An employment tribunal has ruled that the managing director of an electrical supplies firm who resigned during a dispute was unfairly dismissed.
The company accepted Mr Rae’s resignation following a dispute over worker’s salary increases. However, the tribunal found that his resignation had been unreasonable and was clouded by the directors’ ‘considerable ill-feeling’ towards him.
Mr Rae had proposed a five per cent pay increase for staff members in the sales team, with the exception of three members of staff who would receive a 25 per cent increase.
One of these staff members was Rae’s son, and two other directors believed that only the general five per cent increase and one other pay increase had been agreed.
Following the completion of the next month’s payroll, Rae found that his son and the other staff member’s salaries had not increased, and told one of the directors “I told you what was going to happen”, referencing a previous conversation in which he threatened to leave if the salary increases were not agreed upon.
Mr Rae was alleged to have stated “I resign” before leaving but disputed this. He then phoned the next day to inform one of the directors that it was not his intention to resign and that he would be seeing his doctor and would be taking some time off due to stress.
The judgement notes that Mr Rae’s decision was not in writing, which was a requirement of the firm. The ruling also stated that despite there being a general rule that once an employee has spoken ‘unequivocal and unambiguous’ words of resignation an employer can accept the resignation, there were certain instances in which these words could not be relied on.
Judge Nicol Hosie said: “The claimant had worked with his two fellow directors for almost 30 years. They were aware of how strongly he felt about the salary increases. It was clear that he was very angry when he said and acted the way he did on 21 March. He was not acting rationally.”