An employment perspective of the Costa Concordia disaster (and what to learn from it).
Most people will be familiar with the terrible events recently occurred aboard the Costa Concordia and the fact that it is still ongoing. As part of this some are surprised at the speed in which Costa Cruises have pointed the finger at the Captain, Mr Schettino, for causing the tragedy and loss of life. However, this quick reaction to ‘blame’ individuals appears to becoming more frequent.
Whilst Mr Shettino’s matter is not within our legal jurisdiction there are important lessons for all employers to consider if subject to our laws.
Constructive Unfair Dismissal
Constructive unfair dismissal is essentially where an employee resigns as a result of a fundamental breach of contract (implied or written) caused by their employer. Most often this is the implied term of mutual trust and confidence.
If Mr Shettino was employed in the UK it would be very easy for him to allege this breach given that the employer has publically held him accountable without any proper investigation. These are arguably not the acts of a reasonable employer and this is the standard to which the Employment Tribunal measures an employer.
If your employee does something which causes the company to find itself in the public eye, be it an accident at work, or an accident on the road, financial irregularities or otherwise, any public event such as this should be treated no differently than a usual disciplinary matter and the ACAS Code http://www.acas.org.uk/CHttpHandler.ashx?id=1041 followed. Due to the seriousness of the allegations it would usually be acceptable for the employee to be suspended (for no longer than necessary) whilst a full investigation is conducted. This would usually, if the allegations have some foundation, lead to a disciplinary hearing and finally an appeal if the employer finds against the employee in the first instance.
Public Relations
For larger organisations a PR/media expert might be needed. However, standard steps might include:
Making no formal comment about the employee until the outcome of the disciplinary hearing and/or possibly the appeal, save to confirm that a full investigation is underway.
- Express regret that an event occurred which has impacted on your customers, i.e. caused a loss of life or monies etc, without taking responsibility for it.
- Quickly ensuring that all staff are informed that they cannot comment on matters and ensure that all media interest is directed to one person.
- Focus on the positive steps you are taking i.e. an independent investigation, review of best practice if necessary and reassure your customers of all the good things you do.
Other Claims
For many companies the additional concern will be that claims are brought against them because of the actions of their employee since our law allows an employer to be ‘vicariously liable’ for their employee’s actions in certain circumstances, of which this Costa situation, would certainly be one.
By openly admitting your employee is at fault it limits any arguments you might later wish to rely upon to defend yourselves against any claims for the company’s actions/negligence and so forth.
This could also have a significant impact on the prosperity of the business (future customers, investors etc) even more than where liability is not so readily admitted.
Negative public interest in the company must be quickly responded to but in a sensible and well considered manner!
Disclaimer
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The information and commentary does not, and is not intended to, amount to legal advice to any person on a specific case or matter. You are strongly advised to obtain specific, personal advice from a solicitor about your case or matter and not to rely on the information or comments on this site.
