Commercial manager dismissed for registering own company while employed by council

A conflict of interest that cost a career

The case shows how a failure to disclose a potential conflict of interest can unravel years of service, even when the employee had previously raised legitimate concerns about their employer's practices. The claimant, a Commercial Service Manager with 22 years' service, registered a private company with a similar name to his employer's business just days after emailing senior managers about what he called an 'unrecoverable and illegal situation' due to Brexit. He did not tell anyone at work about the company, and when asked directly about any conflicts of interest in a meeting two months later, he remained silent.

What the employer could have done differently

The council's investigation and disciplinary process were thorough. The claimant was suspended, investigated, and given a full disciplinary hearing with the opportunity to appeal. The tribunal noted that the disciplinary officer properly considered the claimant's long service and previously good record, but concluded that the breach of trust was too serious to allow the employment relationship to continue. The employer could have considered a lesser sanction, but the tribunal found that dismissal fell within the range of reasonable responses given the seriousness of the misconduct.

Why this matters for similar claims

This case reinforces that employees who set up competing or potentially conflicting businesses without disclosure are at high risk of dismissal for gross misconduct. Even strong whistleblowing claims will not protect an employee who has committed a clear breach of the employer's code of conduct. The tribunal also applied a 100% Polkey reduction, meaning that even if the procedure had been flawed, the outcome would have been the same. This is a reminder that tribunals will not compensate employees who would have been dismissed anyway, regardless of procedural errors.