BBC Director General Tim Davie faced tough questions over his handling of the Hugh Edwards investigation.
Among the points raised by Culture Secretary Lisa Nandy were why Mr Edwards was not sacked when the BBC learned of his arrest and why he received a pay rise during this period.
A recent court ruling has highlighted the risks of dismissing employees suspected of involvement in criminal activities.
Care assistant Jacqueline Divolco brought an unfair dismissal claim against her employer, Care UK, after she was accused of murder in October 2022. The employment tribunal upheld her claim, saying the company had failed to properly investigate whether the allegations could reasonably be expected to cause harm to the organisation’s reputation.
“The Divolco case clearly demonstrates how the law and the public interest do not always align,” said Rob McKellar, Peninsula’s director of legal services. “It may shed some light on the BBC’s decision to proceed with caution in not sacking Hugh Edwards when it became aware of the police investigation into child sexual exploitation offences.”
“While in the DeVolco case, the employee was actually charged, though not convicted, in the Edwards case the matter was still under investigation as of last week.
“Had the BBC decided to sack Hugh Edwards when it was notified of his arrest in November, it may have found itself using taxpayers’ money to defend itself and pay for an expensive legal case.
“But that doesn’t mean employers can’t dismiss employees for reasons of reputation or the public interest. The law sets out five just grounds for dismissal, and misconduct is just one of them.
Employers may also terminate an employee based on “other substantial reason” (SOSR). The legal test for determining whether a termination based on “other substantial reason” is fair is whether the employer followed a fair process and acted reasonably in reaching the conclusion it did.
“When it comes to the issue of pay, the employment contract is key. If the contract states that when an employee is suspended, they will receive their full pay, they are entitled to receive their pay in line with that contract. Pay increases that are supposed to be granted during the suspension must also be respected, unless there is a contractual clause that states otherwise.
“If there is any kind of wage recovery agreement that provides for the wages to be deducted or claimed, there may be an option to do so. The employer will need to ask the employee to return the money. If they fail to do so, and there is an existing agreement that says they will have to, the claim can be pursued through the civil courts.
“Lisa Nandy has called on Hugh Edwards to return his salary; it remains to be seen what course of action can be taken here.”
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