by phone on 28 February 2022 without prior warning or process.
- The real reason for dismissal was the claimant's insistence on a contractual £3k bonus, not poor performance.
- The respondent conceded procedural unfairness at the hearing.
- The claimant applied for hundreds of jobs but had not found new employment by the hearing.
- The compensatory award was capped at 52 weeks' pay due to the statutory limit.
Timeline
-
Employment started
Claimant started as Sales Manager with a £250k target.
-
First year sales
Claimant achieved sales of £30,860 against £250k target.
-
Discussion about dismissal
Claimant was told he would be dismissed to prevent him acquiring employment rights; a sham resignation and re-engagement was agreed.
-
Heart attack
Claimant had a heart attack and was off work for three weeks.
-
Positive sales meeting
Claimant was praised as hardest working employee; target was 3-4 systems.
-
Dismissal
Claimant was dismissed by phone for 'poor performance' without warning.
-
Notice extension offered
Respondent offered to extend notice by one month; claimant refused.
-
Tribunal hearing
Employment Judge Davies heard the case and found unfair dismissal.
The legal issue
The tribunal had to decide the compensatory award for unfair dismissal, including whether the claimant mitigated his loss and whether there was a chance he would have been fairly dismissed anyway.
The outcome
The tribunal found the dismissal unfair. The respondent conceded procedural unfairness at the hearing. The real reason for dismissal was the claimant's insistence on a contractual £3k bonus, not poor performance. The claimant had applied for hundreds of jobs but had not found new employment by the hearing. The compensatory award was capped at 52 weeks' pay due to the statutory limit.
- Basic award: £1,632
- Compensatory award: £37,440.52
- Total: £39,072.52
Lessons & takeaways
- Dismissing an employee by phone without any prior warning or process is almost certain to be unfair.
- If the real reason for dismissal is a dispute over contractual entitlements, the employer cannot dress it up as poor performance.
- Applying for hundreds of jobs can be sufficient to show reasonable steps to mitigate loss, even if no job is found.
- The statutory cap on compensatory awards (52 weeks' pay) can limit the amount awarded even if actual losses are higher.
What this case shows in practice
This case highlights the dangers of dismissing an employee without following any proper process. The sales manager had worked for Jansen UK Ltd for nearly four years when he was called and told he was being dismissed for poor performance. The real reason, however, was that he had insisted on being paid a contractual £3,000 bonus. The tribunal found the respondent's witnesses lacked credibility and that the claimant's evidence was truthful.
The claimant had achieved sales of only £30,860 against a £250,000 target in his first year, but the company had not raised any performance concerns or given any warnings. Instead, they had previously discussed dismissing him to prevent him from acquiring employment rights, and had even agreed a sham resignation and re-engagement. The dismissal by phone without any process was a clear procedural failure.
What the losing side could have done differently
Jansen UK Ltd could have avoided this outcome by following a fair capability procedure. If they genuinely believed the claimant was underperforming, they should have set clear targets, provided support, and given formal warnings before considering dismissal. They should also have been honest about the real reason for dismissal. The tribunal noted that the respondent's witnesses gave inconsistent evidence, which damaged their credibility. Proper documentation of performance discussions and targets would have helped.
Why the result matters for similar claims
This case shows that tribunals will look behind the stated reason for dismissal to find the real reason. It also demonstrates that even if an employee has not found a new job, applying for hundreds of jobs can be enough to show they have taken reasonable steps to mitigate their loss. The statutory cap on compensatory awards (52 weeks' pay) limited the award to £37,440.52, but the total of £39,072.52 still represents a significant sum for a relatively short-serving employee.
Similar cases
Dismissed without a disciplinary hearing: procedural unfairness costs employer £9,500
A former employee with two years' service was unfairly dismissed after being suspended and then sacked without any disciplinary hearing. The Cambridge tribunal awarded £9,546.81 in compensation.
Unfair dismissal compensation capped at £49,992 after redundancy with restrictive covenants
A head of investments was unfairly dismissed on redundancy grounds. The tribunal awarded £49,992 compensation, noting his reasonable fear of breaching broad restrictive covenants hindered his job search.
Constructive dismissal after eight-month wait for grievance outcome
An NHS employee resigned after waiting nearly eight months for her grievance outcome. The tribunal found she was constructively unfairly dismissed and awarded £3,756.60.
Trade promoter with 20 years' service unfairly dismissed but denied compensation over secret commission
The tribunal found the dismissal was procedurally unfair, but refused to award any compensation because after-dismissed evidence showed the employee had sought a secret commission from a customer.