Dismissed for breaching a COT3 agreement: tribunal finds employer's belief unreasonable
A Customer Care Assistant with 10 years' service was unfairly dismissed after being accused of breaching a COT3 settlement agreement. The tribunal awarded £9,074, but applied a 50% Polkey reduction.
1 min read · Last updated 19 May 2026
Case details
- #cot3-breach
- #gross-misconduct
- #polkey-deduction
- #unfair-dismissal
- #whistleblowing-claim-dismissed
Key facts
- The claimant was dismissed for failing to follow a management instruction not to raise matters settled by a COT3 agreement.
- The tribunal found that the respondent's belief in misconduct was not reasonable because it failed to consider the context of each alleged breach.
- The claimant had raised health and safety concerns but the tribunal found no protected disclosure was made.
- A Polkey deduction of 50% was applied because there was a chance the claimant could have been fairly dismissed.
- The claimant obtained alternative employment and mitigated her loss.
Timeline
-
Employment started
Claimant began employment with the respondent as a Gateline Assistant, later becoming a Customer Care Assistant.
-
Stood off work
Claimant was stood off from work in 2019.
-
COT3 settlement
The 2020 proceedings were settled by a COT3 agreement; claimant agreed to return to the Onboard Role.
-
Return to work meeting
Claimant met with line manager to discuss return to work and training needs.
-
Email to HR Director
Claimant emailed the Director of HR asking to return to her Platform Role and for back pay.
-
Email raising safety concerns
Claimant emailed Ms Beech raising issues about unsafe working practices and training.
-
Management instruction
Ms White instructed the claimant not to raise matters settled by the COT3, warning of consequences.
-
Invitation to disciplinary hearing
Claimant was invited to a disciplinary hearing for alleged gross misconduct for breaching the management instruction.
-
Disciplinary hearing
Claimant attended a disciplinary hearing chaired by Diggory Waite.
-
Dismissal confirmed
Claimant was dismissed for gross misconduct.
The legal issue
The tribunal had to decide whether the claimant was unfairly dismissed for failing to follow a management instruction not to raise matters settled by a COT3 agreement, and whether she had made a protected disclosure.
The outcome
The tribunal found that the claimant was unfairly dismissed. The reason for dismissal was conduct, but the employer did not have a reasonable belief in the claimant's misconduct because it failed to consider the context of each alleged breach of the management instruction.
Compensation breakdown:
- Basic award: £5,139.00
- Compensatory award: £3,935.39 (after 50% Polkey reduction)
- Total: £9,074.39
Lessons & takeaways
- Employers must consider the context of each alleged breach of a management instruction, not just the fact that a breach occurred.
- A Polkey deduction can significantly reduce compensation if there is a chance the employee could have been fairly dismissed.
- Whistleblowing claims require a clear protected disclosure; raising health and safety concerns without meeting the legal test will not succeed.
- Long-serving employees are entitled to a fair process that takes into account their length of service and the circumstances of any alleged misconduct.
A dismissal that went too far
This case shows how an employer's failure to consider the full context of an employee's actions can make a conduct dismissal unfair. The claimant, a Customer Care Assistant with 10 years' service, was dismissed for breaching a management instruction not to raise matters settled by a COT3 agreement. The tribunal found that while the employer genuinely believed the claimant had breached the instruction, that belief was not reasonable because it did not examine the context of each alleged breach.
What the employer could have done differently
The employer could have avoided this outcome by taking a more nuanced approach. Instead of treating every communication as a breach, it should have considered whether the claimant was genuinely raising new issues or simply seeking clarification. A more thorough investigation, including looking at the content of the emails in context, might have led to a different conclusion. The tribunal also noted that the claimant's long service and unblemished record should have been given more weight.
Why this matters for similar claims
This case is a reminder that even when an employee has signed a settlement agreement, employers cannot assume that any subsequent communication is automatically a breach. The context matters, and a fair process requires a careful assessment of each situation. The 50% Polkey reduction also highlights that even when a dismissal is unfair, compensation can be reduced if there was a chance the employee could have been fairly dismissed. For employees, this case underscores the importance of keeping clear records of communications and seeking advice before raising concerns that might be seen as breaching a settlement.
Similar cases
Residential support worker dismissed for attending work with possible COVID-19 symptoms: dismissal fair
A residential support worker was fairly dismissed for gross misconduct after attending work while possibly having COVID-19 symptoms. The tribunal rejected her claims of unfair dismissal, race discrimination and victimisation.
Unfair dismissal but 100% Polkey reduction due to workplace closure
A former employee was unfairly dismissed but received only limited compensation because the tribunal found he would have been fairly dismissed a month later when the workplace closed. Total award: £12,419.29.
Former employee unfairly dismissed but gets only basic award after 70% contributory conduct deduction
A Watford tribunal found Mitie Ltd unfairly dismissed a former employee but reduced his basic award by 70% for his own conduct and made no compensatory award due to a 100% Polkey reduction. He received £1,298.10.
PCV driver dismissed after failing breath tests: flawed appeal but dismissal largely upheld
A PCV driver who failed three breath alcohol tests was unfairly dismissed due to a flawed appeal, but the tribunal found she would have been dismissed anyway and reduced compensation by 75% for contributory conduct.
