PwC Australia failed to follow proper process in an attempt to fire partner Richard Gregg, a court ruled, and will be forced into a hefty payout for trying to rush him out the door.
As part of the fallout of the PwC tax leaks scandal, the big four consultancy named Mr Gregg, a research and development incentive tax specialist, as one of eight partners who had exited or were in the process of being removed from the firm’s partnership.
PwC partner Richard Gregg and his lawyer Rebekah Giles outside court last month Peter Rae
Justice David Hammerschlag on Friday ruled in favour of Mr Gregg, who took action in the NSW Supreme Court against PwC last month after he was given notice on July 3 that the firm’s management had recommended he be required to retire.
Under the PwC deed of partnership, management needs to provide a written recommendation to the firm’s board of partners when seeking to force the retirement of a partner.
“The recommendation does not comply with the requirement in [the partnership deed] that management specify reasons for forming its view and making the recommendation. Gregg is accordingly entitled to declaratory relief,” Justice Hammerschlag said.
PwC and Mr Gregg have a week to come to an agreement on costs and payout, or the matter will be settled by the court.
PwC has acknowledged that Mr Gregg, who was directed to take leave in May, was not involved in the tax leaks scandal.
Mr Gregg argued PwC management did not give enough information, or valid reasons, in its recommendation to the board under requirements in the group’s partnership agreement.
“The recommendation does not disclose any path of reasoning by which Management reached its view that the outcome should be that Gregg should be required to
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