Dismissed without investigation: NHS Blood and Transplant ordered to pay costs for unreasonable defence
A former employee was unfairly dismissed after NHS Blood and Transplant failed to investigate allegations and later refused a £40,000 settlement offer. The tribunal awarded £96,447.50 in compensation and £8,012.40 in costs.
1 min read · Last updated 19 May 2026
Case details
- #unfair-dismissal
- #costs-award
- #failure-to-settle
- #character-attack
- #no-investigation
Key facts
- The claimant was dismissed by the respondent without proper investigation.
- The respondent could not articulate specific allegations against the claimant at the time of dismissal.
- The respondent expanded allegations during proceedings without supporting evidence.
- The claimant made a settlement offer of £40,000 which the respondent did not respond to.
- The tribunal found the respondent acted unreasonably in defending the claim.
Timeline
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Dismissal
The claimant was dismissed by NHS Blood and Transplant.
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Settlement offer
The claimant offered to settle for £40,000; the respondent did not respond.
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Chaser sent
The claimant chased the settlement offer.
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Respondent's reply
The respondent said it was considering the offer but needed Treasury approval.
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Hearing day 1
First day of the merits hearing.
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Oral judgment
The tribunal upheld the unfair dismissal claim and awarded compensation.
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Clarification request
The claimant asked for apportionment of the compensatory award.
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Costs application
The claimant applied for costs of £8,012.40.
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Costs hearing
The tribunal heard the costs and clarification applications.
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Costs judgment
The tribunal awarded costs of £8,012.40 and rejected the clarification request.
The legal issue
Whether the respondent acted unreasonably in defending the proceedings and failing to respond to a settlement offer, justifying a costs award.
The outcome
The tribunal upheld the claimant's unfair dismissal claim and awarded compensation.
- Basic award: £2,569.50
- Compensatory award: £93,878.00
- Total compensation: £96,447.50
- Costs awarded: £8,012.40
Lessons & takeaways
- Employers must carry out a proper investigation before dismissing an employee, even if they believe there is a case to answer.
- Failing to respond to a reasonable settlement offer can lead to a costs award if the case proceeds and the employer loses.
- Expanding allegations during proceedings without supporting evidence will be viewed unfavourably by tribunals.
- Costs applications are more likely to succeed where the respondent has acted unreasonably in the conduct of the proceedings.
A dismissal without proper process
This case shows what can happen when an employer dismisses an employee without a proper investigation. The former employee was dismissed by NHS Blood and Transplant, but the respondent could not articulate specific allegations at the time of dismissal. During the tribunal proceedings, the respondent expanded the allegations without providing supporting evidence, which the tribunal found unreasonable.
A settlement offer ignored
The claimant made a settlement offer of £40,000 before the hearing, but the respondent did not respond. The tribunal noted that the respondent had ample opportunity to settle the case and avoid the costs of a hearing. The failure to engage with the settlement offer was a key factor in the costs award.
What this means for similar claims
This case highlights the importance of proper investigation and reasonable conduct in employment disputes. Employers who dismiss without a fair process risk not only compensation for unfair dismissal but also costs if they act unreasonably in defending the claim. For employees, making a reasonable settlement offer early can strengthen a costs application if the employer refuses to engage.
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