‘Lazy’ AI boss accused of sleeping at her desk wins unfair dismissal case

A director at a British AI company who was branded so 'lazy' she was compared to a 'school leaver' has won an unfair dismissal case.

Dr Dan Luo, 46, was called an 'incredibly lazy woman' by other directors who accused her of sleeping at her desk and leaving early, an employment tribunal heard.

Her co-directors at the AI start-up company said they would be 'embarrassed' to take a salary if they were her and told her to 'pull yourself together'.

Dr Luo, who moved from China before taking up her post, showed a 'level of work commitment like that of a school leaver or a school apprentice'.

The relationship between Dr Luo and the company broke down over her output and she was left in 'limbo'.

London South Employment Tribunal ruled this amounted to unfair dismissal and Dr Luo is now in line for compensation.

She had also not been paid during her notice period, as well as an unauthorised deduction in wages for 11 months.

Dr Luo previously worked as a medical doctor in China.

A month after she moved to the UK, in October 2020, she started working at Blue Strawberry AI - formerly known as Canterbury AI.

She had made a significant financial investment in the company and became a shareholder, director and employee.

She had no prior business experience, and the company was aware of this.

Blue Strawberry AI is a small start-up business which is a media management and marketing platform.

In February 2022, Wesley Baker, another director of the business, emailed Dr Luo saying that he thought Dr Luo had been making a lot of errors.

He followed this up three months later by having a meeting with her where they discussed her performance and that he thought she had been using work hours for non-work-related matters.

Mr Baker sent an email to Pall Mall Investments, the organisation that had been involved in placing the Dr Luo's investment in the AI company.

He said: "I wanted to advise you that I suspect things will come to a head sometime in the coming weeks regarding Dan Luo and her role in Canterbury Ai Ltd.

"I am hoping not to bring this to a head so fast. Still, I believe that circumstances and her lack of actual contribution to the business, ambition and evidence that has become apparent that she has become a liability to the business.

"We have increased her workload, but we see no change in her attitude and capabilities. This can not continue in this manner for much longer.

"The level of work commitment is that of a school leaver or a school apprentice, but even this is generous, as it is so poor.

"In all my years in business, I have never encountered such a low level of skill and dedication; also, we have an issue where even outside trainers have commented on her level and standard of work.

"She is the bottom line, incredibly lazy woman, and I have this confirmed by others who are external and trained her."

In July 2022, Mr Baker sent an email directly to Dr Luo where he told her about his concerns for her performance and attitude, saying: "I have personally seen you sleeping at your desk, laying down at your desk, leaving early often and most importantly taking an age to do any work and at a standard that is extremely poor.

“What I say now is very important; I would personally be embarrassed to take a salary if I had contributed to the level of what you have since September 2020.

"You have been provided plenty of opportunities and kindness to develop your role within the company both efficiently and to a high standard; instead, you have failed in every single element so far to deliver a level of competency or professionalism.

"In short, I have been carrying you and the company has been carrying you for a long time.

“This email is direct to you and only you; it is a personal email telling you to pull yourself together and start acting as a professional director and be responsible for the business's success.

"You have been a serious financial hindrance to the company for a long time.”

After taking some time off, Mr Baker pressed Dr Luo for a reply, saying that she had 'just disappeared'.

When she replied, he said: “I was bitterly disappointed by the tone and attitude of the email and the unwarranted personal attack.

"Unfortunately, this confirmed that we have no way back from the current position we find ourselves in. I will not work with you from this day forward."

A meeting was conducted without Dr Luo present in September 2022, and it was relayed to her that, as the relationship had broken down, she would be removed as a board director and not a legal director.

Dr Luo noticed in April 2023 that there was a termination of director appointment form uploaded to Companies House and she believed her employment had been terminated.

Employment Judge Gemma Cawthray ruled that Dr Luo had been unfairly dismissed.

She said: "The entire situation, in my objective view, is that the [company] did not take any proper steps to manage any concerns it had about [Dr Luo's] performance and did not take any clear or proper steps to try and resolve the apparent personality clash and Mr Baker’s wish to no longer work alongside [her] or end [her] employment between September 2022 and April 2023.

"In essence, the [company] left [her] in a limbo situation.

"On balance, again on objective assessment, I consider that the lack of any full response to [her] solicitor in February/March 2023 together with the active step of removing [her] from Companies House, in the context of having not paid [her] and the passage of time, is conduct when taken together, which inferred the [company], by April 2023, intended to and ended the employment relationship.

"The [company] clearly no longer intended to be bound by the employment relationship. It was reasonable for [her] to believe this at that time."

Compensation for unfair dismissal is yet to be decided.

Judge Cawthray also found that there was a breach of contract in not giving notice pay and also making unauthorised deductions in wages of £4,333.