East Lancashire Coachbuilders v Hilton - True reason for dismissal was not misconduct [2006] EAT

Yet another case in which the reason given by an employer for a dismissal was found by a tribunal to be phoney. In this case a company director was dismissed, ostensibly on grounds of misconduct (claiming reimbursement of expenses incurred by his wife who accompanied him on a business trip to Mexico). However the tribunal found that the real reason for his dismissal was that other directors (with whom he did not get on) wanted to exclude him from a proposed share buyout. The EAT has found that the original tribunal was entitled to conclude that the dismissal was unfair.

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