What a £66k tribunal case means for your business

Guidance from an HR consultant in Thanet on what went wrong in a recent whistleblowing dismissal case and how to protect your business from making the same mistakes.

As a small business owner, you're probably handling people issues yourself, making quick calls based on what feels right at the time.

A recent tribunal case cost an employer over £66,000 because they did exactly that.

And from January 2027, the financial risk of getting a dismissal wrong is going up.

Here's what you need to know and what you can do differently.

What you should do when an employee raises a concern

Before we get into what went wrong in this case, let's start with the practical stuff. Because whether you've got a handful of staff or a much bigger team, the same principles apply.

If someone on your team raises a concern about a colleague or a manager, the first thing to do is take it seriously. That means properly looking into it before you make any decisions about that person's role or future.

It can be tempting to act quickly, especially if a client is involved or the situation feels urgent. But rushing to remove or dismiss someone without investigating their complaint first is where businesses come unstuck.

Here are some key things to keep in mind:

Investigate before you act. Even if the concern feels like a grumble, look into it. You need to understand what's been raised and whether there's substance to it.

A client request doesn't equal a fair dismissal. If a client asks you to take someone off a piece of work, that's a commercial issue you need to manage carefully. It doesn't give you grounds to end that person's employment.

Keep grievance and dismissal processes separate. The person dealing with a grievance should not also be the person deciding whether to dismiss. Mixing these up creates an impartiality problem that tribunals will pick up on immediately.

If you're relying on SOSR, make sure you can back it up. SOSR stands for "some other substantial reason" and it's a legitimate basis for dismissal in certain situations. But it needs solid evidence behind it. You can't use it as a catch-all when you're not sure what else to rely on.

 

The case: what actually happened

Andrew Estcourt worked as a chief engineer. He raised repeated concerns that his new manager lacked the technical competence needed for the role.

Instead of investigating those concerns, the business branded him as difficult and uncooperative.

A client then requested his removal from the project. The employer agreed and went on to dismiss him.

The tribunal found the dismissal was automatically unfair. Estcourt was awarded £66,295 plus £1,800 in costs.

The HR team involved were criticised for completely disregarding fair process.

Myth vs reality: common assumptions that get employers into trouble

"If a client wants someone gone, we have to let them go."

A client's request is a commercial consideration, not a legal justification for ending someone's employment. You still need to explore alternatives. Could the person be moved to a different project? Is there another role they could fill? Dismissal should be a last resort, not the default.

"They were just complaining about their manager. That's not whistleblowing."

It can be. If an employee raises concerns that relate to health and safety or legal compliance, those concerns may count as protected disclosures under whistleblowing law. Dismissing someone for making a protected disclosure is automatically unfair. It doesn't matter how polished your process looked on paper. The reason behind the dismissal is what counts.

"We used a proper reason for dismissal, so we're covered."

SOSR is a valid reason, but only when it's backed up with genuine evidence and a thorough investigation. Using it loosely, without doing the groundwork, leaves you wide open at tribunal. HR consultancy services in Thanet can help you assess whether you've got enough to stand on before you commit to a course of action.

Why January 2027 changes everything

Right now, there's a statutory cap on what a tribunal can award in most unfair dismissal cases.

That cap is being removed from January 2027.

So cases like this one, where the award was already over £66,000, could end up costing far more in the future. There'll be no upper limit on compensation for unfair dismissal.

For a small business, that kind of financial exposure is serious. Getting your processes right now isn't just good practice. It's essential protection for your business going forward.

 

Questions worth asking yourself

If you're reading this and thinking about your own business, here are a few things to reflect on:

1. If an employee raised a concern about their manager tomorrow, do you have a clear process for handling it?
2. Are the people who deal with grievances in your business completely separate from those who make decisions about someone's employment?
3. Could you confidently evidence the reason behind any dismissal you've carried out in the last couple of years?
4. Do you know the difference between an employee complaint and a protected disclosure?
5. Have you reviewed your processes recently in light of the upcoming changes to compensation caps?

If you're unsure on any of those, it's worth getting some support in place sooner rather than later.

Get in touch

If you're dealing with a tricky employee situation right now, whether it's a complaint about a manager, a client wanting someone removed, or a performance issue that's getting complicated, don't act without getting proper advice first.

As an outsourced HR consultant in Thanet, I can help you work through the situation properly and make sure you're protecting your business.

Get in touch and let's have a chat. I'm always happy to talk things through over a discovery call.