Whisteblower wins dismissal case over scam

11:19am Saturday 23rd February 2008

A WHISTLEBLOWER who was told to clear his desk after reporting a beer labelling scam to his company boss has won a claim for unfair dismissal.

Roy Cole, former commercial manager of Malton drinks wholesaler Tate-Smith Ltd, now looks set to receive substantial compensation - although the precise amount will not be determined until a later date.

Mr Cole, of Bishopthorpe, near York, said after winning an employment tribunal hearing yesterday: "I am obviously delighted that my actions in bringing the criminal acts to an end have been vindicated. I am particularly pleased that allegations against me of blackmail have been rejected."

The tribunal decided that Mr Cole acted in good faith when he told company chairman Tim Tate-Smith how his son, managing director Paul Tate-Smith, had been attaching fake "best before" labels on kegs of beer.

It also decided he was entitled to consider he had been dismissed when he was told to clear his desk and leave the premises within ten minutes, even though a letter he was handed shortly afterwards said he had been suspended.

Tim Tate-Smith had claimed that Mr Cole's main motivation in reporting the matter had been financial gain, and he had sought to blackmail the company. He had also claimed Mr Cole had not been dismissed but had resigned.

The tribunal in Leeds was told on Thursday how Mr Cole had warned the managing director to stop the "fraud" when he discovered it in January last year. He said he had overheard a conversation involving the managing director in which it emerged that the best- before labels were being copied and applied to kegs beyond their best before dates.

When he challenged Mr Tate-Smith, he initially denied this was happening but then admitted it, saying it was a one-off to get rid of old stock and would not happen again.

He said he told Mr Tate-Smith he was not prepared to see staff and customers being treated with contempt.

Mr Cole said that instead of stopping, the managing director had stepped up the deceit and had even started defrauding breweries with the same sort of scam.

He claimed that when he eventually sought to "blow the whistle" by submitting a report to Tim Tate-Smith - Paul's father - the chairman reacted by telling him to clear his desk and leave the premises within ten minutes.

The company, which supplies pubs, hotels, clubs, and other premises across North Yorkshire and York, said in a statement after yesterday's hearing: "We are disappointed that this case should have reached tribunal. At every stage we have endeavoured to resolve the issues raised by Mr Cole in a constructive and conciliatory way.

"We accept the findings of the tribunal but it would not be appropriate to comment further whilst there are matters still outstanding to be resolved. However, we plan now to focus on continuing to deliver an excellent service to our customers and we do not intend to make further comment."