Managing director with 31 years' service dismissed without process: unfair and wrongful dismissal
A managing director with 31 years' service was unfairly and wrongfully dismissed after being told his employment was ending at a hotel meeting, with no prior investigation or disciplinary process. The tribunal awarded £61,625.82.
1 min read · Last updated 19 May 2026
Case details
- #long-service
- #pre-judged-dismissal
- #acas-code-uplift
- #contributory-fault
- #wrongful-dismissal
- #polkey-period-of-loss
Key facts
- The Claimant was employed from 1 November 1991 until 31 October 2022 as Managing Director.
- The Respondent decided to end the Claimant's employment before any formal investigation or disciplinary process.
- The Claimant was told at a meeting on 28 September 2022 that his employment was ending and was invited to propose a settlement sum.
- No settlement agreement was ever concluded, and the Claimant was not paid any notice or termination payment.
- The Tribunal found the real reason for dismissal was capability, not conduct, and the dismissal was procedurally unfair.
- The Claimant was awarded a basic award of £12,205.14, a compensatory award of £24,420.68, and wrongful dismissal damages of £25,000.
Timeline
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Employment commenced
Claimant started work as External Technical Sales Engineer.
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Promoted to UK Manager
Claimant became Manager of the UK Company.
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New contract signed
Claimant entered into a new contract with a nine-month notice clause.
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Mr Hunn joined
Mr Hunn became Sales Director Central and SW Europe.
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Internal letter references replacement
Dr Hesse's letter to Mr Hunn referred to 'imminent replacement of management at EMKA UK'.
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Meeting at Crowne Plaza Hotel
Claimant was told his employment was ending and invited to propose a settlement sum.
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Claimant proposed settlement sum
Claimant proposed £34,040 without legal advice.
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Respondent accepted sum
Respondent accepted the sum but no settlement agreement was concluded.
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Employment terminated
Effective date of termination; Claimant ceased to be a director.
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Remedy hearing
Tribunal awarded basic award, compensatory award, and wrongful dismissal damages.
The legal issue
The tribunal had to decide whether the claimant was dismissed or resigned by mutual agreement, and if dismissed, whether the dismissal was fair and whether the claimant was wrongfully dismissed.
The outcome
The tribunal found that the claimant was dismissed, not that he resigned by mutual agreement. The dismissal was unfair because the employer had already decided to end his employment before any investigation or disciplinary process. The real reason was capability, not conduct, but even if it had been conduct, the employer did not follow a fair procedure.
The tribunal also found that the claimant was wrongfully dismissed because the employer failed to prove gross misconduct, so the claimant was entitled to his nine-month notice period.
Compensation:
- Basic award: £12,205.14
- Compensatory award: £24,420.68 (reduced by 25% for contributory fault)
- Wrongful dismissal damages: £25,000
- Total: £61,625.82
Lessons & takeaways
- Long-serving employees are entitled to a fair process before dismissal, even if the employer believes there are performance issues.
- A meeting to discuss a settlement is not a substitute for a proper disciplinary or capability process.
- Employers should not pre-judge dismissal before giving the employee an opportunity to respond.
- If an employer fails to follow contractual notice provisions, they may be liable for wrongful dismissal damages.
A 31-year career ended without process
This case highlights what can happen when an employer decides to end a long-serving employee's employment without following any formal process. The managing director had worked for EMKA (UK) Limited for 31 years, rising from external technical sales engineer to managing director. In September 2022, he was called to a meeting at a hotel and told his employment was ending. He was asked to propose a settlement sum.
No settlement agreement was ever concluded, and the employer did not pay any notice or termination payment. The tribunal found that the employer had already decided to dismiss the claimant before any investigation or disciplinary process. The decision was made at a senior level, with internal correspondence referring to the 'imminent replacement of management at EMKA UK'.
What the employer could have done differently
The employer could have avoided this outcome by following a proper capability or performance process. If there were genuine concerns about the claimant's performance, the employer should have investigated those concerns, given the claimant an opportunity to respond, and considered alternatives to dismissal. Instead, the employer presented the claimant with a fait accompli. The tribunal also noted that the employer failed to follow the ACAS Code of Practice on disciplinary and grievance procedures, which led to an uplift in compensation.
Why this matters for similar claims
This case is a reminder that even senior employees with long service are entitled to a fair process. Employers cannot simply decide to end an employment relationship without following proper procedures, especially when the employee has a contractual notice period. The award of £61,625.82 reflects both the unfair dismissal and the failure to pay notice. For employees in similar situations, this case shows the importance of understanding that a meeting to discuss a settlement does not replace a fair dismissal process. If you are told your job is ending without any prior process, you may have claims for unfair and wrongful dismissal.
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