Mr M Fraser v Nucore Group Ltd — 2022

Mr M Fraser joined Nucore Group Ltd as CFO on 4 July 2018 and became CEO in February 2019. The case arose during a refinancing and restructuring involving Lonsdale Capital and Beechbrook Capital. He resigned on 1 March 2021, withdrew that resignation on 4 March 2021, and then resigned again by email on 21 April 2021 with a stated leaving date of 31 August 2021. The respondent later accepted a shortened notice period and put him on garden leave.

In late May 2021 Beechbrook required Mr Fraser to sign commercial warranties shortly before completion of the restructure. He took legal advice and objected to the terms. The tribunal accepted that the process caused delay and that, after a conversation with Ms F G McGregor and subsequent exchanges with Mr Ward, he told the respondent that he was "done" and then did not assist the incoming management team in the way the respondent expected.

The respondent brought disciplinary proceedings in August 2021 based on his refusal to engage, lack of handover and alleged financial irregularities, including stock and accounting issues. Applying s.98(1), s.98(2) and s.98(4) ERA 1996, the Burchell approach, the Iceland Frozen Foods band of reasonable responses, Polkey, and the ACAS Code, the tribunal held that the dismissal was fair and dismissed the constructive dismissal claim. It also found that any procedural defects would not have altered the result.

On notice, the tribunal held that the second resignation had been withdrawn and that the respondent could not simply impose 31 August 2021 as the leaving date, but it nevertheless dismissed the contractual notice claim because Mr Fraser's conduct disentitled him to contractual notice or the balance of it. On the bonus, the tribunal found that a remuneration committee meeting on 3 March 2021 had awarded him £75,000 in two instalments, that £37,500 remained unpaid, and that the respondent could not recalculate the bonus downward by relying on later stock adjustments or alleged error. The unpaid £37,500 was therefore an unlawful deduction from wages and was awarded.