Employment Law – ‘The Apprentice’ winner Stella English loses constructive dismissal case against Alan Sugar

In February this year, Stella English had lodged a claim for constructive dismissal against Alan Sugar claiming that she was just an “overpaid lackey”. Last month, the Employment Tribunal decided not to uphold her claim and found in favour of Alan Sugar.

Ms English, who earned £100,000 a year worked for Alan Sugar’s IT firm Viglen after winning The Apprentice in 2010.  She subsequently moved to another business also owned by Alan Sugar, YouView. Ms English claimed that while working for both of these companies she was given mainly administrative tasks and that she had no real duties. In September 2011, she was informed that her contract would not be renewed. Consequently, she argued that her employment was a sham and that Alan Sugar only gave her a job for ‘PR purposes’.

The Tribunal Judge stated that Ms English’s claim “should never have been brought”. He emphasised the fact that there was clearly no suggestion or assurance that Ms English would receive direct mentoring from Alan Sugar.

Constructive dismissal occurs when an employee has not been dismissed but resigns and can show that they were entitled to do so by virtue of the employer’s conduct. The following are some examples in which an employee may resign and bring a claim for constructive dismissal:

  • An employer unilaterally reduces an employee’s pay;
  • An employer changes the employee’s contractual duties (whether by removing some duties or requiring the employee to perform new ones);
  • An employer’s poor handling of a grievance;
  • An employer’s inept handling of a disciplinary matter (i.e. where the suspension or allegation is manifestly unreasonable); and
  • Excessive workload causing damage to the employee’s health. If the damage was reasonably foreseeable, the employee may have a claim in negligence against the employer and also a claim for constructive dismissal.

Constructive dismissal claims are notoriously difficult claims to bring because the burden of proof is on the employee. Whether or not the employer’s breach is serious enough to establish that the employee has been constructively dismissed will depend upon the particular facts and circumstances of each case.

If you are an employee considering resigning or the above listed examples sound familiar, we would strongly recommend that you seek legal advice prior to tendering your resignation. Please contact us for a free initial consultation.

If you are an employer, it is unusual that an employee would resign and claim constructive dismissal without first raising a grievance – we highly recommend that steps are taken at an early stage to resolve any difficulties in order to limit the risk of a potential claim. If you would like to arrange a discussion with a specialist employment law solicitor please click here .

Article written by Khurram Ahmad, Employment Solicitor at BPS

 

 

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