Discrimination and Default Judgments: Lessons from Sinclair v The Old Toll Bar
A recent Glasgow Employment Tribunal case shows how damaging it can be when an employer fails to manage workplace behaviour and ignores a tribunal claim entirely. In Sinclair v The Old Toll Bar, the employer’s misjudgment and lack of action led to a costly default judgment and a serious reputational blow.
The Background
Ms Sinclair, a bar manager, was subjected to inappropriate and offensive comments by her boss. On more than one occasion, he made remarks about her appearance, including saying:
“You look very Aryan with your blue eyes and blond hair.”
Later, when she brought coffee for a colleague, he added:
“Oh yeah, forgot you like white people better.”
The tribunal found these comments to be degrading and offensive, creating an intimidating environment that amounted to racial harassment under the Equality Act 2010.
When Ms Sinclair raised concerns, she was dismissed just weeks before reaching two years’ service, the point at which she would normally gain full unfair dismissal protection. The employer cited poor performance but provided no evidence to support this claim.
The Employer’s Miscalculation
It appears the employer believed this was a “safe dismissal”:
Ms Sinclair had less than two years’ service, so she couldn’t usually bring an unfair dismissal claim unless automatically unfair grounds applied.
She was white, so they may have assumed discrimination wasn’t relevant or likely.
But here’s the critical mistake: discrimination claims do not require two years’ service, and they apply to all races, genders, and protected characteristics including majority groups.
This misunderstanding backfired spectacularly. Instead of being protected, the employer’s actions opened the door to a serious discrimination case and a hefty payout.
The Fatal Blow: Failing to Respond
To make matters worse, the employer failed to submit a response (ET3) and did not attend the hearing.
This meant the tribunal had only Ms Sinclair’s evidence to consider and unsurprisingly, they ruled entirely in her favour.
The awards included:
£2,000 for injury to feelings (plus interest)
Over £14,000 for unfair dismissal, lack of notice, and other breaches
Total payout exceeding £16,000
This was a direct result of both the discriminatory behaviour and the employer’s complete silence during the legal process.
Why This Matters for Employers
This case highlights three crucial lessons:
1. Don’t Assume Someone Can’t Claim
Discrimination protections apply from day one of employment not just after two years.
Any employee, even in majority groups, can be the victim of harassment or discriminatory treatment.
2. Prevent Discrimination Before It Starts
Off-hand remarks or “banter” can easily cross the line into harassment.
Regular manager training is essential to reduce risk and create a respectful workplace.
3. Always Engage with the Tribunal
Ignoring a claim doesn’t make it go away, it guarantees you will lose by default.
A well-prepared defence can help reduce liability, strike out weak claims, or settle on fair terms.
Protecting Your Business
To keep your business safe:
Train staff and managers to avoid discrimination and harassment.
Keep accurate records of performance issues, complaints, and key decisions.
Respond quickly to any ET1 claim as deadlines are strict and non-negotiable.
Seek expert advice early to protect your position and manage costs.
Final Thoughts
The Sinclair case is a powerful reminder that what may feel like a “low-risk” dismissal can turn into a high-cost mistake if discrimination is involved.
By failing to understand the law and ignoring the claim, this employer turned a manageable situation into a public tribunal defeat costing over £16,000 plus reputational damage.
At Holly Blue, we provide fixed-fee legal and HR support to help employers prevent issues before they escalate and defend claims when they arise, giving you confidence and control at every stage.