Management of a disciplinary process leading to dismissal by the employer

Background

Gannons was approached by an SME client following the discovery that a director had been submitting false expense claims. The allegations included claiming travel and meal expenses that had never occurred, inflating company car mileage and flights booked for personal trips. These actions breached the company’s expense policy and amounted to dishonesty and potential fraud, posing both financial and reputational risks.

We were instructed to guide our client through the disciplinary procedure from start to finish. Our objectives were to ensure a compliant process, maintain procedural fairness and document all steps to protect the business from potential claims of unfair dismissal or breaches of employment rights. 

As a small business without a dedicated HR team the client relied on us to bridge the gap for them. 

Step 1: Reviewing the existing disciplinary procedure for operated by the employer

Our first task was to review our the employer’s existing disciplinary procedure, which had been produced using AI and did not comply with the ACAS Code of Practice on Disciplinary Procedures. We worked closely with our client to update the policy, ensuring any actions taken would be legally robust and procedurally sound.  We dealt with the education of managers as they need to have an awareness in the modern world.

Step 2: Appointment of an investigator 

Impartiality is central to a fair process especially where the outcome could be dismissal from employment. The client did not the budget for an independent investigator, so we recommended appointing an investigator from a different department to eliminate conflicts of interest. We also ensured that the investigator, decision-maker and appeals officer were separate individuals. This safeguarded both the credibility of the investigation and any eventual disciplinary outcome.

Step 3: Management of the investigation

We created a structed investigation plan for the investigator that could be relied upon if there was a dismissal from employment. The aim was to outline the allegations, the investigator’s role, a timeline for evidence collection and interviews, and the key policies to reference, including the expense policy and gross misconduct framework. The investigation plan also identified the facts to be established, the evidence required and potential witnesses.

Step 4: Communications and suspension

We drafted an investigation notification letter to the accused employee and all individuals involved in the investigation process. Our letter explained the nature of the investigation, the appointed investigator, the process, timeline, confidentiality obligations and the right to be accompanied.

Given the seriousness of the allegations and the risk of disruption at work, we advised the employer to suspend the accused employee on full pay pending the outcome of the investigation. This was a proportionate and protective measure.

Step 5: Evidence gathering for the disciplinary

The investigator collected receipts, emails, attendance records, vehicle logs and flight bookings. We advised our client that evidence must be gathered lawfully and with respect for privacy. The accused employee refused access to personal devices and although police involvement was an option due to the potential fraud, our client chose to continue internally.

Step 6: Witnesses

Two colleagues were identified as potential witnesses to support the employer. One colleague, close to the accused, declined to testify due to threats of retaliation but the other colleague agreed to participate and confirmed that the employee submitted false claims for flights to attend conferences they never intended to attend. We assisted the witness in preparing a signed witness statement in support of our client’s claim. 

Step 7: Conducting investigation meetings

We guided the investigator on how to conduct professional and compliant interviews, including explaining the purpose and confidentiality of meetings, asking open questions, accurately recording responses and sharing notes with interviewees for verification.

Step 8: Investigation report

After completing interviews and evidence collection, the investigator produced a detailed report outlining confirmed and unconfirmed facts, the investigation process, evidence assessed, conclusions and recommended actions. The report was then submitted to the CEO, the decision-maker.

Step 9: Outcome from the disciplinary investigation 

Our advice was that the conduct constituted gross misconduct, specifically dishonesty and breach of trust. We explained that the Employment Tribunal set high standards even from small employers. With that knowledge, given the severity and clarity of the evidence, a decision was made to proceed with dismissal. The CEO was also keen to set a clear precedent that any other employees engaging in similar behaviour would face comparable consequences. There was a result for the employer as before formal dismissal could be completed, the accused employee voluntarily resigned and chose not to appeal the decision which was good news for the employer.  

Key Lessons

This case highlights how we help employers to cope when they do not have HR departments. We provide that all important layer needed to avoid employment law claims. Our role kept the process fair, thorough and defensible, all of which are important is the employer is to avoid a claim for unfair dismissal.  

Getting the employment disciplinary process right isn’t just a legal necessity - it’s a business imperative.