In the recent case of Potts v Urb-it (UK) Ltd, the tribunal awarded a sum in excess of £46,000 in relation to claims for automatic unfair dismissal as a result of whistleblowing.
The respondent in this case was a Swedish-based logistics organisation that used electric bikes to deliver goods. Mr Potts was the Head of UK Operations for the company.
The tribunal heard that Mr Potts raised his concerns with the CEO of Urb-it in relation to health and safety concerns, specifically that there was a high risk of fires in the company’s hubs due to the lithium batteries that they used to operate their bikes. This came after a fire incident nearby to one of the hubs back in 2022. Mr Potts even suggested a solution to the problem, namely installing fire-safe boxes for the batteries, but was told that funding constraints would prevent this from happening.
Mr Potts asked what steps would be taken by the company to mitigate this risk and also what his responsibilities would be as the UK director of the company if an accident occurred. The CEO insensitively responded stating all other directors were based in Sweden where companies could not be held liable for criminal acts. He also joked with Mr Potts that there was no extradition agreement with the UK and Sweden. The tribunal heard that Mr Potts raised his concerns on numerous occasions and was reminded of this same point.
Mr Potts took steps to resign in October 2022, after which a meeting was held where he again raised his concerns around health and safety.
Employment Judge Emery presiding over the case decided that Mr Potts had been forced to resign after raising numerous health and safety concerns and his manager did not appear to take the issue seriously. This was only compounded by the suggestion that Mr Potts alone would be liable should an incident occur.
EJ Emery stated that the treatment of Potts was a “repudiatory breach of contract, made because he raised whistleblowing allegations”, and that he had been “automatically constructively dismissed”.
This judgement highlights the importance of treating whistleblowing complaints seriously. The respondent’s dismissive attitude and failure to consider the gravity of the concerns ultimately led to Mr Potts feeling he had no other option but to resign, the tribunal agreeing as such.
When receiving whistleblowing complaints, employers should firstly consult any specific whistleblowing policy that they have and ensure that they take all relevant steps to treat concerns seriously. In absence of a specific policy, an employer should look to hold a meeting and discuss whistleblowing concerns further with the reporting employee before stepping away to conduct a full and thorough investigation.
If you are an employer who has received a whistleblowing complaint and require further guidance on how to deal with this matter, please contact our specialist employment and HR support team on 0161 696 6170 for further assistance.
Likewise, if you are an employee who has raised concerns that have not been taken seriously by your employer, or if you have been placed at a detriment as a result of raising your concerns, you may have grounds for claims for whistleblowing detriment or constructive unfair dismissal (if you have felt that you needed to resign as a result of your employer’s treatment). If you believe you may have a claim, please contact our specialist employment team on 0161 696 6170 or fll in our online enquiry form and we will contact you as soon as possible.
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