Mr Osipov was dismissed on the recommendation of two directors on the grounds that he had made a protected disclosure. A Tribunal found that this was an unfair dismissal. However the Company was insolvent and Mr Osipov argued that, by the directors conduct in dismissing him, they had subjected him to a detriment contrary to section 47B(1A) of the Employment Rights Act 1996. The Tribunal agreed.
The effect was that both the insolvent employer and the solvent directors were found to be jointly and severally liable to compensation Mr Osipoc for the losses suffered as a result of his dismissal.
The directors appealed, but the Tribunal's decision was upheld in both the Employment Appeal Tribunal and the Court of Appeal.
Employers and decision makers need to be particularly careful when dismissing an employee should a protected disclosure be made.
If a protected disclosure has been made, or if you require assistance in dismissing an employee then contact Greystone Legal today for a free, initial consultation.