A former chief executive has claimed he was the victim of unfair dismissal, the Guernsey Press and Star reports.
Nigel Jones, who was employed by CI Traders, states that a letter he received following a company takeover made it clear to him that he was no longer employed by the firm.
He stated: "I regarded the letter of 25 July to have terminated my contract on a date to be triggered by the date of the takeover of CI Traders, which turned out to be August 3rd."
Mr Jones had been employed by ComProp, a subsidiary of CI Traders.
However, ComProp denies that the letter was one of dismissal and argues that Mr Jones had been an employee of it, not CI Traders.
An employment tribunal concerning the case is still underway.
Recently, Consult Gee suggested that the maximum amount of compensation handed out to victims of unfair dismissal had risen by 473 per cent over the last ten years, PersonnelToday.com reported.