Rockstar row raises issues for employers over unions

Rockstar’s flagship Grand Theft Auto franchise, despite delays to its next instalment, continues to achieve major industry recognition - creating a juxtaposition between commercial success and cultural reputation for the business.

There are clear lessons here, especially for Scotland’s growing tech scene, where union membership has been rising, on how employers can avoid similar legal and reputational crises.

Understand trade unions and the law

Trade union activity is strongly protected under UK law. If the principal reason for a dismissal is union activity, it is automatically unfair from day one of employment, can result in uncapped compensation, and applies regardless of length of service. Employers facing claims of dismissal for union organising often face a difficult evidential task to prove the action was taken for a legitimate, unrelated reason.

“Gross misconduct” should not be treated as a catch-all justification for dismissal. Employment tribunals scrutinise misconduct allegations closely and require robust evidence. Cases frequently depend on the quality of the investigation and the employer’s documentation. While a thorough paper trail can strengthen an employer’s defence, it may still not be enough if the conduct is too closely linked to union activity.

Employment law continues to evolve. A significant change is expected with the proposed Employment Rights Bill, which is anticipated to introduce a right not to be unfairly dismissed after six months, replacing the current two-year requirement, and removing the cap on compensatory awards.

Avoid rushing to dismiss

Even where employers are concerned about future legal changes, jumping straight to dismissal can be risky. In disputes or allegations of wrongdoing, settlement discussions may help reduce legal costs and reputational damage.

Businesses worried about similar challenges should review manager training on protected trade union activity, whistleblowing, confidentiality limits, and the importance of evidence. Poorly informed decisions can lead to costly and protracted litigation. It is also good practice to review past disciplinary records to ensure consistency in how similar behaviour has been treated.

Consider engaging with trade unions

Where union recognition appears inevitable and has majority support, a hardline stance can be counterproductive. The forthcoming Employment Rights Bill is expected to lower thresholds for union recognition, making engagement more likely.

Constructive engagement, including voluntary recognition agreements supported by legal and HR advice, can help establish positive working relationships. Well-managed union relationships can benefit both employers and employees. Employers should also recognise that unions are typically well organised, particularly in media and communications, and aggressive approaches can quickly escalate into public disputes.

Get communications right

Aggressive disciplinary action can provoke backlash not only from dismissed employees but also from the wider workforce. In the Rockstar North case, more than 200 staff reportedly signed a letter demanding reinstatement of colleagues. This places employers under pressure on multiple fronts: potential legal claims, internal morale issues, and reputational damage.

While it is unclear whether this situation could have been avoided, it illustrates why large-scale dismissals or redundancies should involve not only legal advisers but also public relations support.

Employee rights and collective power

A notable aspect of this case has been the collective response from existing staff. For employers, this highlights how action perceived as targeting union activity can galvanise support for unionisation and intensify legal and reputational challenges. Constructive engagement with staff and their representatives can often be more effective than confrontation, helping to protect both the business and its workplace culture.

Robin Turnbull is a Partner at Anderson Strathern