THE boss of Volkswagen Financial Services in the UK will keep his job despite breaching company rules by appointing his son to a senior position within the organisation. The matter came to light when a rival candidate for the position, Elizabeth Smart, took VW Financial Services to an industrial tribunal claiming sexual discrimination.

This led Volkswagen Group (UK) and Volkswagen Financial Services in Germany, parent company of Volkswagen Financial Services UK, to launch an investigation into why Malcolm Hill, managing director of VW Financial Services UK, appointed his son Jason to a district manager's post in a Skoda division of Volkswagen Financial Services.

But speaking at the Frankfurt Motor Show, Richard Ide, managing director of VAG UK, said: 'Both Malcolm Hill and his son will retain their jobs. He made a mistake, but he is an excellent employee.'

VW Financial Services agreed to an out-of-court settlement for an undisclosed sum with Smart on the second day of the tribunal hearing. The tribunal heard that she had been with the company for two years and that company rules stated district managers should be educated to degree level. The tribunal was told that Jason Hill had five O-levels and three months' experience as a £16,000 a year company representative while Smart, who also earned £16,000 performing a similar job, was educated to degree level.