Deputy CEO dismissed for claiming nursery fees from charity she founded
A deputy chief executive with 12 years' service was dismissed for gross misconduct after claiming nursery fees from the charity she helped establish. The tribunal upheld the unfair dismissal claim but awarded £4,296 for wrongful dismissal and a defective written statement.
1 min read · Last updated 18 May 2026
Case details
- #charity-trustee
- #nursery-fees
- #dual-role
- #accounts-sign-off
- #acas-code-uplift
Key facts
- The claimant was a trustee and Deputy CEO of the respondent charity.
- She claimed and received nursery fees for her son from the charity between March and September 2020.
- The charity's annual accounts stated no trustees had received other benefits, which was incorrect.
- The claimant was dismissed for gross misconduct after a disciplinary hearing.
- The appeal panel found the claimant was not dishonest but upheld the dismissal.
- The tribunal found the dismissal fair for unfair dismissal purposes but awarded damages for wrongful dismissal.
Timeline
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Charity established
The claimant and her mother established the respondent charity.
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Claimant became trustee
The claimant became a trustee of the charity.
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Claimant employed as Family Support Director
The claimant became an employee, later becoming Deputy Chief Executive.
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Nursery fees claimed
The claimant began claiming nursery fees for her son from the charity, totalling £2,439.50 by September 2020.
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Annual accounts signed
The claimant signed the charity's annual accounts stating no trustees had received other benefits.
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Staff complaints
Staff made complaints about the claimant and her mother's management.
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Claimant suspended
The claimant was suspended pending investigation.
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Investigation meeting
The claimant attended an investigation meeting regarding the nursery fees.
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Dismissal
The claimant was summarily dismissed for gross misconduct.
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Appeal hearing
The appeal hearing was held; the dismissal was upheld.
The legal issue
The tribunal had to decide whether the dismissal was fair (conduct) and whether the employer was entitled to dismiss without notice (wrongful dismissal). It also considered a claim for a defective written statement of employment particulars.
The outcome
The tribunal dismissed the unfair dismissal claim, finding the employer had a genuine belief in the claimant's misconduct and followed a reasonable procedure. However, it upheld the wrongful dismissal claim because the employer did not show that the claimant's actions amounted to gross misconduct justifying summary dismissal.
Compensation:
- Wrongful dismissal: £3,220 (7 weeks' notice pay)
- Defective written statement: £1,076 (2 weeks' pay uplift)
- Total: £4,296
Lessons & takeaways
- Even if a dismissal is fair under the Employment Rights Act, an employer may still be liable for wrongful dismissal if they fail to prove gross misconduct justifies summary dismissal.
- Employees who are also trustees should ensure any benefits received are properly declared and authorised to avoid allegations of misconduct.
- Employers should carefully consider whether misconduct is serious enough to justify dismissal without notice, as the burden of proof is on them.
- A defective written statement of employment particulars can result in an additional award of up to four weeks' pay.
A dual role and a nursery fees dispute
The claimant was not just an employee but also a trustee and co-founder of the charity. She claimed nursery fees for her son between March and September 2020, totalling £2,439.50, and signed off annual accounts stating no trustees had received other benefits. When staff complaints emerged, the charity investigated and dismissed her for gross misconduct.
What the tribunal decided
The tribunal found the dismissal was fair for unfair dismissal purposes. The employer had reasonable grounds to believe the claimant had committed misconduct, and the investigation and disciplinary process were within the range of reasonable responses. However, the employer failed to show that the misconduct was so serious that it justified summary dismissal without notice. The claimant had 12 years' service and no previous disciplinary issues, and the appeal panel had found she was not dishonest. Therefore, the claimant was entitled to notice pay.
Why this matters
This case highlights the distinction between unfair dismissal and wrongful dismissal. Even where an employer acts reasonably in dismissing for conduct, they may still be liable for failing to give proper notice if the misconduct does not meet the high threshold of gross misconduct. For employees in dual roles, it also underscores the importance of transparency and proper authorisation for any benefits received from the employer.
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