Trader dismissed for alleged leak after raising mismarking concerns: unfair dismissal upheld

What this case shows in practice

This case illustrates how a fundamentally flawed investigation can render a conduct dismissal unfair, even when the employer had genuine concerns about a serious allegation. The claimant, a trader with seven years' service at EDF Trading Limited, was summarily dismissed for allegedly leaking confidential information about the French Desk's losses to external brokers. However, the tribunal found that the investigation was one-sided, the disciplinary hearing was unfair, and the appeal failed to address key exculpatory evidence — including the fact that the claimant was not the source of the leak.

What the employer could have done differently

EDF Trading could have avoided the finding of unfair dismissal by conducting a more balanced investigation, giving the claimant a proper opportunity to respond to the allegations, and ensuring the appeal process was thorough and independent. The tribunal noted that the appeal hearing manager did not properly consider evidence that pointed away from the claimant's guilt, and the process overall fell below the standard expected of a reasonable employer.

Why the result matters for similar claims

This decision reinforces that procedural fairness is critical in conduct dismissals, particularly where the employee has a long service record. It also highlights the high bar for proving automatic unfair dismissal for whistleblowing: even where an employee has made protected disclosures, they must show that the disclosure was the principal reason for dismissal. Here, the tribunal accepted that the claimant made qualifying disclosures about mismarking, but found that the employer's decision to dismiss was driven by the alleged misconduct, not the disclosures. For employees, this means that making protected disclosures does not automatically protect them from a fair dismissal for unrelated misconduct.