In a landmark ruling that challenges traditional workplace boundaries, food delivery platform Foodhub has been ordered to pay nearly £15,000 in compensation after unfairly dismissing an employee who worked remotely from Egypt.
The Bristol-based company terminated the worker's employment after discovering he had been working from the North African country without formal authorisation. However, an employment tribunal found the dismissal procedurally unfair, highlighting significant flaws in the company's investigation process.
Case Details Reveal Modern Work Dilemma
The tribunal heard that the employee, who handled social media and promotional work for Foodhub, had been performing his duties effectively from Egypt for several weeks. The company only became aware of his location when he requested to work additional hours to compensate for time zone differences.
Employment Judge Jonathan Gray ruled that while Foodhub had genuine concerns about data security and tax implications, their investigation was "wholly inadequate." The company failed to properly consider the employee's explanations or follow fair disciplinary procedures.
Broader Implications for Remote Work Policies
This case emerges as businesses across the UK grapple with establishing clear policies for hybrid and remote working arrangements. Since the pandemic, the number of employees working internationally has surged, creating new legal and operational challenges for employers.
Key issues highlighted by the tribunal include:
- Data protection compliance when employees work overseas
- Tax and national insurance implications
- The need for clear remote work policies
- Balancing flexibility with operational requirements
The judge noted that while employers have legitimate concerns about staff working from different jurisdictions, they must handle such situations fairly and investigate thoroughly before taking disciplinary action.
Compensation Awarded Despite Contributory Fault
Although the tribunal found the dismissal unfair, it also ruled that the employee contributed to his dismissal by 20% for failing to seek proper authorisation. The final compensation of £14,967 reflects this reduction from the original award of £18,709.
This case serves as a crucial reminder to both employers and employees about the importance of clear communication and formal agreements when it comes to remote working arrangements, particularly those involving international locations.
