Directors personally liable for whistleblowing dismissal and £2m compensation

S. 47B of the Employment Rights Act 1996 makes an individual worker liable for subjecting a colleague to a detriment for whistleblowing, as well the employer being liable itself.
whistleblowing

S. 47B of the Employment Rights Act 1996 makes an individual worker liable for subjecting a colleague to a detriment for whistleblowing, as well the employer being liable itself. In Timis and Sage v Osipov, two IPL directors, Timis (T) and Sage (S) summarily dismissed Osipov (O). An ET upheld O’s claim that: (i) he was unfairly dismissed for whistleblowing, having disclosed that T and S were involved in serious wrongdoing; and, (ii) T and S had subjected O to the detriment of dismissal contrary to S. 47B of the ERA 1996. The ET decided that T and S were jointly and severally liable, with IPL, for compensation totalling £1,744.575.56. The EAT upheld the ET’s decision, agreeing that both directors were personally liable to pay compensation, which was recalculated at £2,003,972.35. The Court of Appeal agreed with the EAT. An employee can bring a claim against an individual co-worker for being subjected to the detriment of dismissal and a claim based on such a distinct prior detrimental act done by a co-worker allows for recovery from that worker for losses flowing from the dismissal.


This update provides summary information and comment on the subject areas covered. Where employment tribunal and appellate court cases are reported, the information does not set out all of the facts, the legal arguments presented and help judgments made in every aspect of the case. Click on the links to access full details. If no link is provided, contact us for more information.  Employment law is subject to constant change either by statute or by interpretation by the courts. While every care has been taken in compiling this information, SM&B cannot be held responsible for any errors or omissions. Specialist legal advice must be taken on any legal issues that may arise before embarking upon any formal course of action.

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