News Article

This case highlights the importance of following employment practices in small family run businesses.

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Feltham Management Ltd was set up and run by four siblings and their father. The claimant, Mrs J Feltham, was a Director and employee of the company in which her brother was the Managing Director. Her brother’s daughter was also an employee of the company and the claimant’s husband worked as a contractor for the company. On 15 August 2013, the claimant’s husband told her that he was leaving her as he had developed feelings for her brother’s daughter. The day ended with the family members getting involved and some harsh words being said. 

The Claimant walked out and subsequently fell ill as did her husband. Her pay was stopped at the end of August though her bene ts continued. Once she was ready to return to work, she apologised to her niece for shouting at her and over the next several months, tried to make amends including an offer for mediation. 

Her brother, the Managing Director, refused to let her return. Her P45 was issued in Dec 2014 and the company stated that as she walked out of the business on 15 August 2013 and did not return, this was taken as her resignation and therefore she was taken off the payroll. The company maintained that she was not entitled to any pay from August 2013. 

The ET reached its conclusions in favour of the Claimant that the dismissal was unfair and that she has been discriminated upon because of her sex. 

The company appealed on grounds of time, effective date of termination and sex discrimination. The EAT felt that the sex discrimination findings were not sufficiently addressed by the ET but upheld the ET’s other findings. This case has been remitted back by the EAT to the Employment Tribunal for reconsideration of its sex discrimination findings and whether direct discrimination arising out of non-payment of Claimant’s salary was because of sex. 

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