An unfair dismissal by a Russian billionaire of a UK senior executive was caused by his objection to the ‘brutal” staff cuts that were made during the pandemic, which occurred despite the firm’s profits. A tribunal found in favor.
Oligarch Yuri Shefler fired Chief Investment Officer Vlad Zabelin over the phone to ‘punish’ the £180,000-a-year executive for complaining about the cuts.
Shefler, a vodka tycoon worth £2 billion according to Forbes, slashed the pay of all his 2,000 workers by 30 per cent when the Covid-19 pandemic hit even though the business was still performing well.
M. Zabelin expressed concern that Shefler (owner of S.P.I.) was being used as a pretext for cutting pay without any transparency. The Group was using the pandemic to justify a reduction in pay, without transparency and that these cuts were not necessary.
London-based Mr Zabelin also complained that he would not receive his £180,000 bonus, the employment tribunal heard.
He has now successfully sued Shefler (54-year-old Victoria’s Secret model) for whistleblowing and unfair dismissal. Shefler is due to be compensated.
As Shefler’s Group Chief Investment Officer, Mr. Zabelin was initially offered a 30% pay cut in March 2020 due to the pandemic.
Oligarch Yuri Shefler (left) fired Chief Investment Officer Vlad Zabelin (right) over the phone to ‘punish’ the £180,000-a-year executive for complaining about the cuts
But he protested after he was told that the program would not be stopped.
Herr Zabelin learned that there were still ‘expensive investment options’ in America, even though New York employees were experiencing ‘brutal salary cuts.
When Mr. Zabelin spoke to Luxembourgese executives about the cuts, he was informed that they created an environment of despair and chaos.
M. Zabelin claimed that the cut in pay created a hostile environment, which negatively affected his mental health. However, a modification to how bonuses are calculated could have a significant negative impact on employees’ motivation and morale.
SPI, he claimed, was not transparent and using the pandemic for cover to take adverse decisions about staff.
Shefler called Mr. Zabelin in June 2020 and “expressly” fired him.
According to Mr Zabelin, “[Shefler]A bonus will only be granted if the person performs something beyond their scope of responsibility.
“When I explained to him that it was not the terms of my employment contract, he said that I should sign a resignation form if he didn’t like his idea.
When I asked why I had to sign the resignation letter, he said that I could “forget everything” and then hung up.
London Central employment judge Lewis said Shefler lost his patience and was already “annoyed” at Zabelin’s concerns regarding cuts and bonuses.
Judge Lewis stated, “No procedures were followed at all.” While he and Judge Lewis were having a discussion about Mr Zabelin’s concerns over pay cuts and bonus reductions, he received an unexpected message that he was being fired.
Shefler, 40, is married to Tatiana Kovylina (Russian Victoria’s Secret model), with whom he has four kids
The Russian billionaire Yuri Shefler was the previous owner of Serene, a megayacht that was sold in summer 2014.
Shefler was listed as 1205 on Forbes’ 2021 list of the richest billionaires worldwide. S.P.I Group’s most well-known product is Stolichnaya vodka. Shefler purchased it from VVO Soyuzplodoimport, a state-owned company in 1997 for $285,000
“It was evident that the Group was generating good cash flows and still making profit. It had also not reached the stage where Mr. Zabelin refused to take such reductions.
Judge Lewis stated that Mr. Zabelin was unable to be dismissed by an employer for his efforts in arguing his case, and asking for clarity about the proposal.
“Mr Zabelin was worried that SPI would use the pandemic for an excuse to reduce pay with no transparency,” said the judge. This he believed was a sign of weakness in trust and confidence.
“It was plausible for him to believe that.” Based on his personal projects and instructions, he was aware that SPI was capable of engaging in more expensive mergers or acquisitions.
“The SPI Group, a large multinational company that produces high-profile products, is quite impressive. It appears that the cuts were applied to all or most of the 2,000 employees.
It is plausible to think that during the period of Covid there was public concern about the effects on employees. This included whether employers had unnecessarily reduced staff pay and what employees may have thought.
‘An open ended 30 percent pay cut was significant. Shefler had called Mr. Zabelin at his first chance after Mr. Zabelin’s objections were communicated to him…
“He began by speaking about the [bonus]I lost my patience when Mr Zabelin mentioned his employment contract.
We doubt Shefler would be so frustrated about Zabelin’s wider situation that he loses his patience as quickly.
Shefler’s £14.5million Surrey mansion is pictured in July 2008
Shefler failed to provide evidence before the tribunal. Judge Lewis concluded that Shefler’s sacking was “out of control”.
At a later hearing, Mr Zabelin will receive compensation as a member of the board for wine holding Tenute di Toscana.
He was able to file claims for unfair dismissal, whistle blowing and discrimination against Shefler as well as SPI Spirits Limited (UK), Limited, the UK affiliate of the group.
Shefler has been married for 40 years to Tatiana Kovylina of Russia, a Victoria’s Secret model. They have four children together.
He was listed as 1205 on Forbes’ 2021 list of the richest billionaires in the world. S.P.I Group’s most well-known product is Stolichnaya vodka. Shefler purchased it from VVO Soyuzplodoimport, a state-owned company in 1997 for $285,000
Later it was found illegal to sell vodka in Russia, Belgium, Luxembourg and Luxembourg.
Shefler owned the megayacht Serene. In the summer 2014, Mohammed bin Salman was appointed Saudi Arabia’s crown prince.