Claimant won Employment Tribunal · 21 June 2023

Long-serving store manager unfairly dismissed after employer failed to consider her mental health

A retail store manager with 16 years' service was unfairly dismissed for gross misconduct after the employer failed to obtain medical advice about her depression and anxiety. The tribunal found the dismissal unfair and wrongful, with compensation reduced by 20% for Polkey and 50% for contributory conduct.

1 min read · Last updated 18 May 2026

Case details

Key facts

  • The claimant was employed as a Retail Store Manager from 5 May 2006 to 14 November 2022.
  • She failed to complete incident report forms for 64 out of 65 banking discrepancies and did not reconcile petty cash monthly.
  • The claimant suffered from depression and anxiety, which she raised as a factor affecting her work.
  • The dismissing manager did not obtain medical advice before deciding to dismiss.
  • The tribunal found the dismissal unfair because the employer failed to properly consider the claimant's mental health.
  • The claimant was also wrongfully dismissed as her conduct did not amount to gross misconduct.

Timeline

  1. Employment start

    Claimant began working for EE Limited as a Retail Store Manager.

  2. Banking discrepancies begin

    Between this date and 30 September 2022, 65 banking discrepancies occurred, totalling £4,975.57.

  3. Mental health crisis

    Claimant's mental health deteriorated, culminating in suicidal thoughts.

  4. Compliance alerted

    Mya Summers was contacted about cash discrepancies and petty cash issues at the Sunderland store.

  5. Unannounced investigation visit

    Mya Summers visited the store and interviewed the claimant about the discrepancies.

  6. Disciplinary invite

    Gemma Lee sent the claimant a letter outlining allegations of misconduct.

  7. Disciplinary hearing

    Claimant attended a disciplinary hearing with Gemma Lee, accompanied by a colleague.

  8. Dismissal

    Claimant was summarily dismissed for gross misconduct.

  9. Appeal hearing

    Jason Bray heard the claimant's appeal against dismissal.

  10. Claim presented

    Claimant presented her claim to the employment tribunal.

The outcome

The tribunal upheld the claimant's claims of unfair dismissal and wrongful dismissal.

The key reasons were:

  • The dismissing manager did not obtain any medical advice before deciding to dismiss, despite the claimant having raised her depression and anxiety.
  • The claimant's conduct did not amount to gross misconduct, so summary dismissal was too harsh.

Compensation was reduced as follows:

  • Basic award reduced by 50% for contributory conduct.
  • Compensatory award reduced by 20% (Polkey) and a further 50% for contributory fault.

Lessons & takeaways

  • Employers must consider an employee's mental health and obtain medical advice before dismissing for conduct, especially where the employee has raised health issues.
  • Long-serving employees with a good record are entitled to a thorough process; failure to follow policies can render a dismissal unfair.
  • Conduct that is not dishonest or deliberate may not amount to gross misconduct, even if it involves repeated failures.
  • Employees should raise health issues formally and seek support to ensure they are documented and considered.

When process fails to account for health

This case shows what can happen when an employer rushes to judgment without considering an employee's mental health. The claimant, a retail store manager with 16 years' service, had a history of depression and anxiety that worsened in July 2022, leading to suicidal thoughts. She raised her mental health with her line manager. Yet when she was later dismissed for failing to complete incident reports for 64 out of 65 banking discrepancies, the dismissing manager did not seek any medical advice or consider how her condition might have affected her performance.

What the employer could have done differently

EE Limited, a large employer with access to occupational health, could have obtained a medical report before making the decision to dismiss. The tribunal noted that the claimant's conduct was not dishonest or deliberate; it was a failure to follow procedures at a time when she was struggling. A proper investigation into her health, and a reasonable adjustment such as additional support or a warning, might have avoided the dismissal. The appeal process also failed to remedy the original errors.

Why this matters for similar claims

This decision reinforces that employers must take mental health seriously in disciplinary processes. Even where there is clear misconduct, a failure to consider the employee's health can make a dismissal unfair. The Polkey reduction of 20% reflects the chance that the claimant could have been fairly dismissed even with proper process, and the 50% reduction for contributory conduct acknowledges her own responsibility. However, the core finding is that a fair process requires more than just ticking boxes—it requires genuine engagement with an employee's wellbeing.

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