No, said the EAT in JP Morgan v Ktorza.
Mr Ktorza worked on JP Morgan Securities’ foreign exchange desk. He was dismissed for short filling - a practice that JP Morgan Securities prohibited. The ET found his dismissal to be unfair, but JP Morgan Securities appealed. The EAT allowed the appeal, finding that the ET had made a mistake in deciding that Mr Ktorza’s conduct was not culpable. The EAT held that in conduct dismissals, an employer does not need to show that conduct is culpable to establish a reason for dismissal. The issue of culpability is only relevant to the ET’s determination of whether the employer acted reasonably in treating the conduct as sufficient reason for dismissal.
This is a positive result for employers wishing to dismiss an employee for their conduct. It confirms that they will not need to prove the conduct that resulted in the dismissal was culpable – only that the employer acted reasonably in deciding that the conduct was a sufficient reason to dismiss the employee.
For more information, please contact Nia Cooper.
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