Please read the case study below and answer the 2 questions at the end

Case Study - Trouble at the Milldam Brewery

The Milldam Brewery (MB) is a small craft beer company in Portsmouth that produces a limited range of bottled beer and similar alcohol products. The head brewer, Olaf, is 40 years old and has been working for the company as an employee for 15 years. He is an expert in making beer but is not so good at running a business.

The company also employs four local men to do manual work moving stock and ingredients and assist in the brewing process. Recently the company has been trying to expand and in June 2017 the owners hired a new manager, Preeti, to make some changes that will make the business more competitive. Preeti becomes Olars new line manager.

Straight away Olaf and Preeti begin to have personality clashes and arguments. Preeti wants to introduce new cost saving measures to the brewing process.

Olaf feels this is micromanagement and an interference with his ability to do his job. They have several heated discussions but ultimately Olaf reluctantly follows the instructions he is given. Three months after Preeti began working for MB she and Olaf have a loud argument in the middle of the brewery warehouse after Preeti decides that the brewery should switch its hops supplier to a cheaper alternative. Olaf believes the new hops will be inferior and harm the quality of the beer. He swore at her and said she was an idiot who doesn't know anything about beer".

Preeti responds by saying he is too angry and insubordinate to work for her and sends him home for the rest of the day. As he is getting ready to leave she informs him orally that he must attend a disciplinary meeting at 9am the next morning to discuss his behaviour, in particular the fact he swore at his line manager. She tells him that he is entitled to bring a trade union representative or a work colleague to the meeting. As a final comment before Olaf walks out the door Preeti says to him, "You better come in ready to apologise in the morning or you are going to get the sack."

At the meeting the next morning another manager is present but Preeti leads the discussion. She sets out Olaf's behaviour over the previous 3 months which she says was "argumentative and insubordinate", and tells Olaf that swearing at her the day before is a serious disciplinary offence Olaf is given a chance to respond and sticks to the line that Preeti pushed him too far and was interfering in his job. At the end of the meeting Preeti tells Olaf that he is being dismissed effective immediately for gross misconduct.
The staff handbook at MB states that:

"Disciplinary action will be taken in accordance with the practices and procedures found in the ACAS Code of Practice on Disciplinary and Grievance Procedures."

Over the next month Preeti finds that the atmosphere towards her at work among the 4 other young men who work in the brewery is very hostile. They are angry at the treatment of Olaf and although they continue to do their work and follow instructions, it is clear to Preeti she is not welcome.

One day she overhears the men making racist jokes about her ethnic background and the colour of her skin. Preeti is British but has South East Asian heritage. On another occasion she finds the words, "Get the bitch out!" written in chalk on the brewery wall near her car. She complains about the situation to the other senior employees and the owners of the brewery but she is told that she is their manager and she should "sort it out herself". Preeti does not feel she is able to address the problem without making the atmosphere worse.

When the job of replacement head brewer at MB is advertised, 3 candidates apply. Dave is a candidate with a degree in business management and 7 years of experience of making beer for another small brewery. Steve also applies but he has only secondary school education and 3 years of experience in a large industrial brewery.

James has a technical qualification from a college in beer making and also has 3 years of experience working for a large brewery. At interview all candidates perform well. Preeti tells the other directors that she wants to employ James because he is black and she "is fed up of working in a company with only white men."

Answer the two following Questions - Question One is worth 60 marks and Question Two is worth 40 marjs. Please read the assessment criteria and consider the feedback you received on the January coursework carefully before you submit your work. In particular note how higher grades can be achieved.

Question 1. - Advise MB of their potential liability to Olaf in Unfair Dismissal.

Question 2. - Advise MB about the possible claims that could be made against them by Preeti and Dave and Steve under the Equality Act 2010 and the potential remedies.