Skipton Group Holdings and Connells have lost an employment tribunal case brought by former Connells Group chief executive David Livesey, who successfully claimed unfair dismissal and age discrimination.
The tribunal found that Livesey (main picture, inset) was constructively dismissed after Connells breached his employment contract and sought to remove him “as quickly and as inexpensively as possible”.
Skipton Group Holdings, part of the group headed by Skipton Building Society, was found to have played an integral role in the conduct that amounted to less favourable treatment because of Livesey’s age.
No compensation has yet been determined. The £7 million previously reported in connection with the case was the value of Livesey’s claim and is not an award made by the tribunal.
SKIPTON EXECUTIVES ‘INTEGRAL’ TO DECISIONS
Livesey worked for Connells for 33 years and served as group chief executive from 2008 until his departure in December 2023, when he was 64.
The tribunal found that Connells improperly placed him on garden leave, attempted to backdate his contractual notice period and removed him as a director without his knowledge or consent.
It described the September 2023 meeting at which he was removed from the business as an “ambush” and found that Connells failed to apply an appropriate dismissal process.
The judgment said executives and boards within the Skipton group had fully participated in decisions concerning Livesey’s notice arrangements, removal as a director, constructive dismissal and treatment under the Condor 3 long-term incentive plan.
It concluded that Skipton Group Holdings had either caused or induced Connells to discriminate, or had knowingly helped it do so.
£420,000 INVESTMENT TRANSFERRED FOR 46p
Livesey paid £420,000 for a 3.27% non-voting stake in Connells through Condor 3 in 2019. Following his departure, the shares were transferred to Skipton and he received a cheque for 46p.
The tribunal compared his treatment with that of former Connells Group chief executive for estate agency David Plumtree, who was around ten years younger.
Plumtree invested £280,000 for a smaller interest but was subsequently offered a £1.632 million “clean break” arrangement. The tribunal found that denying Livesey comparable treatment was not justified and had a “very considerable” financial effect.
However, it rejected Livesey’s allegation that Skipton Building Society chief executive Stuart Haire had conducted a campaign of bullying intended to force him out. The tribunal found insufficient evidence to support that claim.
This is a landmark case which has exposed the Skipton board’s flawed decision making and its dismissive attitude towards many gifted and capable Connells staff.
Livesey called the ruling a “landmark case”, while Skipton said it was “disappointed” by the decision.
“If concerned people don’t take a stand, good businesses are damaged.”
Livesey said of the ruling: “My case is about principle – if concerned people don’t take a stand, good businesses are damaged. I also feel I have a duty to ensure that when loyal and talented staff are mistreated by their employers and discriminated against, those responsible are held to account.
“Skipton’s splashing out on TV advertising, with its slogan “founded on fairness”, is laughable.
“The tribunal’s finding of age discrimination against a 64-year-old will no doubt raise an eyebrow among Skipton’s 1.2 million savers of a similar average age.
“I also believe that, for institutions like Skipton, these findings raise serious regulatory concerns about some of the most senior people at Skipton, which should be of significant interest to the Building Society’s regulators.”
A spokesperson for Skipton said: “We are pleased that all bullying claims were decisively rejected by the Tribunal.
“We take our workplace culture very seriously and have strict policies and procedures that govern behaviours at work. We are disappointed by the Tribunal’s full decision which we will review carefully.”
The full employment tribunal judgment was published on 27 July.
