A former tech executive is making headlines with a significant legal claim of £76 million after being dismissed from her job due to an incident at a work event. Shannon Burns was fired from Gitpod last year following a trip to Austria where she reportedly became intoxicated and ended up sleeping in a sauna after a night out with colleagues.
Burns previously won a discrimination case against Gitpod, and her current claim could set a record for the largest employment tribunal award in the UK. The previous highest award was £4.58 million.
When she lost her job three years ago, Burns was earning an impressive salary of £220,000, with an additional annual bonus of £78,000. She has shared that the emotional distress from her dismissal led to her developing PTSD and has forced her to leave the technology sector altogether.
Burns explained that her claim is based on thorough calculations reflecting the income she could have earned had she continued her career in tech. Although Gitpod attempted to limit the damages to £1 million, a Birmingham tribunal rejected this request, with Burns’ legal team labeling the move as “oppressive.”
The tribunal has also ordered Gitpod to disclose its sale value to OpenAI. Burns reportedly holds shares in the company worth approximately £2.6 million, which could increase to £21 million over time.
Originally from the United States, Burns is recognized for her pioneering work in tech, having previously worked for Slack and Lyft before joining Gitpod in 2022. Just a year into her role, she found herself at the center of controversy during a work event in Austria, where she drank with senior colleagues. After losing her room key and being unable to awaken her roommate, she sought refuge in a sauna for the night. It’s worth noting that Burns also has ADHD.
Gitpod’s chief executive, Johannes Landgraf, expressed concerns about her behavior, citing a lack of professional accountability, which eventually led to her dismissal later that year. Burns argued that other male colleagues had also consumed alcohol during the event, yet she was the only one who faced termination.
The tribunal ruled that Burns’ disabilities played a role in her dismissal and concluded that she had been discriminated against. The judge, Rachel Wedderspoon, remarked that Burns’ ADHD contributed to issues like forgetting her room key.
In her decision, the judge noted that Burns had a remarkable pay history. While acknowledging the high amount of damages claimed, she stated that it’s early to dismiss the likelihood of success for Burns’ valuation.
Tara Grossman, Burns’ lawyer, highlighted that Burns had previously earned over £1 million in lower-level roles. When she joined Gitpod, she was informed that her shares could range from $1.06 million to $27.85 million over four years. Grossman added that Burns is now unable to work in tech again and is training to become a therapist, which will not match her previous earning potential.
Looking ahead, another hearing is set to determine the damages, depending on Gitpod’s appeal regarding the initial tribunal decision.
