- Written by Simon Jack & Michael Race
- Business Editor and Business Correspondent at BBC News
CBI Business Group has settled a lawsuit brought by former boss Tony Dunker for unfair dismissal.
Dankhar was immediately fired in 2023 following complaints about his conduct.
His resignation comes as other allegations of historic misconduct at the lobby group come to light, but were unrelated to Danquah.
The CBI has confirmed that it has agreed to a “private settlement” with the former director.
The group, which claims to represent the interests of 170,000 businesses across the UK, also reiterated on Monday that Mr Danker had nothing to do with the historical claims.
The CBI, one of Britain's most prominent lobbying groups, was thrown into crisis last year after allegations of rape and sexual assault. This led to dozens of direct members, including John Lewis, BMW and Virgin Media O2, and thousands more to leave the group through industry bodies.
Events were postponed and the government halted economic and business policy consultations with the group, raising concerns about its funding and survival.
He takes female colleagues to karaoke bars, invites younger female colleagues to one-on-one breakfast meetings, follows and comments on social media posts, and sends personal messages on work platforms. He was criticized for sending it. He was dismissed in April 2023.
But he claimed that the wider crisis involving the CBI had left him “on the decline” and that his reputation had “completely fallen into disrepair”.
Brian McBride, the CBI chairman at the time, told the BBC after Dancker resigned: “If you believe you have been treated unfairly, you are welcome to bring a complaint to an employment tribunal or tribunal.”
He also said Mr Danker's account of events was “selective”.
Mr Dunker is understood to have ultimately taken the case to Bruce Kerr KC, author of the Kerr Review on industrial disputes.
On Monday, the CBI announced that the case had been settled and the board “also reiterates that Mr. Dhankhar is not associated in any way with any historical allegations reported in the media regarding matters dating back to before his tenure at the CBI.” , denying any facts.” Such an association.”
If an employee has an issue with their termination, there are two types of legal action they can take. One way is to assess whether the reasons for which a person was dismissed was fair or unfair, through an employment tribunal, or whether the way in which a person was dismissed was contractually appropriate, through High Court proceedings. .
Mr. Dhankhar's case appears to be the latter, and the latest settlement appears to be some sort of vindication for him, but it does not mean that the CBI has accepted that the reason for his dismissal was unfair.
Employment lawyer Rosemary Connolly told the BBC that unfair dismissal claims arise when an employer breaches “an aspect of the employee's contract at the time of dismissal”.
“Generally speaking, this could be related to non-payment of notice fees or not allowing employees to participate in contractual disciplinary processes,” she said.
Mr Danker, who was born in Belfast, took over as head of the CBI in November 2020.
Dame Carolyn Fairbairn was the former director-general from 2015 to 2020, when allegations of sexual misconduct, including rape at a 2019 CBI summer party, arose.
He previously spent 10 years as a consultant at McKinsey and worked as a special adviser to the Treasury under Gordon Brown. He also served as international director and then chief strategy officer for Guardian News and Media.
The CBI is still trying to recover from the biggest scandal since its founding in 1965, and has fired about a third of its staff due to falling membership fees.
He said that by failing to take action, a “very small number” of staff believed they could get away with harassment and violence against women.
The company recently successfully raised additional funding and appointed business industry veteran Rupert Soames as its new president.
Rayne Newton-Smith, who replaced Tony Dunker as executive director, previously told the BBC that she had raised concerns about sexual harassment while in a senior role at the group.