As David conducts the annual staff appraisals he discovers that the group from Swindon are less than impressed with their new boss and a lunchtime trip to the pub does little to improve the situation. The same cannot be said for Tim however, who is getting on particularly well with new girl Rachel.

A colleague's birthday provides a welcome distraction for the employees of Wernham Hogg and leads to a series of practical jokes at the expense of David and Gareth. Meanwhile, David's growing frustrations with new boss Neil constantly looking over his shoulder are somewhat alleviated by the arrival of two representatives from a public speaking company who seem keen to recruit him.

David's preparations for his first motivational training seminar that evening don't get off to the perfect start when he first discovers the staff's new nicknames for him that are doing the rounds and then receives another reprimand from Neil for neglecting his duties. Meanwhile, Tim and Rachel finally go public with their relationship, much to the dismay of Gareth.

It's Comic Relief Day and the staff of Werhnam Hogg all do their bit to raise money including Dawn, whose 'kisses for 1' stand finally provides Tim with the opportunity he's been waiting for. But when David can only produce a draft of his new gameshow concept in place of an important company report, Neil and Jennifer draw the line and inform him that he is being made redundant.

Although slightly peeved that the staff seem to be taking his redundancy in their stride, David's spirits remain high as he plans his future while also being interviewed for an article in 'Inside Paper'. Tim takes drastic action when he learns that Dawn has resigned in order to move to the USA with boyfriend Lee. However, when David is told that his services as a motivational speaker are also no longer required he sinks to his lowest ebb and begs Neil to reconsider the dismissal. But is it too late?