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Allan Reason, a high-earning City partner, successfully claimed unfair dismissal after a tribunal found that his firm, MacCarthy Tértrault, had not established a legitimate redundancy situation. Reason joined the firm in 2013 as a self-employed professional and became an income partner in 2018, specialising in domestic and international commercial litigation and arbitration. By the time of his dismissal in 2023, he was earning an annual salary of £320,000.
The firm alleged that Reason had failed to meet his billing targets for four consecutive years and argued that a redundancy situation had arisen in December 2022 due to a lack of litigation work. During an informal meeting in December 2022, Managing Partner Robert Brant suggested that Reason reduce his salary to £110,000 and lower his billable hours target from 1,400 to 460. However, the tribunal found no evidence that redundancy was discussed at this meeting.
Reason contended that the offer to reduce his salary and hours persisted until March 2023, even after the redundancy consultation began, indicating there was no real reduction in the need for litigation work. The tribunal also noted that Reason’s 2022 annual review did not highlight concerns about underbilling or a potential downturn in litigation work, undermining the firm’s justification for his dismissal.
Judge Anthony, presiding at the London Central tribunal, rejected Brant’s suggestion that Reason should have interpreted his unchanged salary as a warning of redundancy. The judge concluded that the redundancy claims only surfaced in March 2023 when the firm realised it could not reach an agreement with Reason on contract changes. The judge also emphasised that the firm’s reliance on Reason’s underbilling as the primary reason for dismissal was unconvincing, given that the issue was already known during negotiations in December 2022.
As a result, the tribunal ruled that Reason’s dismissal was unfair. A separate hearing will be scheduled to determine the appropriate remedy for Reason.
