Performance Plan Backfires When Law Firm Mishcon de Reya Hit with £24K Payout for Constructive Dismissal
Jacqui Coombe, LawFuel contributor
Paul Hemmings’ stint as commercial director at Mishcon de Reya’s cyber business reads like a cautionary tale for law firm management everywhere. Hired in 2020, Hemmings was promised a 3 percent commission on all fees he originated—a nice perk, if only the firm had actually paid up.
For three years, he chased not just tough market conditions but also the commission payments he was contractually owed. When the cyber unit struggled (thanks in no small part to the pandemic and a sluggish market), Mishcon de Reya didn’t seem to have a real plan, until it was time to scrutinize Hemmings’ performance.
In July 2023, the firm launched a formal performance management process, grilling Hemmings about missed sales targets.
The twist for the law firm was that his own manager admitted there was nothing Hemmings could do to fix the market’s woes, essentially setting him up for failure.
The tribunal later called this out, saying Hemmings was “doomed to failure”—hardly a confidence boost for anyone trying to hit moving targets.
Hemmings resigned in September, citing a total breakdown in trust. He’d been left in the dark about how his commission was calculated, and the tribunal found Mishcon’s explanations “disingenuous” and “evasive.”
The Employment Tribunal sided with Hemmings, ordering Mishcon de Reya to pay nearly £24,000 for constructive unfair dismissal and unlawful deduction from wages. It was a stinging reminder that even top firms can’t fudge the basics of fair treatment and transparency.
The tribunal held that the failure to pay the commission for three years was a breach of contract, as was the failure by the law firm to properly account for the commission by not providing Hemmings with the information he needed to understand how it was calculated.
Interesting case with Mishcon de Reya. I’m studying law and it’s kinda daunting to see how even big firms can slip up on HR issues. Does the article pinpoint where the management’s performance plan failed exactly? Would love more insight into the specifics to learn from their mistakes.
The performance plan essentially put too much pressure on employees without providing adequate support or incentives, leading to the constructive dismissal case. It’s a reminder that balancing performance management with employee well-being is crucial.
saw this happen in the tech world too, companies pushing hard but not seeing the line till it’s too late. guess it’s not just a tech problem but a management issue at large. hope other firms take note before making the same mistake.
This case is a valuable lesson for HR professionals everywhere. It highlights the importance of constructive dialogue between management and employees and ensuring performance plans are fair and transparent. It’s a reminder for us all to review our policies and practices.
Oh wow, a giant law firm fumbling the ball with its own employees. Who would’ve thought? Hopefully, they’ll learn to practice what they preach in employment law. Maybe start with a little chapter called ‘Don’t Make Moves That’ll Cost You 24k in Constructive Dismissal’, or is that too on the nose?