According to the Wall Street Journal, the men – a stock-research
analyst and three salesmen – visited the club in their free time
during a three-day client conference organised by the bank. But one
or more clients accompanied the employees on their outing, bringing
the trip into the realms of company business.
As the firm has a policy prohibiting employees from
participating in business events that exclude women, and a clause
that forbids taking clients to adult entertainment venues in
particular, Morgan Stanley took action against the men, according
to the WSJ.
Robyn McIlroy, an employment law specialist with Pinsent Masons,
the law firm behind OUT-LAW.COM, said that, from WSJ's report,
Morgan Stanley's company policy appears to be very specific – and
it seems that the employer was able to rely on that entirely to
justify dismissal.
"It is perfectly permissible to have specific company policies
such as those relating to conduct outside the office while on
company business," she said. "But in the UK, our laws mean that
unless the company could show that the employees' conduct amounted
to gross misconduct, dismissals in these circumstances could be
seen to be an extreme reaction and outside the band of reasonable
responses of a reasonable employer."
McIlroy says the case still has relevance to UK employers,
however. "It's a good example of the value of reminding workers
before they attend such company conferences that office policies
can still apply outside normal working hours as long as you are
still on company business," she said.
