Evidence in employment tribunals: pre-dismissal settlement negotiations.

EMPLOYMENT TRIBUNALS

Evidence

Pre-termination negotiations

Case   Gallagher v McKinnon Auto and Tyres [2024] EAT 174

Facts  G’s employment with MAT was terminated for redundancy. Before his dismissal he was offered a settlement agreement at an off the record meeting. He was offered £10,000 subject to a 48 hour deadline to respond. He complained of unfair dismissal. He sought to bring evidence of the offer. The ET ruled that this evidence was inadmissible because of section 111A of the Employment Rights Act 1996. This section, in outline, provides that evidence of pre-termination negotiations is not admissible in unfair dismissal claims except where there had been improper behaviour. The ET found that there had been no undue pressure or impropriety. The off the record meeting had been carried out in a clam and measured way. The 48 hour deadline had not been unreasonable. G appealed to the EAT.

Decision      1. The appeal was allowed.

2. The meeting and offer had been appropriately conducted and did not meet the threshold for improper behaviour.

3. The 48 hour deadline was reasonable.

4. Claims of improper behaviour need strong evidence.

5. The cumulative factors which G raised did not show undue pressure or a lack of fairness.