Dismissed due to family feud: breakdown of trust and confidence as 'some other substantial reason'
A senior administrator with 17 years' service was dismissed after a family feud made working relationships untenable. The tribunal upheld the unfair dismissal claim but found the reason for dismissal was potentially fair, though the process was flawed.
2 min read · Last updated 18 May 2026
Case details
Key facts
- The claimant was employed from 1 September 2004 until 1 February 2022.
- The respondent is a small family business with about 8 employees.
- The claimant's husband was a director and shareholder; the claimant was not.
- There was a long-standing feud between the claimant's family and the other director family.
- The claimant was dismissed after a meeting on 1 February 2022 due to a breakdown in trust and confidence.
- The claimant's net monthly salary was £3,450, but she was paid less in January 2022 and in notice/holiday pay.
Timeline
-
Employment commenced
Claimant started work as a part-time administrator for Solos Consultants Ltd.
-
Mother of brothers died
The death of Lee and Shaun Witts' mother removed a peacemaker, worsening family tensions.
-
Solos Residential sold
The residential lettings arm of the business was sold, but staff moved to recruitment, maintaining two teams.
-
Mediation report
A mediator reported that the business was suffering due to the feud between the brothers.
-
External HR instructed
Lee Witts informed the claimant he was instructing external HR support, citing impartiality issues.
-
Shaun Witts resigned
The claimant's husband resigned as a director and shareholder.
-
Meeting invitation
Lee Witts emailed the claimant inviting her to a meeting to discuss her future employment.
-
Dismissal meeting
The claimant attended a meeting with Lee Witts and was dismissed; a letter confirmed dismissal for breakdown of trust and confidence.
-
Claim presented
The claimant brought claims for unfair dismissal, wrongful dismissal, unlawful deductions, and holiday pay.
-
Liability hearing began
The three-day liability hearing commenced at Nottingham Employment Tribunal.
-
Judgment issued
Employment Judge Welch issued a reserved judgment dismissing the unfair dismissal claim but upholding other claims.
The legal issue
The tribunal had to decide whether the dismissal for a breakdown in trust and confidence (some other substantial reason) was fair, and whether the employer made unlawful deductions from wages and failed to provide a written statement of employment.
The outcome
The tribunal dismissed the unfair dismissal claim because the reason for dismissal (breakdown of trust and confidence) was potentially fair, but the employer failed to follow a fair procedure. However, the tribunal found that even with a fair procedure, the claimant would have been dismissed in any event (100% Polkey reduction), so no compensation was awarded for unfair dismissal.
Other claims succeeded:
- Wrongful dismissal (notice pay)
- Unlawful deductions from wages (underpayment in January 2022 and notice/holiday pay)
- Failure to provide a written statement of employment
A remedy hearing has been listed to determine the amounts owed.
Lessons & takeaways
- A breakdown in trust and confidence can be a potentially fair reason for dismissal, but employers must still follow a fair procedure, including giving the employee a chance to respond.
- In small family businesses, personal disputes can spill over into employment relationships; employers should seek external HR advice to ensure fair process.
- Employees with long service are entitled to proper notice and holiday pay; deductions without agreement or legal basis are unlawful.
- Employers must provide a written statement of employment within two months of start date; failure to do so can lead to a separate claim.
This case illustrates how personal relationships in a small family business can lead to a breakdown in trust and confidence that ultimately results in dismissal. The claimant, a senior administrator with 17 years' service, was caught in a feud between her husband and his brother, who were both directors and shareholders. After her husband resigned, the other director decided to dismiss her, citing the breakdown of the working relationship.
What the tribunal decided
The tribunal accepted that the breakdown in trust and confidence was a genuine 'some other substantial reason' for dismissal, which is a potentially fair reason. However, the employer failed to follow a fair procedure: the claimant was not given any prior warning, was not allowed to be accompanied, and was not given a chance to respond. The dismissal was therefore procedurally unfair. But the tribunal applied a 100% Polkey reduction, meaning that even if a fair procedure had been followed, the claimant would still have been dismissed. As a result, no compensation was awarded for unfair dismissal.
Other claims succeed
The claimant did succeed on other claims. The employer had underpaid her in January 2022 and failed to pay her full notice pay and holiday pay. These are straightforward breaches of contract and employment law. The tribunal also found that the employer had never provided a written statement of employment, which is a legal requirement. A separate remedy hearing will determine the exact amounts owed.
What this means for similar cases
This case is a reminder that even when a dismissal is for a potentially fair reason, the employer must still follow a fair process. However, the Polkey reduction shows that a tribunal can reduce compensation to zero if it believes the outcome would have been the same anyway. For employees in family businesses, it highlights the importance of having a written contract and keeping records of pay and hours. For employers, it shows the risks of letting personal disputes affect employment decisions without proper procedure.
Similar cases
Constructive dismissal after commission withheld and ultimatum given
An employee with 8 years' service was constructively dismissed after his employer withheld sales commission and gave him an ultimatum to pay money or be treated as resigned. The tribunal awarded £55,267.37.
Dismissed by father after family breakdown: WhatsApp message found to be unfair dismissal
A father who told his daughter 'I don't have a job for you, in fact I hope I never see u again' in a WhatsApp message was found to have unfairly dismissed her. The tribunal awarded £13,977.58.
Unfair dismissal and unlawful holiday pay deductions: former employee awarded over £9,300
A former employee of Craven Inns Limited has won claims for unfair dismissal, wrongful dismissal, and unlawful deduction from wages, receiving a total of £9,313.83 plus costs.
Farm manager removed as director: dismissal for breakdown in relationship was fair
A farm manager who was removed as a director and then dismissed was not unfairly dismissed, but the tribunal awarded him £3,077 for unpaid notice, holiday pay and expenses.