Unfair/Constructive Dismissal

Dippydoo2020

I need some advice please.

My employer has recently let me go and I am totally confused about the whole situation.

I was a company director and back in November I was informed by the business owners that they were demoting me from Managing Director to Sales Director and bringing in a business consultant who would basically be responsible for all the business decisions. Nothing was ever received in writing and to be honest I am not certain was ever fully implemented.

When I returned after the Xmas break I emailed the 2 business owners contesting the decision and asked for a meeting as I had basically been frozen out of the business and was not longer even being copied into emails and no one was responding back to my emails.

The following day we had a meeting and it was clear how the meeting was going to play out, I explained how not receiving any written confirmation of the demotion and not being allowed to contest the decision was not the right way to conduct this and they basically were forcing me out of the business to which they agreed and they basically said they were letting me go as I have been there in excess of 2 years they were making me redundant.

The owner has agreed to pay me my 3 months notice each month for the next 3 months however he is paying this of the books as a Nett Figure.....so he can save the PAYE element.

I recorded the meeting as they never put anything in writing and I wanted to cover myself.

The fact that no consultation period was implemented and no mention of performance or a performance review and I have never had a disciplinary hearing since joining them either?

The way he proposes to pay me the notice period is also 100% wrong and doesn't even equal a redundancy as nothing additional is included just 3 months wage. Plus as he is just paying me the nett wage figure for 3 months and keeping the PAYE element himself this is all clearly underhand.

Would this constitute wrongful dismissal and have I got a case to take this to a tribunal?

getmore4less

HMRC will be interested in this tax evasion.

Have they terminated the contract or put you on garden leave?

Dippydoo2020

I was put on Gardening Leave until April, but they haven't put anything in writing but then they never did.....that's why I recorded the last meeting we had so I at least had a record of the outcome.

Blatchford

How long had you worked there?

auntie_pie

Have you contacted ACAS as they can advise

Scorpio33

They are framing it as redundancy.

If there are less than 10 of you, there is no need for a consultancy period at all. What they have done can be legal. Officially, they will say your old role are MD is redundant, as they now have a business consultant role which will pick up much of what you do (but of course is a different role).

Sorry to say, but I can't see an angle as to how this could be unfair dismissal

Dippydoo2020

I have worked there for just over 2 years.

The unfair part as I see it was surrounding the demotion, as a Director at the very least there should be a Board Meeting and a vote... there were no grounds to demote me as no consultation was conducted and no performance review was ever conducted.

I sat on the news waiting for something formal in writing for 4 weeks and nothing was received and no announcement was made outside of the directors.....

Then I called a meeting for the 7th Jan as I had completely been frozen out I was omitted from emails but another Director was informing me of what was going on......

My emails went unanswered and phone calls ignored......

Surely this cannot be deemed as normal behaviour and the fact they now want to pay me under the radar of HMRC surely is an indication of how low the owners will stop.

Takeaway_Addict

Dippydoo2020 wrote: »

I have worked there for just over 2 years.

The unfair part as I see it was surrounding the demotion, as a Director at the very least there should be a Board Meeting and a vote... there were no grounds to demote me as no consultation was conducted and no performance review was ever conducted.

I sat on the news waiting for something formal in writing for 4 weeks and nothing was received and no announcement was made outside of the directors.....

Then I called a meeting for the 7th Jan as I had completely been frozen out I was omitted from emails but another Director was informing me of what was going on......

My emails went unanswered and phone calls ignored......

Surely this cannot be deemed as normal behaviour and the fact they now want to pay me under the radar of HMRC surely is an indication of how low the owners will stop.

Its been a week since your first post- have you seen someone with legal experience? If not why not?

Surely its best to spend a little to know exactly where you stand and then move in the best direction?

Undervalued

Dippydoo2020 wrote: »

I have worked there for just over 2 years.

The unfair part as I see it was surrounding the demotion, as a Director at the very least there should be a Board Meeting and a vote... there were no grounds to demote me as no consultation was conducted and no performance review was ever conducted.

I sat on the news waiting for something formal in writing for 4 weeks and nothing was received and no announcement was made outside of the directors.....

Then I called a meeting for the 7th Jan as I had completely been frozen out I was omitted from emails but another Director was informing me of what was going on......

My emails went unanswered and phone calls ignored......

Surely this cannot be deemed as normal behaviour and the fact they now want to pay me under the radar of HMRC surely is an indication of how low the owners will stop.

Is this a limited company?

If so were you listed as a director at Companies House?

If so, unless I am out of date, a director can only be removed against their will by a unanimous resolution of the other directors.

As TA has said you need to seek proper legal advice.

HampshireH

You were put on gardening leave in April but then were told of a demotion in November before being made "redundant" in January.

What happened between April and November?

I was put on Gardening Leave until April, but they haven't put anything in writing but then they never did.....that's why I recorded the last meeting we had so I at least had a record of the outcome.

wilfred30

HampshireH wrote: »

You were put on gardening leave in April but then were told of a demotion in November before being made "redundant" in January.

What happened between April and November?

I read it that the OP was demoted in November 2019 and put on garden leave in January 2020 which will end in April 2020. Not sure if that's right though.