A warehouse manager sacked after he was accused of passing confidential information to a rival company has won £3,519 compensation.

John Walker, 36, of Clarendon Road, Worthing, was dismissed for gross misconduct in December last year by PDQ, an office supplies company.

Mr Walker, who worked for the company for three years, denied passing on private details about customers and prices and claimed at a Brighton industrial tribunal that the firm failed to investigate the allegation fairly.

The tribunal ruled he had been unfairly dismissed.

But the panel decided he was 25 per cent responsible for his dismissal and he had failed at a meeting with bosses to be frank about his friendship with the managing director of a rival firm.

His compensation was reduced by 25 per cent from £4,692.

The tribunal heard there was bad feeling between PDQ, based in Lancing, and rival firm Wave Office Equipment, run by Peter Heff, a former director of PDQ, who left the firm in 1998 and started his own business Mr Walker told the hearing he was a loyal and hardworking member of staff and felt completely baffled when he was accused of passing on information.

He said he believed he was dismissed because he was a friend of Mr Heff, who was a competitor.

He said he had been a friend of Mr Heff for ten years and was aware of "bad blood" between him and PDQ.

He said he would certainly have never passed on information to a rival of the company he worked for.

He said: "I would regard it as unethical to give information to a competitor."

Mark Heading, a director of PDQ, told the hearing he was shocked when he received information that Mr Walker was passing on private details about the firm and said there was no alternative but to sack him.

He said at first PDQ believed it could be a coincidence Mr Heff appeared to have inside knowledge about events in the firm, such a theft of a delivery van and the appointment of a new member of staff.

But it was frustrating and upsetting and the problem was serious as Wave was contacting PDQ's new customers and offering cheaper prices.

At a meeting, Mr Manager denies passing secrets.

Walker "innocently" denied a friendship with Mr Heff but later admitted the relationship.

Mr Heading said: "He admitted it was true and the previous denials were lies.

"It is not our place to tell people who should be their friends. It is no problem for him to socialise with Mr Heff as long as he does not pass on confidential information."

He said since Mr Walker left the company there was no reason to believe information was still leaking out.

Mr Heff told the hearing his business was built on professionalism and he avoided unethical practices.

He added: "This industry had become extremely paranoid about its competitors."

After the hearing Mr Walker said he was pleased with the decision.

He said: "My name has been cleared and I can finally put an end to seven months of heartache, depression and self doubt."