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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3653
Experience:  Solicitors 2 years plus PQE
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I have been forced into dismissal as a director of a company

Resolved Question:

I have been forced into dismissal as a director of a company by the other directors, I had no shares in the company and they are asking me to stay on in a lesser role albeit with no reduction in salary. The problem is that i am so annoyed with the situation I feel that had I been made redundant it would have given me some cash to find another job and leave the company with my dignity intact. I have told the MD this but he refuses to make me redundant which has annoyed me even more. Where do I stand legally on this matter they have not given a reason why they have dismissed my directorship other than they want to employ a director with more experience than me. I have worked for the company for 4 years.
Your help would be appreciated.
Many Thanks
Andy
Submitted: 2 years ago.
Category: Law
Expert:  Alex J. replied 2 years ago.
Hi,
Thank you for your question and welcome.
My name is ***** ***** I will assist you.
Do you have an employment contract?
Does it contain a notice period?
Kind regards
AJ
Customer: replied 2 years ago.

Hi AJ

Yes the contract of employment has a notice period of 3 Calendar Months.

Thanks

Andy

Expert:  Alex J. replied 2 years ago.
Hi,
Thank you.
If you are an employee as well as a director, being moved to a lesser role could be used as grounds for constructive dismissal- if you leave of your own accord.
https://www.gov.uk/dismissal/unfair-and-constructive-dismissal
As you have been there for four years this would qualify you for a claim for unfair dismissal as well.
There a two elements to unfair dismissal a basic award and a compensatory award for your loss. The basic award is calculated similar to redundancy based on age and length of service.
You will have to make a decision whether you want to leave of your own accord. Before doing so I would go and speak to a solicitor first and line up your claim to send as soon as you leave. In all likelihood your employer will want to try and settle any claim, but you may be force to go all the way to a tribunal - and really you need a solicitor to do this for.
Have they changed your job title?
I look forward to hearing from you.
Kind regards
AJ
Customer: replied 2 years ago.

Hi AJ

They have changed my job title from Group Technical Director to Engineering Manager. When I explained to the MD I would have rather be made redundant he told me that he would give me one months pay to go. This seems unfair to me because I reckon I would be owed 3 Months Notice + Redundancy at 6 Weeks pay because I am over 45 and all my holiday entitlement which is significantly more than the 1 month that he has offered. The other alternative would be to carry on working there as an Engineering Manager and feel demoralized which I do not want to do.

Do you think I have any chance of bringing a case against them? Or am I best accepting the role and finding a better job over time?

Regards

Andy

Expert:  Alex J. replied 2 years ago.
Hi,
Thank you.
I do think you would have a case against them however if you just change jobs you won't necessarily be able to bring such a claim.
In order to have a claim for constructive dismissal you would have to leave first.
Are you prepared to leave? Or would you rather leave to another role?
Kind regards
AJ
Customer: replied 2 years ago.

Aj

The problem with just leaving is my responsibilities to my family and the length of time it may take to bring the case to a hearing. That is why I would have to find something else pretty quick.

Regards

Andy

Expert:  Alex J. replied 2 years ago.
Hi,
Employers cannot claim fees in the employment tribunal, so hopefully they would settle with you before the claim is finished.
Unfortunately you will have to take this decision either way if you want to leave or leave and bring a claim.
You can look for and accept a new job as the claim is going on.
Do you know how your company normally reacts to employment claims? Will they settle or defend them all the way?
Kind regards
AJ
Customer: replied 2 years ago.

Should I just leave? Or take his offer of 1 month? or give 3 months notice leave and then start the process?

Thanks

Andy

Expert:  Alex J. replied 2 years ago.
Hi,
Thank you.
If you take his offer of one month you can still bring a claim as long you do not accept it to give up your employment rights in return. If you accept the one month pay will you be allowed to leave immediately?
I would recommend that before taking a decision go and see a local solicitor and at least have your claim lined up and ready to send to them as you leave (if you are going to leave).
Kind regards
AJ
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