Lessons from the National Museums of Scotland Case

What’s the cost of a single mistake in your performance management process? For one organization, it was ￡20,000. When the National Museums of Scotland dismissed an underperforming employee without following the right procedures, they learned the hard way just how expensive a misstep can be. A tribunal ruled that the employee’s dismissal was unfair, and the museum was ordered to pay a hefty ￡22,210 in compensation.

This case serves as a powerful lesson for employers everywhere: failing to follow the right procedures is as risky as it could be costly. But it’s not all bad news. By learning from this case, you can avoid these pitfalls and strengthen your performance management process. Here are the key lessons you need to take away to safeguard your business.

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Employers must ensure that internal disciplinary and performance management policies are consistently followed. In this case, the employer failed to give clear, formal warnings before dismissal, which contributed to the tribunal ruling in favor of the employee.

Not adhering to your own processes leaves you vulnerable to claims of unfair dismissal, even if the employee’s performance is genuinely poor.

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Maintain clear, detailed records of performance reviews, improvement plans (PIPs), and any informal or formal warnings given.

This documentation serves as evidence in case of a tribunal. Without it, your side of the story may not be enough to justify dismissal.

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Employees must fully understand the potential consequences of not meeting performance expectations. A PIP should include clear, direct language about the repercussions if performance doesn’t improve.

If employees don’t know that dismissal is a possible outcome, it can be seen as unfair or a breach of trust when it happens. This leaves employers exposed to legal claims.

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Before proceeding with dismissal, consider whether redeployment within the organization could be a viable solution, especially for employers of large organizations.

Offering redeployment could help avoid the legal and financial fallout of unfair dismissal claims. It's important to demonstrate that all options have been explored.

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Employers must ensure that their managers are adequately trained to handle performance issues according to legal guidelines. This includes knowing when to escalate issues, how to issue warnings, and how to manage PIPs.

A well-trained manager can avoid common mistakes in performance management, and reduce the risk of legal consequences and ensuring fair treatment of employees.

A Final Word of Caution

The financial implications of errors in your performance management process can be severe, but the consequences extend far beyond monetary losses. An unfair dismissal case, for instance, can undermine your organization’s credibility, erode employee morale, and adversely impact workplace culture. Every decision communicates the type of employer you are. Will it reflect trust, fairness, and professionalism—or signal risk, negligence, and uncertainty?

The choice is yours. But remember, inaction or complacency is a decision too—one that may cost far more than you can afford.

With over 15 years of experience as a trusted management consultancy, OML Africa supports organizations across Africa and Europe with expert advisory services, outsourcing solutions, HR audits, and Employer of Record services. We help organizations build resilient and compliant performance management process that protects businesses and strengthens workplace culture.

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