Practice manager unfairly dismissed after hub pay dispute: breakdown in relationship was real reason
A practice manager with 4.5 years' service was unfairly dismissed after a dispute over pay for work at an Improving Access Hub. The tribunal found the real reason was a breakdown in the relationship, not misconduct. She was awarded £24,440.
1 min read · Last updated 18 May 2026
Case details
- #practice-manager
- #improving-access-hub
- #overpayment-allegation
- #breakdown-in-relationship
- #police-investigation-no-action
- #sick-pay-dispute
Key facts
- The claimant was employed as Practice Manager from June 2017 until dismissal on 20 January 2022.
- The claimant was dismissed for allegedly overpaying herself for work at the Improving Access Hub and paying herself directly rather than through payroll.
- The tribunal found that the rates of pay for the Hub work were agreed and the invoicing method was permitted.
- The real reason for dismissal was the breakdown in the relationship after June 2021, not the alleged misconduct.
- The claimant's claim for breach of contract regarding sick pay was dismissed.
- The claimant was awarded a basic award of £3,264 and a compensatory award of £21,176.23.
Timeline
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Employment started
Claimant commenced employment as Practice Manager.
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Agreed to work at Hub
Claimant agreed to do reception work at the Improving Access Hub.
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First Hub shift
Claimant's first shift at the Hub; she submitted invoices at £21 per hour.
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Respondent's marriage breakdown
Respondent took leave; claimant gained authority over payments.
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Pay increase to £25 per hour
Claimant says respondent agreed to increase her Hub pay to £25 per hour.
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Finance Manager joined
Karen Kenney joined as Finance Manager; claimant discussed invoicing arrangement with her.
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Relationship breakdown
Claimant asked about respondent's relationship with colleague; atmosphere became tense.
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Return to office request
Respondent required claimant to work in the practice immediately.
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Flexible working request
Claimant submitted formal flexible working request; not acknowledged.
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Suspension
Claimant suspended pending investigation into conduct.
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Dismissal
Claimant dismissed without notice for gross misconduct.
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Police visit
Police visited claimant regarding theft/fraud allegations; later dropped.
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Tribunal hearing
Substantive hearing held on 10 and 11 November 2022.
The legal issue
The tribunal had to decide whether the practice manager was unfairly dismissed for alleged misconduct (overpaying herself for hub work) and whether the employer had a genuine belief based on reasonable grounds after a reasonable investigation. It also considered a claim for contractual sick pay.
The outcome
The tribunal decided that the practice manager was unfairly dismissed. The key reason was that the real reason for dismissal was not the alleged misconduct but a breakdown in the relationship after June 2021. The employer's investigation was not reasonable, and the belief in misconduct was not genuinely held. The claim for breach of contract regarding sick pay was dismissed.
Compensation breakdown:
- Basic award: £3,264
- Compensatory award: £21,176.23
- Total award: £24,440.23
Lessons & takeaways
- If a relationship breaks down, employers should consider alternatives to dismissal, such as mediation or redeployment, especially for long-serving employees.
- A genuine belief in misconduct must be based on a reasonable investigation; relying on assumptions without proper evidence can lead to an unfair dismissal finding.
- Employees should ensure any agreed pay rates and invoicing arrangements are documented in writing to avoid disputes.
- Employers should not use misconduct allegations as a pretext for dismissing an employee when the real issue is a breakdown in trust and confidence.
When a breakdown in relationship is the real reason for dismissal
This case shows how a dispute over pay arrangements can mask a deeper breakdown in the working relationship. The practice manager, who had 4.5 years' service, was dismissed for allegedly overpaying herself for work at the Improving Access Hub and paying herself directly rather than through payroll. However, the tribunal found that the rates of pay had been agreed and the invoicing method was permitted. The real reason for dismissal was the breakdown in the relationship after June 2021, when the manager asked about the GP's relationship with a colleague.
What the employer could have done differently
The employer could have avoided this outcome by conducting a more thorough investigation. The tribunal noted that the employer did not properly consider the manager's explanation that the pay rates were agreed and the invoicing method was permitted. A reasonable investigation would have examined the documentary evidence and spoken to relevant witnesses, such as the Finance Manager who was aware of the arrangement. Instead, the employer jumped to conclusions and used the misconduct allegation as a reason to dismiss when the real issue was a loss of trust.
Why this result matters for similar claims
This case reinforces that tribunals will look behind the stated reason for dismissal to determine the real reason. If the real reason is a breakdown in the relationship, the employer must show that it acted reasonably in treating that as a sufficient reason for dismissal. For employees in similar situations, it is important to keep records of any agreed pay arrangements and to raise concerns about the investigation process. The award of £24,440 reflects the losses suffered, including the basic award and compensation for lost earnings.
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