UK: dismissal for breakdown in relationships may, exceptionally, be fair despite lack of procedural steps

Based on unusual facts, the EAT in Gallacher v Abellio Scotrail has upheld an Employment Tribunal's decision that a dismissal without any procedural steps or appeal was fair.

The claimant employee was one of two senior managers whose relationship had completely and irretrievably broken down, a fact which she accepted. The tribunal found that trading losses had put the business under pressure and that a procedure would have made things worse not better, as the claimant clearly had no interest in trying to resolve matters. It was therefore entitled to conclude that dismissal was fair on the basis of a breakdown in trust and confidence, even where the decision to dismiss was made without forewarning at an annual appraisal meeting and no appeal was offered.

However, the EAT did caution employers that this would not be within the band of reasonable responses required for a fair dismissal save in exceptional cases, where "the procedural steps normally appropriate would have been futile, could not have altered the decision to dismiss and therefore could be dispensed with“.

Employers in a similar situation will need convincing evidence that the employee has no interest in trying to retrieve the relationship; a genuine offer to mediate will often be prudent as the employee's rejection of such an offer could provide the necessary evidence (and if the offer is accepted, the relationship might even be mended!).