Head of Sales dismissed for releasing vehicle: unfair but no compensation

A flawed process that still cost the employee nothing

This case shows how procedural fairness can make the difference between a fair and unfair dismissal, even when the employee has admitted a serious mistake. The Head of Sales at a BMW dealership released a vehicle to a customer despite being told not to do so without authority. He admitted it was a grave error. But the way the employer handled the disciplinary and appeal process turned what could have been a fair dismissal into an unfair one.

The tribunal identified two key procedural flaws. First, the dismissing officer relied on 'wider issues' that had never been put to the employee during the hearing. Second, the appeal officer decided that the employee had acted 'consciously' — a finding of deliberacy — without giving the employee any opportunity to address that point. These failures meant the dismissal fell outside the range of reasonable responses.

What the employer could have done differently

Pendragon Plc could have avoided the unfair dismissal finding by ensuring that all concerns were shared with the employee before the decision was made, and by keeping the appeal process focused on the same grounds as the original hearing. The inconsistent treatment of a more senior manager who handled a similar transaction on the same day but was not dismissed also weakened the employer's case. A fair process would have considered whether the employee's role and level of responsibility justified different treatment.

Why the result matters

This case is a reminder that procedural fairness is not just a formality — it is a legal requirement. Even where an employee admits misconduct, the employer must still follow a fair process. However, the outcome also shows that a successful unfair dismissal claim does not always lead to compensation. The tribunal applied a 100% reduction for contributory conduct, meaning the employee received nothing. Employees considering a claim should be aware that their own behaviour can wipe out any financial award, even if the dismissal is found to be unfair.