Goldman Sachs Under Fire: Employee Sues Bank After Getting Fired Post Paternity Leave

Reeves claims he was informed shortly before his return that his position was at risk and that he had underperformed for the first time in his 15-year career

New parents in the UK typically enjoy more extended leave than their counterparts in the US

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A former manager at Goldman Sachs Group has lodged a £3.8 million ($5 million) sex-discrimination lawsuit against the investment bank, alleging wrongful termination linked to his six-month paternity leave.  Jonathan Reeves, who served as a vice president in Goldman’s compliance department in London, asserts that he was dismissed shortly after returning from his leave in 2022, as detailed in court filings prepared for a hearing on Thursday, according to a report in Bloomberg.

The bank has denied the allegations, contending that Reeves was terminated due to longstanding performance issues. In contrast, Reeves asserts that the true motivation behind his dismissal was the bank's disapproval of male employees taking extended leave following the birth of their children.

He “experienced members of the bank’s senior management displaying negativity toward male employees who take extended periods of parenting leave, and toward male employees facing childcare issues more generally,” his lawyers said in court documents. 

Reeves claims he was informed shortly before his return that his position was at risk and that he had underperformed for the first time in his 15-year career. His termination was confirmed less than five weeks later, with his lawyers arguing that a female employee in a similar role would not have faced such swift action.

Amid these developments, Wall Street banks are increasingly competing to enhance benefits for secondary caregivers, with Citigroup among those expanding parental leave policies this year. 

New parents in the UK typically enjoy more extended leave than their counterparts in the US. The new Labour government is also planning to strengthen rights to paternity leave and unpaid parental leave from the outset of employment, aligning these benefits more closely with maternity leave provisions.

“Goldman Sachs introduced a market-leading right to 26 weeks paid parental leave to all new parents in 2019, and we encourage all our employees to take it. This leave benefits working fathers, as well as working mothers,” a spokesperson for the bank said in a statement.

Goldman's lawyers argued in court filings that the critiques of Reeves' performance were related to his specific role and not influenced by his gender, noting that his performance was assessed in comparison to both male and female colleagues. They further stated that following Reeves' dismissal, the firm discovered he had committed a "serious breach" by secretly recording at least five conversations and meetings during his tenure as a compliance officer.

Reeves' financial claim encompasses lost earnings, retirement contributions, and the stigma associated with his firing, which he contends has resulted in several unsuccessful job applications.