The case of Dr Susan Gilby vs Countess of Chester Hospital NHS Foundation Trust hit the headlines last week due, not only to the notoriety of the Trust as the erstwhile employer of convicted child-murderer, Lucy Letby, but also the jaw-dropping settlement that the Trust has agreed to pay following Dr Gilby’s Employment Tribunal win.
In February 2025, Dr Susan Gilby was successful in her claims of unfair dismissal and detrimental treatment on the grounds of whistleblowing against the beleaguered NHS Trust, following a 20-day hearing.
Dr Gilby was employed by the NHS Trust in August 2018 and very soon after was appointed acting CEO following the departure of the previous postholder who resigned in the wake of the criminal investigation and subsequent arrest of Lucy Letby.
During her appointment, Dr Gilby received very positive appraisals and was particularly praised for guiding the organisation through the Covid-19 pandemic. However, this all changed when a new Chair was appointed to the Board in September 2021; Ian Haythornthwaite. Not long after Mr Haythornthwaite’s appointment, he started to behave towards Dr Gilby in a way she found threatening and upsetting. She subsequently raised a complaint of bullying and harassment regarding the Chair. In response, the Chair and three senior Trust members, created the “Project Countess group” whose aim was, the Tribunal held, to oust Dr Gilby from her post.
The Tribunal found that the group then proceeded to build a sham case against Dr Gilby, whereby unfounded allegations of misconduct and performance were made against her. This culminated in her being suspended in December 2022 from her post as CEO due to various, unspecific allegations that the Tribunal said did not amount to gross misconduct at all.
In response to her suspension, Dr Gilby resigned, on notice, stating that she had been constructively dismissed due to the Trust’s breach of the implied relationship of trust and confidence that culminated in her unlawful suspension.
Dr Gilby subsequently submitted claims against the Trust for constructive unfair dismissal, whistleblowing dismissal and whistleblowing detriment.
The case went to final hearing and the Tribunal found that Dr Gilby had been constructively dismissed and that the reason she was dismissed was because she had made a protected disclosure (“blown the whistle”) about the behaviour of the Trust and the Chair. The Tribunal also upheld a number of Dr Gilby’s claims of detrimental treatment for whistleblowing.
The compensation that the Trust has agreed to pay Dr Gilby is one of the largest ever made by the NHS to a former employee. Overall, however, the cost to the NHS will be much higher once the legal costs are factored in, some report this to be a total cost of £3 million to the UK taxpayer.
The case is a salutary lesson in how not to handle complaints of harassment and bullying in the workplace and highlights the serious financial implications that can result, particularly when retaliatory action is taken against the employee who raises those concerns. Unlike “ordinary unfair dismissal claims”, where the level of compensation for financial loss is capped at 52 weeks’ pay (or £118,223, if lower), no such cap applies where the reason for dismissal is due to whistleblowing, meaning that the financial exposure is much higher. Where the employee has also been subjected to detrimental treatment for whistleblowing, such as suspension from work in Dr Gilby’s case, the Tribunal can make an award for injury to feelings on top of compensation for financial loss.
However, whilst the financial consequences for the employer can be far reaching, the harmful emotional impact on the employee can be much greater and last for longer – and potentially result in the ending of a career in some sectors where there is still a stigma attached to whistleblowing.
You can read the full judgment here: Dr_S_Gilby_v_Countess_of_Chester_Hospital_NHS_Foundation_Trust___Other_-_2402398_2023___Other.pdf
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