A lie!

The decision in a recent Employment Appeal Tribunal case (which employers will welcome), Daleside Nursing Home v Matthew (UKEAT/0519/08) confirmed that when the central allegation in a claim is found to be a lie, costs should be awarded against the Claimant raising the claim on the grounds that they have acted unreasonably.

This was a direct race discrimination claim where the Claimant alleged that her manager had called her a "black bitch" during a heated telephone conversation.  The Claimant waited 3 weeks before making the allegation during a disciplinary meeting.  The Tribunal concluded after hearing the evidence that the allegation was a lie because the phrase was so offensive that it was inconceivable that anyone would leave it that long before raising it.  Following this finding, the claim obviously failed but oddly the Tribunal failed to order costs in the Defendant's favour.  Their reason was that the Claimant had a genuine belief in her claim and had therefore not acted unreasonably in bringing the claim.

An appeal was lodged with the Employment Appeal Tribunal (EAT) who considered that because the allegation had been held to be a lie, it was wrong for the Tribunal to find that the Claimant had acted reasonably in bringing the claim.  The EAT therefore found that the Tribunal was also wrong to reject the Defendant's claim for costs.

This acts as a stark reminder that there are cost consequences for employees who make false or malicious allegations against their employers.

Where allegations of bullying, harassment or discrimination are made by employees, employers must ensure that they investigate the allegations properly.  Extra care must also be taken to ensure that detailed records are kept about the matter generally but specifically the investigations.  This is a tricky area so please contact the employment team if you have any questions or if we can assist in any way.