The dispute arose as Sim claimed that - following on from his conviction for assault - he was given reassurances that his fellow agency directors would find a position for him within LOVE's group of businesses, once the furore surrounding the incident had died down.
They denied any agreement was ever in place and insisted that his full resignation - announced via a statement in the aftermath of the conviction - stood.
It is understood that he has never received any financial settlement for his share of the business.
When contacted by How-Do Sim said: “I’m very disappointed in the outcome of the tribunal.
"While it may be deemed the appropriate verdict according to the letter of the law, I cannot help but think I would never have treated one of my fellow directors or staff in the way I’ve been dealt with.
"Nevertheless, I now have to accept the verdict and move on, and that is exactly what I intend to do.”
A decision was originally expected in the case in October, it is not currently clear why this was delayed.
LOVE has issued this statement with regards to the ruling:
"LOVE are pleased with the verdict of not guilty for unlawfully dismissing Alistair Sim. The judgement was reached by three independent employment specialists at an industrial tribunal in Manchester.
"During 2009 LOVE have got on with what they do best, great creative work for globally renowned clients such as Sony Playstation, Umbro and Dr Martens.
"The agency has also quietly got its house in order and as a result have a strong management team and a great bunch of talented people working there. This diligent team have weathered the wider global climate and come out on top.
"This result gives LOVE a positive kick start to 2010. "
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