London’s oldest gay pub is successfully sued for constructive dismissal

An Employment Appeal Tribunal has found London’s oldest gay pub guilty of discrimination and constructive dismissal after former employee Charles Lisboa quit after experiencing discrimination on the grounds of his sexual orientation. Interestingly, Lisboa is gay.

The Pembroke Arms, formerly known as the Coleherne Arms, in Earls Court is known as London’s first gay drinking establishment. It was acquired in 2008 by Realpubs who reopened it as a gastropub with a new name.

Lisboa told the Tribunal that the new management had tried to "de-gay" the pub, putting a sign outside announcing that it was no longer a gay establishment and asking him to reprimand gay customers for their behaviour.

In addition, gay staff and customers were referred to as “queens” and Realpubs director Malcolm Heap told Lisboa he was “a different type of gay”.

After four weeks of the pubs reopen, Lisboa quit his job. He reportedly suffered from depression and sleeplessness as a result of the discrimination, and claims that it took him nine months to find new employment.

The Employment Tribunal initially only found the Pembroke Arms to have discriminated against Lisboa and did not uphold his claim of constructive dismissal. He was awarded an undisclosed amount of damages, said to be thousands of pounds.

However, Lisboa appealed their decision in relation to his constructive dismissal claim.

Constructive dismissal can be difficult to prove. In order for an Employment Tribunal to find an employer liable for constructive dismissal, the employee must show that they felt forced to leave because the employer’s behaviour constituted a gross breach of contract, and they must not have accepted the breach of contract.

The Employment Appeal Tribunal held that Lisboa had been constructively dismissed. An implied term of any employment contract is that the employer will not discriminate against the employee on a number of grounds, including sexual orientation. As the Tribunal found that he had been discriminated against, the Appeal Tribunal held that his resignation could be considered an unfair dismissal.

The Tribunal judgement read “a policy of embracing diversity and welcoming inclusiveness is laudable; discriminating against gay customers and staff on grounds of their sexual orientation is not”.

Paul Daniels at Russell Jones & Walker, the law firm that represented Lisboa, said the judgement sends a “stark warning” to all employers who tolerate abuse and prejudice against gay staff and customers.

Lisboa’s damages for constructive dismissal are to be awarded at a Tribunal hearing soon.