A company director was cleared of sexually harassing one of his employees, who happens to be his niece, but his company was found guilty of her unfair dismissal and ordered to pay her €3,000 compensation.

An Industrial Tribunal heard the employee accusing her uncle of sexually harassing her when she used to work for the company and of dismissing her unfairly.

The tribunal, presided over by lawyer Martin Fenech, heard the woman claim that her uncle, who was separated from her aunt, usually invited her over to his house, bought her expensive jewellery for Christmas and offered her a flight to Europe on condition she went abroad with him.

The company director refuted all the claims, saying she was sacked because she made too many mistakes at work. The tribunal heard how, in the eight years she spent working there, she received three warnings.

On the jewellery, the man said he bought Christmas presents for all his employees and denied ever telling his niece to go abroad with him.

When evaluating the unfair dismissal claim, the tribunal said the company had to be consistent on the measures it took against its employees and could not take action on mistakes that used to be accepted in the past. It therefore ordered the company to pay the woman €3,000 in compensation.