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Employment tribunal

Managing director used expenses for drugs and prostitutes, tribunal told

A former managing director who was fired after spending thousands on unjustified expenses failed to win compensation for unfair dismal at an Employment Tribunal.

The worker was dismissed last year for spending company funds on drugs, prostitutes and holidays, the tribunal was told.

He then brought an Employment Tribunal for unfair dismissal claiming victimisation and sexual harassment.

The tribunal ruled the claims were not well-founded and said the case should not have been brought.

New rules which came into force last month now mean employees have to pay fees to bring a case to the Employment Tribunal in a bid to weed out ‘frivolous’ claims.

The tribunal was told by the company that the claimant had been suspended from his £180,000-a-year role in February 2012 over allegations relating to his use of company money.

He was later fired after it had emerged that he had spent more than £600,000 of the company’s money, including at least £90,000 on cocaine and prostitutes, £80,000 on flights and hotels for family and friends, and £145,000 on personal expenditure on gym memberships, haircuts, massages and clothes.

The Employment Tribunal criticised the former employee for bring the claim, stating that he had used the firm as a “private piggy bank” and that “something that struck the members of the tribunal forcibly was how such malfeasance could take place . . . without someone responsible for such matters noticing . . . We have formed the view that the claimant began his policy of embezzlement largely because he discovered he could get away with it”.

The Tribunal concluded the judgment by noting that this was a claim that “should never have been brought”.

If you have a case for unfair dismissal call PM Law solicitors in Sheffield on 0114 296 5444.

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