Yes, held the EAT in Anderton v Chesterfield High School.
The Claimant had been employed at the school by Sefton Council whilst at the same time being an elected councillor in neighbouring Liverpool and had been permitted the usual paid leave to perform councillor duties. In 2011 Chesterfield School became an independent Academy and in 2012 the Claimant was elected as full time Mayor of Liverpool following which he was dismissed by the school.
The employment tribunal agreed the dismissal was unfair but made a 100% Polkey deduction on the basis that the facts amounted to 'some other substantial reason' justifying dismissal and Judge Serota agreed.
An arrangement for a school to pay an elected official of a neighbouring local authority without him having to provide any services for the school might lead to significant criticism if the arrangement became public. The school was reasonably entitled to regard any such arrangement as inequitable and unsustainable and it could be regarded by members of the public as a misapplication of public monies.
Other local authorities looking at elected Mayors will no doubt take note.