Store manager dismissed over cannabis find: misconduct not gross misconduct
A store manager with seven years' service was unfairly dismissed for gross misconduct after failing to report and dispose of cannabis found in the store, but the tribunal found the allegations of offering drugs to staff were not proven.
1 min read · Last updated 18 May 2026
Case details
- #cannabis-found-in-store
- #offering-drugs-to-staff
- #failure-to-dispose
- #gross-misconduct
- #wrongful-dismissal
- #unfair-dismissal
Key facts
- The claimant was employed as a store manager from 31 March 2014 until dismissal on 24 September 2021.
- On 1 September 2021, a bag of cannabis was found in the store by a sales assistant.
- The claimant did not immediately report the find to senior management and asked a junior employee to dispose of the cannabis.
- Two sales assistants alleged the claimant offered them the cannabis for personal use, which the claimant denied.
- The respondent dismissed the claimant for gross misconduct after a disciplinary hearing and appeal.
- The tribunal found the claimant did not offer cannabis to staff, but her handling of the cannabis was misconduct, not gross misconduct.
Timeline
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Employment start
Claimant began employment as store manager at Cruise Clothing Limited.
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Cannabis found
Sales assistant Sydney Elliott found a bag of cannabis in the store. Claimant placed it by the till but took no further action that day.
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Cannabis disposal
Claimant asked sales assistant Jennifer Camm to dispose of the cannabis. Camm took it out of the store and threw it away.
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Management informed
Ms Elliott and Ms Camm reported the incident to management. Area manager James Brennan obtained statements.
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Investigatory meeting
Claimant attended an investigatory meeting with area manager Jonny Walker and was suspended.
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Disciplinary hearing
Disciplinary hearing chaired by Robert Flower. Claimant denied offering cannabis.
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Dismissal
Claimant was dismissed without notice for gross misconduct.
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Appeal hearing
Appeal hearing chaired by Ian Melville. Claimant's appeal was dismissed on 22 October 2021.
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Tribunal hearing day 1
First day of the final hearing before Employment Judge Varnam.
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Tribunal hearing day 2
Second day of the final hearing. Judgment reserved.
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Judgment issued
Reserved judgment issued: unfair dismissal claim dismissed, wrongful dismissal claim succeeded.
The legal issue
The tribunal had to decide whether the claimant's actions in failing to report and dispose of cannabis found in the store, and the alleged offer of cannabis to junior staff, justified dismissal for gross misconduct.
The outcome
The tribunal dismissed the unfair dismissal claim but upheld the wrongful dismissal claim.
- The tribunal found that the claimant did not offer cannabis to staff, but her failure to report and improper disposal of the cannabis was misconduct, not gross misconduct.
- The respondent's decision to dismiss without notice was therefore unreasonable, making the dismissal wrongful.
- Damages for wrongful dismissal are to be determined at a separate remedy hearing.
Lessons & takeaways
- Employers should ensure that disciplinary decisions are proportionate to the misconduct found, especially when the employee has long service and a clean record.
- When investigating allegations, employers must distinguish between proven facts and unsubstantiated claims before deciding on the level of misconduct.
- Employees should be aware that failing to follow company procedures, even in stressful situations, can still be considered misconduct, but may not justify summary dismissal.
A cannabis find that led to dismissal
When a sales assistant found a bag of cannabis in the store, the store manager's response set off a chain of events that ended her seven-year career. Instead of immediately reporting the find to senior management, she placed the bag by the till and later asked a junior employee to dispose of it. Two sales assistants also alleged that the manager offered them the cannabis for personal use, an accusation she consistently denied.
The company dismissed her for gross misconduct, citing both the failure to properly handle the cannabis and the alleged offer to staff. But the tribunal found that the evidence did not support the offer allegation, and that her handling of the cannabis, while wrong, did not amount to gross misconduct.
What the tribunal decided
The tribunal upheld the wrongful dismissal claim because the company's decision to dismiss without notice was outside the range of reasonable responses. The claimant's actions were misconduct, but not so serious as to justify summary dismissal. The unfair dismissal claim was dismissed, however, because the tribunal found that the company had a genuine belief in misconduct and followed a fair procedure.
This case highlights the importance of proportionality in disciplinary decisions. The employer could have considered a lesser sanction, such as a final written warning, particularly given the claimant's long service and the fact that the more serious allegation was not proven.
What this means for similar claims
For employees, this case shows that even when an employer has a genuine concern about misconduct, the response must be proportionate. For employers, it is a reminder that allegations must be carefully investigated and that the label of 'gross misconduct' should not be applied lightly. The distinction between misconduct and gross misconduct can have significant financial consequences, as wrongful dismissal claims can lead to damages for notice pay.
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