Help with bogus claim against a company.

[Nem]

A former employee has made a bogus claim for Constructive Unfair Dismissal, Protected Disclosure and Sex Discrimination, which is being pushed through by an “no win-no fee” solicitor. The basis of this claim is based on an allegation (it has been reported to police without a ruling or judgment) by the former employee and there is no real proof beyond the allegation. The solicitor is asking us to “settle” out of court but we feel this is a contrived plan to extract money from the business. We are being threatened with court costs if we proceed to the Employment Tribunal to prove this is a bogus claim. We wanted to ask on this forum if it is possible to counter-sue for making a false allegation against the business with the aim of extracting money?
Thanks for your help.

[CleverClogs]

Re: Help with bogus claim against a company.

Did the former employee quit or were they dismissed?

Did they resign just before they were due to be dismissed?

What losses would the business suffer from defending the claim?

[bluebottle]

Re: Help with bogus claim against a company.

In the same way the former employee has to prove they were Constructively and Unfairly Dismissed due to a Protected Disclosure and Sex Discrimination, you have to prove the allegations you are now making against them. Do not forget that dismissal for a Protected Disclosure is deemed Automatic Unfair Dismissal. Unless you have strong and compelling evidence that the allegations the former employee is making are totally without foundation, you could find yourselves up Crap Creek without a paddle, in the legal sense.

If you attempt to pursue a civil claim based on a feeling that the former employee's claim is a contrived plan to extract money from the business and either have weak evidence or no evidence at all, a Circuit or District Judge could end up tearing your case to shreds and landing you with an order for costs.

The questions that you need to ask yourselves are -

1. Is there or could there be substance to the former employee's allegations?
2. Do we have any evidence, capable of standing up to cross-examination, that the allegations are a contrived plan to extract money from the business?

What is the nature of the allegation being made by the former employee?

[Nem]

Re: Help with bogus claim against a company.

@cleverclogs
Did the former employee quit or were they dismissed? Resigned six weeks after the alleged incident

Did they resign just before they were due to be dismissed? No, we didnt intend to dismiss or made any plans to do so but she claims it was Constructive dismissal.

What losses would the business suffer from defending the claim? Do you mean defending her claim against us? If so we stand to incur legal costs to defend our claim that this is purely an attempt to gain money. To persue a false allegation claim - I am not sure I guess we could be liable for court costs if the judge rules in her favour.

[charitynjw]

Re: Help with bogus claim against a company.

This may just be a speculative claim, hoping to scare you into capitulation.

Without a lot more info, it is not really possible to give an informed opinion.

What are your legal bods doing?

[CleverClogs]

Re: Help with bogus claim against a company.

What was the alleged incident?

What, if anything, was done about it?

[Nem]

Re: Help with bogus claim against a company.

@bluebottle we have evidence that no sexual descrimination occured and the fact that she is looking for cash settlement is proof to us this claim is driven for monetary gain....not sure this would be enough in court though but in real life it is clear as day....

1. Is there or could there be substance to the former employee's allegations? The police investigation has come up with nothing. There are no witnesses apart from her in regards to the alleged sexual assault (claimed to be minor touching). The letter from her solicitor claims we tried to stop her going to the police but we didnt, we complied with the police and have email evidence to show it.
2. Do we have any evidence, capable of standing up to cross-examination, that the allegations are a contrived plan to extract money from the business?
Only what I have mentioned above.

thanks so much!

[charitynjw]

Re: Help with bogus claim against a company.

The chances of being successful with a claim for Constructive Unfair Dismissal are extremely low (from memory, about 3%)

[bluebottle]

Re: Help with bogus claim against a company.

@cleverclogs
Did the former employee quit or were they dismissed? Resigned six weeks after the alleged incident

Did they resign just before they were due to be dismissed? No, we didnt intend to dismiss or made any plans to do so but she claims it was Constructive dismissal.

What losses would the business suffer from defending the claim? Do you mean defending her claim against us? If so we stand to incur legal costs to defend our claim that this is purely an attempt to gain money. To persue a false allegation claim - I am not sure I guess we could be liable for court costs if the judge rules in her favour.

As stated previously, do you have any evidence that the former employee's claim is "purely an attempt to gain money"? Do you also have evidence that the allegation is false? Bear in mind that if a judge ruled in the former employee's favour, you not only risk an order for costs, but Loss of Reputation, also. The losses that could incur could far outweigh any attempt to litigate.

Could you please provide details of the allegation and why you consider the former employee's claim to be false and an attempt to extract money from the business? You also mention the allegation has been reported to the police. Why is this so?

[charitynjw]

Re: Help with bogus claim against a company.

Re the protected disclosure angle, does it reveal an alleged course of conduct which would affect others apart from this employee, or was it a discrete (one-off(ish)) incident relating just to them?

[Nem]

Re: Help with bogus claim against a company.

@bluebottle, As stated previously, do you have any evidence that the former employee's claim is "purely an attempt to gain money"? Yes, she is suing us.
@charitynjw one off alleged incident, never happened before

[Nem]

Re: Help with bogus claim against a company.

we believe the allegation was reported to the police to give the claim more substance and therefore support her claim (attempt to gain funds)

[bluebottle]

Re: Help with bogus claim against a company.

@bluebottle we have evidence that no sexual descrimination occured and the fact that she is looking for cash settlement is proof to us this claim is driven for monetary gain....not sure this would be enough in court though but in real life it is clear as day....

1. Is there or could there be substance to the former employee's allegations? The police investigation has come up with nothing. There are no witnesses apart from her in regards to the alleged sexual assault (claimed to be minor touching). The letter from her solicitor claims we tried to stop her going to the police but we didnt, we complied with the police and have email evidence to show it.
2. Do we have any evidence, capable of standing up to cross-examination, that the allegations are a contrived plan to extract money from the business?
Only what I have mentioned above.

thanks so much!

It depends on what "minor touching" means. What you may perceive as "minor touching" may not be what the law considers to be "minor touching". To be honest, I think you need to let us have full details of the alleged incident and allegations the former employee has made in connection with it in order to be able to help you.

Simply because a former employee is suing you does not, in itself, amount to "an attempt to extract money from the business".

[charitynjw]

Re: Help with bogus claim against a company.

FWIW, I believe that Employment Tribunal decisions are loaded heavily in favour of the employer.
&, in my opinion, rightly so!
Commerce couldn't operate if the employer was petrified because of potential claims, especially when they are usually held vicariously liable for the actions of others.
Therefore, any claim needs to be justified & well evidenced.
Otherwise, employment would become extremely nepotist.

[wales01man]

Re: Help with bogus claim against a company.

Have to ask if the OP is sure this is just an attempt to gain from a false allegation why are the so unsure of defending it?Minor touching could mean lots of things depends I suppose what was touched