When procedures trip you up: Lessons for employers

Lessons for employers from the Barclays sexual harassment/unfair dismissal case

A recent tribunal decision involving Barclays is a reminder that no employer, however large, is immune from getting it wrong when it comes to dismissals. The case centred on a financial adviser accused of making sexual remarks to female colleagues. Barclays decided to dismiss him, but the tribunal found that the process used was flawed and ruled the dismissal unfair.

For employers of all sizes, this is an important cautionary tale. You may not have the resources of a multinational, but the legal expectations are the same. If anything, the stakes can feel even higher for SMEs, where the impact of a claim can be both financial and reputational.

Follow a fair and transparent process

Any dismissal should be based on a process that is both thorough and transparent. This means taking the time to thoroughly investigate allegations, gathering all relevant evidence, and providing the employee with a fair opportunity to respond. Decisions should be made within a reasonable time and be based on facts, not assumptions. 

Keep accurate records

Good documentation can make the difference between a fair dismissal and a successful tribunal claim. Keep detailed notes of meetings, witness statements and any evidence considered during the investigation. These records can demonstrate that the process has been handled correctly and may be invaluable if your decision is later challenged.

Ensure impartiality

Where possible, investigations and disciplinary hearings should be handled by individuals who are impartial and have no prior involvement in the matter. In smaller organisations, this can be difficult, but impartiality is essential to ensuring fairness. If there is no suitable internal option in the business, consider using an external investigator.

Train your managers

Managers are often on the front line of disciplinary matters. Providing them with the right training means they will understand both your organisation’s policies and the legal principles of fairness and equality. This can help prevent procedural mistakes that lead to costly claims.

Address inappropriate conduct consistently

Remarks or behaviour of a sexual nature, even if presented as humour, can constitute sexual harassment under the Equality Act 2010. Employers should make clear what behaviour is unacceptable and ensure that complaints are addressed promptly and consistently.

Key takeaway

This case demonstrates that tribunals will always scrutinise the dismissal process, as well as the alleged misconduct.  So, regardless of whether the evidence of the misconduct is strong, there could still be a finding of unfair dismissal where there are procedural defects.  For SMEs, the risks are greater if policies are unclear, records are incomplete, or procedures are applied inconsistently. Taking the time to put robust processes in place and ensuring managers know how to follow them can protect your business from legal, financial and reputational damage.

If you are unsure whether your disciplinary procedures meet legal standards, our employment law solicitors can review your policies and guide you through fair and compliant processes. Contact us today to protect your business from costly claims.