A fundraising consultancy has been ordered to pay almost £92,000 to its former chief executive after an employment tribunal ruled he was unfairly dismissed.
A judge found that Compton Fundraising Consultants’ claims that it had needed to make Andrew Day redundant in 2016 were "a sham" and its redundancy process had been rigged.
The tribunal awarded Day £91,895 in compensation, documents show.
The tribunal documents were published this week after the judge ruled in October that Compton should not have to pay Day’s costs from the original case, which took place in September 2017.
Day was dismissed from Compton in November 2016 after a disagreement with the rest of the board about his decision to become a local councillor. He had worked there since 1990 and he and his wife owned 38 per cent of the shares.
Day was elected to Warwick District Council in May 2015, but when he told the chair and other directors of the company they said they believed his duties as a councillor would leave him distracted and unable to do his job properly.
He disagreed and the discussion got heated, according to the documents.
After plans for the Days to be bought out of the company fell through, Andrew Day was told that the company was restructuring because it no longer needed two senior executives. The board, he was told, would be choosing between him and Paul Molloy, the regional managing director, who performed a similar role to Day and, along with his wife, also had a 38 per cent stake in the company.
But the judge found that the redundancy consultation process had been put together in order to ensure that Day, not Molloy, was the one made redundant.
In the judgment, Employment Judge Choudry said it was clear the relationship between Day and the company had broken down and it was a sensible course to consider an exit package.
But, the judge said: "I am satisfied that when those negotiations broke down the respondent engineered a redundancy situation in order to procure the removal of the claimant and that the redundancy process was predetermined."
Day later formed another consultancy, Gifted Philanthropy, and is its chief executive.
He told Third Sector that the issues at Compton had arisen from "a clash of different values" and said he believed it was vital for those involved in fundraising to seek out voluntary and community roles.
"I wish Compton well," he said. "I and the others at Gifted have been able to build a company up that focuses on our own values."
Compton did not respond to Third Sector’s request for comment.