Dismissed for keeping commission overpayments he knew were not due: employer acted fairly
A commercial development executive with 8 years' service was fairly dismissed after he failed to report three commission overpayments totalling £6,049.83 that he knew he was not entitled to. The tribunal rejected his unfair dismissal claim.
1 min read · Last updated 18 May 2026
Case details
- #gross-misconduct
- #dishonesty
- #overpayment
- #inconsistency
- #acad-code
Key facts
- The claimant received three commission payments totalling £6,049.83 that he knew he was not entitled to.
- He did not declare the payments to his employer, intending to raise them after resolving a pay dispute.
- The employer discovered the overpayments and dismissed the claimant for gross misconduct.
- The claimant argued he was entitled to the payments as bonuses under his contract, but the tribunal found he knew at the time they were not due.
- Another employee who received overpayments was treated differently because she had a contractual entitlement to commission and was on sabbatical.
Timeline
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Employment started
Claimant began employment with Bristol Distribution Ltd.
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TUPE transfer to DPD
Claimant transferred to DPD Group UK Ltd under TUPE regulations.
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First overpayment received
Claimant received a commission payment he was not entitled to.
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Second overpayment received
Claimant received another commission payment he was not entitled to; he noticed both payments but did not report them.
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Third overpayment received
Claimant received a third commission payment he was not entitled to.
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Meeting with line manager
Ms Wilson raised the overpayment issue; claimant disclosed two further payments and offered repayment.
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Suspension
Claimant was suspended pending investigation into alleged dishonesty.
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Investigation meeting
Claimant attended investigation with Mr Fenn; admitted knowing payments were not due.
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Disciplinary hearing
Mrs James chaired the hearing; claimant admitted he knew he was not entitled to the payments.
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Dismissal
Claimant was dismissed for gross misconduct.
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First appeal hearing
Mr Philips heard the appeal; upheld dismissal but acknowledged procedural flaws.
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Second appeal hearing
Ms Hughes heard the final appeal; upheld dismissal.
The legal issue
The tribunal had to decide whether the employer's investigation and decision to dismiss for dishonesty were within the range of reasonable responses, given the claimant's admission and the differing treatment of another employee who had a contractual entitlement to the overpayments.
The outcome
The tribunal dismissed the claimant's complaint of unfair dismissal. It held that DPD Group UK Ltd had a genuine belief in the claimant's misconduct based on reasonable grounds, following a reasonable investigation. The key reason was the claimant's own admission that he knew the commission payments were not due to him, yet he did not report them. The differing treatment of another employee was justified because she had a contractual right to the payments and was on sabbatical. No compensation was awarded as the claim failed.
Lessons & takeaways
- If you receive a payment you know is not due, report it immediately — failing to do so can be treated as dishonesty, regardless of your intentions.
- An employer's decision to dismiss may be fair even if there are procedural flaws, as long as the overall process and outcome are reasonable.
- Inconsistency in treatment of employees is not automatically unfair if there is a material difference in their circumstances, such as contractual entitlement.
- Admitting to knowing a payment was not due, even if you planned to raise it later, can be fatal to an unfair dismissal claim.
When keeping quiet about an overpayment costs you your job
This case shows how a seemingly temporary decision — to hold onto commission payments you know are not yours — can lead to dismissal for gross misconduct. The claimant, a commercial development executive with eight years' service, received three overpayments totalling over £6,000. He did not report them because he planned to raise the issue after resolving a separate pay dispute. But when his employer discovered the overpayments, it dismissed him for dishonesty.
What the employer did right
DPD Group UK Ltd carried out an investigation, held a disciplinary hearing, and gave the claimant two levels of appeal. Crucially, the claimant admitted in the investigation that he knew the payments were not due. The tribunal accepted that the employer genuinely believed he had acted dishonestly, and that belief was reasonable. The fact that another employee who received overpayments was treated differently did not make the dismissal unfair — that employee had a contractual right to the payments and was on sabbatical, so her situation was materially different.
Why the claim failed
The tribunal found that the employer's decision to dismiss was within the range of reasonable responses. The claimant's own admission was the key factor. Even though he argued he intended to repay the money, the tribunal noted he had kept quiet for months and only disclosed the payments when confronted. The employer was entitled to conclude that this amounted to gross misconduct. The case is a reminder that honesty and transparency are expected from the moment an error is discovered, not when it suits the employee.
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