Search

How can we help?

Icon

Little white lies: not giving the true reasons for dismissal pointed to discrimination

This week, in Base Childrenswear v Otshudi, the Court of Appeal confirmed that not being honest about the reason for dismissal can show that the employer has a discrimination case to answer.

Ms Otshudi, a photographer of black African ethnicity, had less than two years’ service and was dismissed. She was told that the reason was redundancy but no process had been followed. She brought a claim that her dismissal was unlawful harassment related to her race. The employer defended the claim on the basis that it was a genuine redundancy. Faced with disclosure, it amended its defence to say the real reason was that the dismissing manager, of white British ethnicity, had genuinely believed that Ms Otshudi was intending to steal five items of clothing but had not wanted to confront her about this.

The Court of Appeal upheld the decision of the ET and EAT that the decision to dismiss was tainted with race discrimination: the manager had rushed to a conclusion that the Claimant was intending to steal on flimsy evidence which he realised would not support a dismissal on gross misconduct grounds.

From this, and the fact that the business had lied about the reason for dismissal, the Court of Appeal decided that the tribunal had been entitled to find that part of the manager’s reasons for acting this way was stereotypical prejudice based on the employee’s race, even if this was unconscious on his part.

The Court of Appeal upheld the decision of the ET and EAT that the decision to dismiss was tainted with race discrimination.

This case shows the danger of trying to take shortcuts in disciplinary matters. Employers need to be honest with themselves about why they prefer not to give the real reason for dismissal. It should always be a red flag to HR professionals if this is because the business wants to avoid carrying out a reasonable performance or conduct process.

For advice about carrying out disciplinaries or training regarding unconscious bias, contact our employment team.

Disclaimer
This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full General Notices on our website.

Author profile

About this article

Read, listen and watch our latest insights

art
  • 18 December 2025
  • Employment

Employment Law: Looking back at 2025 and what to expect in 2026

2025 has certainly been an interesting year for employment law. While the Employment Rights Bill has pulled much of the focus since it was introduced in October 2024, there have been other important updates this year as well.

art
  • 18 December 2025
  • Corporate and M&A

Deal Announcement: Clarkslegal’s corporate lawyers advise on the sale of Chatterbox Labs Limited to subsidiary of American tech giant

Clarkslegal’s corporate team, led by Senior Consultant Jon Chapman and supported by Senior Solicitor Emma Docking, advised the founders of Chatterbox Labs Limited on the sale of the AI security specialist to Red Hat, Inc., a wholly owned subsidiary of IBM.

art
  • 16 December 2025
  • Employment

Christmas Parties – Festive Fun or a New Year Hangover?

It’s Christmas party season! The office party is often a mixed blessing – an opportunity to boost morale and perhaps celebrate a successful year yet also a melting pot of workers letting their hair down, with potential for accidents, injuries, threats and claims.

art
  • 10 December 2025
  • Privacy and Data Protection

The 12 Data Protection Mistakes of Christmas

As the festive season approaches, it is not just last-minute shopping and office parties that can catch organisations off guard; data protection slip-ups are just as common.

Pub
  • 04 December 2025
  • Immigration

UK Immigration: What to expect in 2026 for employers

Join our UK immigration specialists, Ruth Karimatsenga and Monica Mastropasqua, as they explore the key updates and how they affect your business in 2026.

Pub
  • 04 December 2025
  • Corporate and M&A

Autumn Budget 2025 Breakdown: Key takeaways for business buyers and sellers

Join Stuart Mullins and Nicky Goringe Larkin as they delve into the key updates from the Chancellor’s announcement, with a focus on what matters most for businesses looking to buy and sell.