A top-earning employee was dismissed after the company realized it couldn’t afford to cover her recent salary increase.
Grace Ejiga, a former executive at Olive Jar Digital, has been awarded compensation after being wrongfully dismissed by the company.
This situation arose when the business realized it could not afford the pay rise promised to her.
The case highlights issues of employee rights and financial pressures within companies.
Grace Ejiga was a senior leader at Olive Jar.
Grace Ejiga worked as a senior leader at Olive Jar Digital, a consultancy firm based in London.
She joined the company in April 2021 and excelled in her role as a bid manager. By May 2024, she had become the highest-paid executive, earning a salary of $100,000.
However, after a challenging year for the company, the management decided they could not afford her pay rise.
Top-earning employee fired as the company can not afford her pay rise
Ejiga was dismissed on May 21, 2024, after waiting for a promised pay rise.
During an employment tribunal held in December 2024, it was revealed that her dismissal was unjustified.
The tribunal found that the company had made unauthorized deductions from her pay in the weeks leading up to her termination.
The tribunal also noted that Ejiga had never received any criticism of her performance until April 2024, when the company claimed she had committed “gross misconduct.”
However, the evidence presented against her was weak and unconvincing.
In October 2023, Ejiga had requested a review of her pay. Shortly after, she was placed on a performance improvement plan (PIP).
The company claimed she was over-delegating tasks and had communication issues.
However, Judge Tamara Lewis, who presided over the tribunal, stated that the complaints against Ejiga were minimal and lacked supporting evidence.
Ejiga felt that the PIP was not genuine and believed the company’s motives were driven by financial concerns rather than her performance.
She argued that the company wanted to avoid paying her the promised raise and was actively trying to push her out.
The company claimed Ejiga took significant time off.
The company claimed that Ejiga had taken a significant amount of time off work, though she had only taken four days.
This was used as part of their justification for her dismissal. However, the tribunal found that the company had not provided adequate evidence to support its claims of misconduct.
The tribunal also found that Olive Jar Digital seemed to be attempting to construct a case against Ejiga in anticipation of unfair dismissal proceedings.
The tribunal heard: “[Ms Ejiga] did not believe the Pip was genuine or that [Olive Jar]’s motives were benevolent given the way the matter had been handled and the pressure she was now being put under.
“She felt that her side of matters had not even been considered. As a result of the way [Olive Jar] had handled matters, she believed that the company had decided it was too expensive to give her a pay rise and wanted her out of the company.”
“The company by this time believed the relationship had broken down and did not want [Ms Ejiga] back,” Judge Lewis said.
She continued: “Rather than have to find legitimate grounds for dismissal and go through a proper process, [Olive Jar] tried to reinterpret events to suggest [Ms Ejiga] had already resigned.
“I therefore find that [Ms Ejiga] was dismissed with immediate effect on May 21 2024. As [Olive Jar] has not proved a reason for dismissal, the dismissal is therefore unfair.”
Ejiga received approximately $31,200 in compensation.
As a result of the tribunal’s findings, Grace Ejiga was awarded a total of approximately $31,200.
This amount included $4,300 for unfair dismissal, $23,000 for wrongful dismissal, and $4,100 for unauthorized deductions from her pay.
The tribunal’s decision underscores the importance of adhering to proper employment practices and the rights of employees.
Dismissals should be based on clear evidence and handled with care to avoid legal repercussions.
