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In what could be a landmark ruling under new UK anti-gay discrimination laws, the tribunal criticised HSBC's initial investigation of sexual harassment allegations against the banker Peter Lewis and upheld four out of his 16 claims against the world's third-largest bank. "We have decided that there are facts from which the tribunal could conclude less favourable treatment on the grounds of sexual orientation, but the decision to dismiss was not in fact influenced by sexual orientation," the tribunal said in its 68-page judgement. The case was one of the first major claims under UK sexual orientation discrimination legislation introduced in 2003 to protect gay and lesbian people in the workplace. It joins a growing list of cases against banks in the traditionally male-dominated City of London that are seeing a wave of discrimination lawsuits over issues such as equal pay, bullying and sex discrimination. Lewis, former head of HSBC's global equity trading business, was sacked for gross personal misconduct in December 2004 after an alleged sexual harassment incident at the bank's gym. He denied the incident and launched a 5-million-pound discrimination lawsuit against the bank, claiming he was sacked because he was gay. HSBC denied this. The tribunal said: "The decision to dismiss is wholly attributable to a genuine and legitimate conclusion that (Peter Lewis) was guilty of the gross misconduct alleged." "CLOSED MIND" HSBC said it was pleased the tribunal had rejected the main points of Lewis's claim but was "disappointed and surprised by the adverse findings of the tribunal on four of the 16 points of Mr Lewis's claim." These related to the initial stages of the disciplinary process against Lewis, who had joined HSBC in September 2004 on a package worth around 1 million pounds. Lewis's lawyer, Alison Downie, a partner at Bindman & Partners, said they were pleased that the tribunal had found HSBC had discriminated against Lewis on grounds of his sexual orientation on a number of issues. "The judgement is important and deserves to be considered carefully by employers who wish to act fairly towards their employees," she said. The tribunal was highly critical of Natalie Hattrell, an HSBC human resources executive who conducted the initial investigation into the allegations against Lewis. "We take into account that there was both embellishment and exaggeration by Mrs Hattrell and also that on significant points, her credibility was lacking." The tribunal found that Hattrell discriminated against Lewis and said she had a "closed mind" on his case in that she did not consider there was any alternative to dismissal. It found that HSBC's decision to suspend Lewis while the allegations against him were investigated was discriminatory. It also ruled Lewis was discriminated against by the inclusion of a second allegation against him by another employee. "It was a hearsay allegation, based upon flimsy evidence and salacious in its effect," the tribunal said. HSBC said it was considering whether to appeal the tribunal's findings on these points. Any compensation for Lewis will be decided at a future tribunal hearing. EQUALITY Lewis said he was grateful for the tribunal's judgement that HSBC did discriminate against him on grounds of his sexual orientation on those particular points. "This can only help embolden those who strive for equality for lesbian and gay people," he said. The macho culture of investment banking has become an increasing liability as a growing number of disgruntled staff have decided to sue over grievances. Dresdner Kleinwort Wasserstein was targeted in a $1.4 billion sex discrimination case in the United States earlier this year. Stephanie Villalba, a former high-flying banker at Merrill Lynch, lost a 7.5 million-pound claim for alleged sex discrimination against the U.S. bank in 2004. Last year Deutsche Bank settled a claim against it under the sexual orientation legislation by Sid Saeed, a business manager at the German bank.
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