General manager dismissed for after-hours drinking and discount misuse: dismissal fair, but deductions unlawful
A tribunal upheld the dismissal of a general manager who stayed drinking after the 10pm COVID curfew and misused staff discounts, but awarded £2,311.72 for unlawful deductions from wages.
1 min read · Last updated 18 May 2026
Case details
- #alcohol-at-work-policy
- #dine-with-us-discount-abuse
- #stock-loss
- #covid-19-curfew
- #acas-code-uplift
- #wrongful-dismissal
- #unauthorised-deductions
Key facts
- The claimant was employed as General Manager from 9 March 2015 to 27 April 2021.
- The respondent operated a Dine with Us discount scheme which was misused by staff including the claimant.
- CCTV footage showed the claimant and staff consuming alcohol after the 10pm COVID-19 curfew.
- The claimant was dismissed for gross misconduct after a disciplinary hearing she did not attend.
- The tribunal found the dismissal fair but upheld a claim for unlawful deduction of £731.72 for stock loss.
- The claimant was awarded £1,580 for unpaid holiday pay for 5 days carried over from 2020.
Timeline
-
Employment start
Claimant began employment as General Manager at O'Neill's Wardour Street.
-
10pm curfew announced
Government announced pubs must close by 10pm due to COVID-19.
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Incident after curfew
Claimant and staff remained on premises until 1am, consuming alcohol after 10pm.
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Another after-hours incident
Claimant's friends stayed after 10pm; Dine with Us discount misused.
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Investigation visit
Mr Hughes visited site and interviewed staff about discount misuse.
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Claimant suspended
Claimant suspended following investigation meeting.
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Disciplinary hearing invited
Claimant invited to disciplinary hearing on 4 December 2020.
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First hearing postponed
Claimant unable to attend due to family bereavement.
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Disciplinary hearing in absence
Hearing proceeded without claimant; she was dismissed for gross misconduct.
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Appeal lodged
Claimant appealed dismissal.
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Appeal rejected
Appeal outcome upheld dismissal.
The legal issue
The tribunal had to decide whether the claimant was unfairly dismissed for misconduct, whether the employer breached contract by dismissing without notice, and whether deductions from wages for stock loss and sick pay were unlawful.
The outcome
The tribunal dismissed the unfair dismissal claim, finding that the employer had a genuine belief in the claimant's gross misconduct based on a reasonable investigation. The claims for wrongful dismissal (notice pay) and unlawful deductions for sick pay also failed.
However, the tribunal upheld two claims for unauthorised deductions:
- £731.72 for stock loss deducted without the claimant's agreement or contractual authority
- £1,580.00 for 5 days of holiday pay carried over from 2020 that was not paid on termination
Total awarded: £2,311.72
Lessons & takeaways
- Employers can fairly dismiss for misconduct even if the employee does not attend the disciplinary hearing, provided they have given a reasonable opportunity to attend.
- Deducting money from wages for stock loss without clear contractual authority or the employee's written agreement is likely to be an unlawful deduction.
- Holiday pay carried over from previous years must be paid on termination if the employee was unable to take it due to COVID-19 or other reasons.
- Misuse of staff discounts and breaches of COVID-19 regulations are serious misconduct that can justify dismissal for a general manager.
What this case shows in practice
A general manager with six years' service was dismissed after an investigation revealed she had stayed on the premises drinking after the 10pm COVID curfew and had misused the staff 'Dine with Us' discount scheme. The tribunal accepted that these were serious breaches of policy that could have jeopardised the pub's licence. The employer's decision to dismiss was within the range of reasonable responses, even though the disciplinary hearing went ahead in the claimant's absence after she failed to attend a rearranged date.
What the losing side could have done differently
The employer was successful in defending the unfair dismissal claim, but it fell down on two points of wage law. First, it deducted over £700 from the claimant's final pay for stock loss without any contractual right or written agreement. Second, it failed to pay five days of holiday that had been carried over from 2020 – a common issue during the pandemic. Employers should ensure that any deductions from wages are clearly authorised by the contract or by law, and that accrued holiday is paid on termination.
Why the result matters for similar claims
This case is a reminder that even where a dismissal is fair, employers can still be ordered to pay compensation for unlawful deductions. For employees, it shows that while a misconduct dismissal may be upheld, you may still have valid claims for unpaid wages or holiday pay. The total award of £2,311.72 is modest, but it highlights the importance of checking your final pay slip and contract terms if you believe deductions have been made without proper authority.
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