Tim Watts is to take legal action against claimant Debbie Smith, having been cleared of sex discrimination and victimisation at an Employment Tribunal in Birmingham last week.

The claims of sex discrimination and victimisation against a company within the Pertemps Group, as well as claims of sexual harassment against the Pertemps chairman were ruled as totally unfounded.

Smith was employed as managing director of a company within the Pertemps Group. She had been dismissed in 2009 after the franchising business made a loss of £250,000.

Ms Smith made allegations of sexual harassment against Watts, whom she had met on only a handful of occasions.

The Tribunal concluded that her allegations had been made in bad faith stating that her grievance had been put forward as a bargaining chip to seek a negotiated settlement. In summary, the Tribunal decided that Smith had been “out to get” Watts.

The Tribunal also described Watts as someone who wants others to succeed and is helpful in mentoring others to succeed and remarked on his trait of enabling people to achieve their goals. It commented that there was a clear picture of Pertemps as not having a regime or culture of sex discrimination and/or sexual harassment.

Watts said: “I am delighted by the judgement and the fact that the truth has now come out. Debbie Smith no doubt thought that I was an easy target. Myself and my organisation have had to endure months of adverse publicity in order to uphold our reputation as a family company with real family values.

“The system has to change. I was humbled by how many of my colleagues volunteered to come to the Tribunal and tell the truth about Pertemps but the cost in legal fees and time would be way beyond the means of many people and many organisations. I would like to see vexatious spongers like Debbie Smith brought to book and I will be instructing my lawyers to take action against her.”