This is all well and good, but let me take the names KP and ECB out and replay what has happened here. In the case below I reckon you'd have all sorts of discrimination and constructive dismissal claims going on.
Hi Employee No 576, we believe that you have been talking to our competitor and giving away trade secrets. That is gross misconduct and would normally result in a us sacking you. Please hand over any evidence you have of such activity.
I haven't undertaken what you have accused me of, and therefore I have no evidence to show you that I have given away trade secrets.
Hmm, okay, well we also have evidence of you being nasty about our Sales Manager, so we are going to suspend you with full pay until we have decided what to do with you.
That's not fair, but do I have a choice? Didn't think so. Well you will be losing your most productive employee while you do that, but if that's what you want to do...
Right employee no. 576, we have decided that you need to apologise to the MD for your behaviour to those it has affected, and then we'll allow you to come back to work.
Okay, I enjoy working here and I believe that I can be the best employee ever and will go down in the history books so I will accept your terms, even if I don't like them.
Fast forward 18 months....
Employee number 576, the last six months have been terrible for the firm, so we have to let you go. You are being sacked and we will never have you working for us again as it's all your fault. We don't care about your reputation and how you make our competition feel.
You guys are crazy. How do you expect to win business without me?
Number 576, that's the way it works. Goodbye.
You cretinous fools, I'll go to a tribunal. I'll go public. You'll see. I'll make you a laughing stock.
Not if we make sure that you're discredited first.
Goes to papers
A year later and the company senior management is replaced
Hi ex-employee 576, I'm the new CEO, and I've always admired the work you did for us. It would be great to have you doing that properly for us again, but I can't afford to pay you to do it yet. I understand we have an opening with a subsidiary, but we aren't able to pay you what you've been earning after you found a new job. Would you mind working for free for a little bit, demonstrating how good you are and then when I get an opening, I'll re-employ you?
Sounds good to me Mr CEO. I'd be happy to.
Fantastic.
Goes away and demonstrates emphatically how good at improving business he is
Hi ex-employee 576, I'm the new Sales Director. I'm the Sales Manager you were rude about. I'd like to have a meeting with you next week to discuss how we work with you.
Okay...
Monday meeting takes place
I'm sorry ex-employee 576, I just don't trust you, and as I don't trust you, we can't employ you in the role you did before. We wouldn't mind if you assisted the specialist sales team though.
But I've been working for your subsidiary for free and making them loads of money doing what I do best? What are you playing at?
As I said, I'm sorry, but I can't employ you for the next six months in the role you did before. You were nasty about me and I don't trust you.
You realise how much you've cost me?
As I said, I'm sorry, but I can't employ you for the next six months. You were nasty about me and I don't trust you.
Ah stuff you and your specialist sales team.
Ex-employee 576 walks away fuming