A recent decision by the EAT deals with the consequences of an employer’s failure to comply with the requirement to send a Step 1 Letter to an employee setting out the employee’s alleged misconduct.

An uplift of 40% on the compensation awarded to an employee was appropriate where a large employer failed to send a Step 1 Letter and had “blatantly failed to comply” with the statutory procedure.

The case shows that it is essential for employers to follow the statutory dismissal procedure correctly in order to avoid compensation payments being uplifted by up to 50%.

Metrobus Limited -v- Cook