Sales manager dismissed for pricing error after 15 years: a fair decision
A sales manager with 15 years' service was fairly dismissed for gross negligence after failing to escalate a pricing error on two Land Rovers. The tribunal rejected his claims for unfair dismissal and unpaid wages.
1 min read · Last updated 18 May 2026
Case details
- #gross-negligence
- #pricing-error
- #failure-to-escalate
- #no-deposit-policy
- #15-year-service
- #bonus-withheld
Key facts
- The claimant was employed as a sales manager from 1 April 2005 until dismissal on 21 September 2020.
- In late 2019, the claimant ordered two left-hand drive vehicles without taking a deposit and quoted an incorrect price.
- The claimant did not inform management of the pricing error until March 2020, three months after discovering it.
- The respondent investigated and held a disciplinary hearing, finding gross negligence and dismissing the claimant summarily.
- The claimant's appeal was unsuccessful, and the tribunal found the dismissal fair.
Timeline
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Employment started
Claimant began working for the respondent as a sales manager.
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Ordered left-hand drive vehicles
Claimant ordered two left-hand drive Land Rovers for a customer without verifying the price or taking a deposit.
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Quoted incorrect price
Claimant sent quotes to the customer at a price similar to right-hand drive vehicles, which was lower than the actual cost.
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Received higher invoice
Land Rover invoiced the respondent at the higher price, but claimant did not inform management.
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Escalated to manager
Claimant emailed his line manager Paul Greenwood admitting the error and apologising.
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Investigation started
Respondent began investigating the pricing error.
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Claimant went on sick leave
Claimant commenced sick leave due to stress and anxiety.
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Returned from sick leave
Claimant returned to work and raised a grievance.
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Suspended
Claimant was suspended pending disciplinary outcome.
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Disciplinary hearing
Hearing took place with claimant accompanied by a colleague.
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Dismissed
Claimant was summarily dismissed for gross negligence.
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Appeal hearing
Appeal heard by Robert Hubbard, who upheld dismissal.
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Appeal outcome
Dismissal upheld.
The legal issue
Whether the employer acted reasonably in dismissing the sales manager for gross negligence after he made a pricing error and failed to escalate it for three months, and whether the employer made unlawful deductions from wages by not paying full sick pay and withholding a bonus.
The outcome
The tribunal dismissed all claims. It found that the respondent had a genuine belief in the claimant's gross negligence based on a reasonable investigation. The delay in escalating the error was a key factor, and dismissal was within the range of reasonable responses for a sales manager with significant experience.
Compensation: none awarded.
Lessons & takeaways
- Even long-serving employees can be fairly dismissed for gross negligence if the mistake is serious and they fail to escalate it promptly.
- Employers should ensure they carry out a reasonable investigation and follow a fair disciplinary process to defend against unfair dismissal claims.
- Non-contractual bonuses and sick pay policies may allow employers to withhold payments if the employee is under investigation or dismissed for gross misconduct.
A costly mistake
A sales manager with 15 years' service made a serious error when he ordered two left-hand drive Land Rovers without taking a deposit and quoted an incorrect price. The mistake cost his employer thousands of pounds. But what ultimately led to his dismissal was not the error itself, but his failure to escalate it for three months.
What the employer did right
The employer investigated the matter, held a disciplinary hearing, and gave the sales manager a chance to appeal. The tribunal found that the employer had reasonable grounds to believe the sales manager was grossly negligent. The delay in reporting the error was a critical factor: the sales manager discovered the mistake in December 2019 but did not inform management until March 2020. This was a breach of trust that justified dismissal.
What this means for similar claims
This case shows that even long-serving employees can be fairly dismissed for gross negligence if the conduct is serious and the employer follows a fair process. The tribunal also rejected claims for unpaid sick pay and a withheld bonus, noting that the employer's policies allowed it to withhold payments in these circumstances. Employees should be aware that failing to escalate errors promptly can have serious consequences, regardless of their length of service.
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