Unfair dismissal?

[garak112]

My dad had a disagreement with the CEO of his company, my dad is a director with minority shareholding, and the CEO holds a majority, which prevented the CEO taking a large amount of money out of the business to find his lifestyle (which was needed to continue funding the business).

Very shortly afterwards he was told he was being made redundant, the two things being very clearly linked.

Would this count as unfair dismissal?

 

[garak112]

There are two sides to every story, I very much doubt we've heard everything and therefore it's impossible to comment.

I agree, but the general idea is to comment based on what we know.

.....hmmm

how many other directors are there?

and redundancy isn't dismissal.

There's 6 or so - I was going by the advice on CAB which suggested that it might be.

Could also depend on what he is director of.

I'd consult professional advice.

I don't think he will do anything about it, but he's going to end up stuffed because he will only get statutory minimum redundancy pay.

 

[garak112]

CEO? Isn't that what the American use for Chief Executive Office? Might be wrong, but thought it was MD (Managing Director) over here, the top dog that is. Like Feek said though, the story is vague.

I thought this too but that's how he has listed himself on the company website.

Story is vague because he isn't willing to talk about it.

 

[garak112]

if he is a director and can prove what you are saying is true, then he can go to tribunal confidently.

there has to be more to it than this. is it a family business?

Not a family business.

The situation hasn't come completely out of the blue, other directors who helped found the company have been gotten rid of over the last few years after having disagreed with the CEO.

 

[garak112]

If it was something like a directors loan then it isn't really a dividend especially if it is detrimental to cashflow or will torpedo the business. As an FD he could refuse to sign it off...

This - the amount was so large that he convinced the other directors (including the FD) that it put the company in severe jeopardy.

 

[garak112]

As a director he must have a pretty poor contract if he is only entitled to statutory redundancy. It is complicated as it depends on how he employed as a director, is he a director shareholder, director employee, director office holder and so on...if he is a director as employee then he has to be treated as an employee and therefore the selection process must be fair and is the easiest way to remove a director....as an office holder there must be a procedure set out in the companies articles of association and these must be followed, including a vote by all the shareholders to remove.

Either way CAB isn't really the best place to get advice..contact ACAS and get specialist legal advice.

No idea how its structured, but I know it took him several years to get a contract. He didn't bother chasing it up because he trusted them.

 

[garak112]

Cheers guys, I'll advise him to talk to a lawyer.

 

[garak112]

Just an update.

My dad has been officially made redundant with 6 months notice.

The CEO has now engaged his services on a freelance basis to do the exact same job, having now forced through the taking of the money out of the company.