A recent ruling in the Employment Tribunal has seen Royal Mail pay out its largest ever settlement of over £2 million to an employee in a case for unfair dismissal.

Facts of the case

Kam Jhuti worked for the Royal Mail as a media specialist. She started in her role in September 2013 and, in the following month, began to notice that a colleague was perhaps securing her bonuses illegitimately. Ms Jhuti raised these concerns with her boss, Mr Widmer, in November and she was required to provide evidence that supported her allegations. In a subsequent meeting with Mr Widmer, Ms Jhuti was told that, if the allegations were untrue, it would have an impact on her role. She therefore felt that her position was at risk if she pursued her claims so apologised and retracted the allegations.

After retracting her statement, Ms Jhuti was repeatedly told that she was not meeting the requirements of her role and was required to attend weekly meetings with Mr Widmer during which she was regularly told that her progress was disappointing. By January 2014, Ms Jhuti was suffering from a number of stress related issues. In February she was placed on a six-week performance improvement plan and, if she failed to comply with this, she would lose her job.

The way in which Ms Jhuti believe her colleague was hitting the performance targets that qualified her for the bonuses was by inappropriately offering Tailor-Made Incentives (TMIs). During her meeting with Mr Widmer, she was told that did not understand the TMI policy but a TMI expert in the business later confirmed that Ms Jhuti’s allegations were correct.

Due to Mr Widmer’s actions, Ms Jhuti contacted human resources and was appointed a new line manager. However, she was still told that she was not progressing as expected and was signed off from work in March 2014 as a result of work-related stress, anxiety and depression. Ms Jhuti never returned to work.

Outcome of the case

Ms Jhuti took Royal Mail to the employment tribunal in 2015 and was ultimately successful in her claims of unfair dismissal when the case was heard at the Supreme Court in 2019.

The Tribunal has now ruled that the total sum awarded to Ms Jhuti is £2,365,614.13. However, Royal Mail will not be required to pay the full amount until the outcome of their appeal has been decided. Until judgment in that appeal is heard, they must pay Ms Jhuti £250,000.

Whilst the judgment acknowledged that the facts of this case are quite rare, it is important for employers to ensure that their managers are adequately trained and equipped to deal with investigations and matters of whistleblowing.

If you have any queries regarding unfair dismissals, whistleblowing or any broader employment law issues, please contact Arvin Sandhu on 01494 521301.