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The dangers of dismissing employees over customer complaints
Written by Jane Hallas on 27 September 2024
As a business owner or HR professional, protecting your company’s reputation is paramount. As such, when a customer is offended by a staff member’s actions, employers often feel compelled to act swiftly to preserve relationships and safeguard their image.
However, in the rush to appease disgruntled customers, employers must balance this with the rights of their employees. Failing to handle such situations carefully can result in costly and damaging legal consequences, as demonstrated in a recent Employment Tribunal case.
In this blog, we will explore the risks of hastily dismissing staff over customer complaints and how to navigate these situations to avoid ending up in court.
Jones v Vale Curtains and Blinds
In a recent Employment Tribunal case, Meliesha Jones, a part-time administrator at Vale Curtains and Blinds, won over £5,000 after being unfairly dismissed for mistakenly sending an offensive email to a customer. Jones, employed since 2021, was handling a customer complaint with her colleague Karl Gibbons when she accidentally hit “reply” instead of “forward” and sent the email to the customer. In the email, she referred to the customer as a “tw*t” due to frustrations over repeated complaints about his order.
The customer’s wife promptly called the company, confronting Jones about the email. Shocked and upset, Jones apologised profusely and later offered to pay the customer £500 out of her own pocket as a goodwill gesture. However, the customer threatened to go to the press and post negative reviews on social media. The company investigated the incident but failed to follow proper disciplinary procedures, not interviewing either Jones or the customer.
The Tribunal ruled the dismissal a “sham” that was primarily designed to placate the customer, who had threatened to publicise the incident, rather than to address the issue fairly. The Judge noted that the process was flawed and that had proper procedures been followed, Jones would not have been dismissed. As a result, Jones was awarded £5,484.74 in compensation for unfair dismissal.
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Lessons for employers
This case underscores the importance of adhering to fair and transparent disciplinary processes, even when under pressure from unhappy customers. Mistakes, such as sending messages to the wrong person, can happen to anyone – after all, even high-profile figures such as Alastair Campbell have fallen victim to similar email mishaps.
The key takeaway for employers is that rash decisions driven by reputational concerns can backfire, potentially landing your company in an Employment Tribunal, which can do more harm to your image in the long run.
Each case will turn on its facts, and employers must take a measured approach when handling misconduct allegations. Here are some key steps to consider:
Investigate thoroughly and impartially
Before making any decisions, ensure a fair and detailed investigation takes place. The investigator should be a different person from the disciplinary officer. In Jones’ case, the supervisor was both the investigator and disciplinary officer and failed to interview either the employee or the customer, which was a critical misstep.
Avoid snap decisions
While it may be tempting to quickly dismiss an employee to appease a customer, it’s crucial to evaluate the facts objectively and correctly identifying the potentially fair reason, as reacting out of fear of reputational damage can lead to costly legal consequences.
Here the employer could have used the potentially fair reason of “some other substantial reason” based on the customer’s complaints. In this case, the Tribunal said the evidence showed that the principal reason for dismissal was not the misconduct but the customer and his wife’s threats to publicise the Claimant’s email in the press, social media and/or Trustpilot.
Follow proper disciplinary procedures
Ensure that you follow a clear, documented process for addressing employee misconduct. Proper procedures should include a thorough investigation, sufficient time to prepare for the disciplinary hearing, opportunity for defence, evidence collection, written reasons for dismissal and a right of appeal, all of which were missing in this case.
Ensure that the decision is only taken after all evidence is considered and is the decision of the disciplinary officer alone
In Jones’ case, the decision appeared to have been made prior to the hearing when the Managing Director had told the Claimant’s Supervisor that she should “get rid” of Jones. The Tribunal found that although the Supervisor was the disciplinary officer, she was not the decision maker.
Consider mitigating factors and alternative resolutions
Not every mistake warrants dismissal. In some cases, a formal warning, retraining, or even an apology might be more appropriate and less legally risky. Mitigating factors should also be considered; here the Claimant had apologised and offered to compensate the customer.
Ultimately, rushing a process to appease a customer could expose your company to legal action. Protecting your reputation is important, but safeguarding employee rights and ensuring fair treatment are equally crucial to avoid a Tribunal – and the negative publicity that comes with it.
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Thinking about dismissing an employee?
It’s always best to seek specialist advice before taking action. WorkNest’s Employment Law and HR experts can guide you through these tricky situations, ensuring you follow a fair process and make informed decisions. We can also help develop your policies and provide training for your HR and management teams, further protecting your business from legal risks.
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