Banker claims sex and age discrimination after sacking over colleague affair

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Factual summary

Stanislav Stepchuk, a former director at Merrill Lynch, was dismissed for "reckless and inappropriate" behaviour following a brief affair with a junior colleague. He is claiming sex and age discrimination at an employment tribunal in London, alleging the bank chose to dismiss him, a man in his 30s, rather than the woman, in her 20s. Mr Stepchuk claims the woman became "increasingly hostile" and made threats after he attempted to end their relationship and informed her of his wife's pregnancy. Merrill Lynch, represented by Claire Darwin KC, has suggested Mr Stepchuk initiated the sexual advances, which he denies, claiming the woman pursued him. The tribunal is ongoing.

What happened

In 2022, Stanislav Stepchuk, a director at Merrill Lynch, engaged in a brief, consensual relationship with a junior colleague, referred to as Colleague A. Mr Stepchuk claims Colleague A pursued him relentlessly. However, Merrill Lynch's representative suggested Mr Stepchuk initiated sexual messages and sent intimate photos in January 2023, which he denies, stating she was flirtatious and attracted to him. Mr Stepchuk attempted to end the relationship. Upon learning of his wife's pregnancy, Mr Stepchuk claims Colleague A became "increasingly hostile," sending threatening text messages and making "sinister and unhinged remarks," including a claim she would not mind being a "murderer" of his unborn child. Mr Stepchuk was subsequently dismissed by Merrill Lynch for "reckless and inappropriate" behaviour. He is now pursuing an employment tribunal claim against Merrill Lynch for sex and age discrimination.

Why this matters

This case highlights the complexities that can arise from consensual relationships between colleagues, particularly when there is a power differential or when one party attempts to end the relationship. It also brings into focus allegations of discriminatory treatment in disciplinary actions, where an employer's response to similar conduct by different employees may be scrutinised for bias based on protected characteristics such as sex and age. The tribunal will consider the employer's rationale for dismissal and whether the process was fair and non-discriminatory.

UK workplace relevance

UK employers have a duty to ensure fair treatment for all employees and to avoid discrimination based on protected characteristics, including sex and age, as defined by the Equality Act 2010. Disciplinary actions, particularly those following workplace relationships, must be conducted thoroughly and impartially, considering all available evidence. Allegations of differential treatment between employees involved in similar conduct can lead to claims of discrimination, requiring employers to demonstrate that their decisions were based on legitimate, non-discriminatory reasons. The case also underscores the importance of clear policies regarding workplace relationships and appropriate conduct.

What an employee may wish to document

• Workplace Relationship Policy: A clear policy outlining expectations for conduct in workplace relationships, particularly concerning power dynamics, and procedures for reporting issues.
• Code of Conduct: Documentation detailing expected professional behaviour, including communication standards and the use of company communication channels.
• Disciplinary Investigation Records: Comprehensive records of any investigation into alleged misconduct, including interview notes, evidence gathered (e.g., messages, emails), and statements from all parties involved.
• Risk Assessment: Documentation of any assessment of risks posed by workplace relationships, particularly if allegations of harassment or threats arise.
• Disciplinary Hearing Minutes: Detailed minutes of disciplinary hearings, including the allegations, employee's response, evidence considered, and the rationale for any disciplinary action taken.
• Dismissal Letter: A formal letter clearly stating the reasons for dismissal, referencing the investigation and disciplinary process.
• Grievance Records: Any formal grievances raised by either party regarding harassment, threats, or unfair treatment, and records of their investigation and resolution.

Related guidance and tools

ACAS guidance · How to document workplace bullying · Workplace incident log

Workplace Watch UK provides general information, not legal advice. HRBot iWitness does not replace a solicitor, trade union, ACAS or emergency services, and no outcome is guaranteed. To request a correction, contact the editorial team.