Management of a disciplinary process leading to dismissal by the employer

Background

Gannons was approached by an SME client after discovering that a director had been submitting false expense claims. The allegations included claiming for travel and meals that had not occurred, inflating company car mileage and claiming for flights booked for personal trips. This breached the company’s expense policy and raised serious concerns about dishonesty and potential fraud, exposing the business to financial and reputational risks.

We were instructed to guide the employer through the disciplinary process, ensuring procedural fairness, compliance with employment law and appropriate documentation to help minimise the risk of an unfair dismissal claim.

As a small business without a dedicated HR team, the client relied on us to provide the necessary employment law support and practical guidance.

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

Our first task was to review the employer’s existing disciplinary procedure, which had been produced using AI and did not comply with the ACAS Code of Practice on Disciplinary and Grievance Procedures. We worked with the client to update the policy and strengthen its procedures, helping managers understand their responsibilities and apply the process fairly and consistently.

Step 2: Appointment of an investigator 

Impartiality is essential to a fair disciplinary process, particularly where dismissal is a possible outcome. As the client could not afford an independent investigator, we recommended appointing someone from a different department who had no conflict of interest. We also advised separating the roles of investigator, disciplinary decision-maker and appeal officer to support the fairness and credibility of the process.

Step 3: Management of the investigation

We prepared a structured investigation plan covering the allegations, the investigator’s role, the evidence required, potential witnesses and the relevant company policies, including the expense policy and gross misconduct provisions. This provided a clear framework for gathering evidence and establishing the facts.

Step 4: Communications and suspension

We drafted an investigation notification letter explaining the allegations, the investigator’s appointment, the process, expected timescales and confidentiality requirements.

Given the seriousness of the allegations and the potential risk to the business, we advised the employer to consider suspension on full pay pending the investigation. This was intended as a neutral, precautionary measure rather than a disciplinary sanction.

Step 5: Evidence gathering for the disciplinary

The investigator collected receipts, emails, attendance records, vehicle logs and flight bookings. We advised the client on the importance of gathering evidence lawfully and respecting privacy and data protection requirements.

The employee refused access to personal devices. Although reporting the matter to the police was considered in light of the potential fraud, the client decided to continue with an internal investigation.

Step 6: Witnesses

Two colleagues were identified as potential witnesses. One, who was close to the employee, declined to participate because of concerns about retaliation. The other agreed to assist and provided evidence that the employee had submitted claims for flights to conferences they did not intend to attend.

We supported the employer in obtaining a signed witness statement and ensuring that the evidence was properly documented.

Step 7: Conducting investigation meetings

We guided the investigator on conducting professional and fair interviews, including explaining the purpose of meetings, maintaining appropriate confidentiality, asking open questions and accurately recording responses. We also advised on sharing meeting notes with interviewees for verification.

Step 8: Investigation report

Following the interviews and evidence-gathering process, the investigator prepared a report setting out the allegations, investigation steps, evidence considered and findings. The report was submitted to the CEO for consideration as the disciplinary decision-maker.

Step 9: Outcome from the disciplinary investigation 

We advised that the alleged conduct, if established, could amount to gross misconduct due to dishonesty and breach of trust. We explained the importance of applying a fair and reasonable process, particularly given the legal obligations that apply to smaller employers as well as larger businesses.

In light of the evidence, the employer decided to proceed towards dismissal. The CEO also wished to reinforce the company’s approach to similar misconduct in the future, while ensuring that any cases would be assessed fairly on their individual circumstances.

Before the dismissal process was completed, the employee voluntarily resigned and chose not to appeal. This brought the matter to a close without the employer having to complete a formal dismissal.

Key Lessons

This case demonstrates how we support employers without dedicated HR teams through sensitive disciplinary matters. We helped the client establish a compliant process, gather and assess evidence, manage procedural risks and make informed decisions.

Getting the disciplinary process right is not simply a matter of following procedure. It helps employers respond to misconduct fairly, protect their business interests and reduce the risk of employment tribunal claims.