A leading Merseyside employment lawyer says the Gordon Ramsay business feud should act as a warning to other family businesses.

David Jones, head of employment law at Kirwans, said the celebrity chef faced the prospect of a “messy employment tribunal” which would result in the microscope being focused on the way he runs his business empire.

This week it has emerged that not only did the star of Channel 4 sack father-in-law Chris Hutcheson from his position as chief executive with the firm, he also suspended his wife’s brother Adam and sacked her nephew Christopher.

David Jones says the key issues for any resulting employment tribunal would be whether Ramsay has unfairly dismissed his family members in terms of procedure or whether there is a case for wrongful dismissal on the grounds of breach of contract.

He said: “Gordon Ramsay may quite well have dismissed his family unfairly on the basis that he knows what his maximum exposure would be in terms of pounds should he find himself losing a tribunal.

“He will have worked out that it is potentially cheaper to dismiss them than pay a year’s salary given the statutory caps on compensation the individuals concerned can claim.

“Ramsay has also intimated that the reason for terminating his father-in-law’s employment was linked to his ‘complex’ life. While we do not at this stage know the substantive reasons for dismissal, it would suggest either concerns with his performance or misconduct. What we do know is that Gordon Ramsay now faces the prospect of a messy employment tribunal.

“This sorry saga demonstrates in a very high profile way how badly things can go wrong when relationships break down in a family business. While no breakdown in working relationships is good for a business, the breakdown of a family business can often be far more painful because of all of the personal emotions which come with it.

“It is however the nature of business that relationships between directors and other senior employees do have their ups and downs which make it so important to take advice at the earliest possible stage rather than waiting for things to reach such a dire situation as seems the case with Gordon Ramsay.”

The basic award for unfair dismissal is capped at £11,400, while the unfair dismissal compensatory award is capped at £65,300 with a potential 25 per cent uplift for a failure to follow the Acas Code of Practice. The maximum award for breach of contract cases heard at tribunal is £25,000.

NOTES TO EDITORS

For more information or an interview with David Jones, please call Nick Mason at Mason Media on 0151 239 5050 or 07903 237008.