Sales assistant dismissed for playing scratch cards without paying: gross misconduct upheld but wage deductions unlawful
A sales assistant caught on CCTV playing scratch cards and lottery tickets during shifts without paying was fairly dismissed for gross misconduct. The tribunal upheld the dismissal but ordered the employer to pay £608.55 for unauthorised wage deductions and unpaid holiday pay.
1 min read · Last updated 18 May 2026
Case details
- #gambling-at-work
- #theft
- #scratch-cards
- #gross-misconduct
- #summary-dismissal
- #holiday-pay
- #unauthorised-deduction
Key facts
- The claimant was employed as a sales assistant from 2 January 2020 until 27 January 2022.
- The claimant played scratch cards and lottery tickets during his shifts without paying for them, and sometimes processed winnings through the till.
- The respondent investigated using CCTV and held a meeting on 27 January 2022 where the claimant admitted wrongdoing.
- The claimant was dismissed summarily on 27 January 2022 for gross misconduct (theft and gambling).
- The respondent deducted the claimant's entire January 2022 wages (£534.60) without prior written notice.
- The claimant had not taken any annual leave and was not paid in lieu of accrued holiday pay.
Timeline
-
Employment commenced
The claimant started work as a sales assistant at Whinneymoore service station.
-
Investigation began
Manager Sher Dil Khan was asked to carry out a stock take and found discrepancies in scratch card sales during the claimant's shifts.
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Holiday year started
The holiday year began on 1 January; the claimant accrued 8.3 hours of holiday by termination.
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Disciplinary meeting and dismissal
The claimant was called to a meeting, shown CCTV evidence, admitted wrongdoing, and was summarily dismissed for gross misconduct.
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Wage deduction
The respondent deducted the claimant's full monthly wage of £534.60 without prior written notice.
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Termination letter sent
The respondent sent a letter confirming dismissal for theft and gambling, and stated intention to recover £1,645 in losses.
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Claimant challenged dismissal
The claimant sent a text message disputing the dismissal and requesting a breakdown of the alleged losses.
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Tribunal hearing
The case was heard at Leeds Employment Tribunal before Employment Judge Jaleel.
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Judgment issued
The tribunal dismissed the unfair dismissal and notice pay claims but upheld claims for holiday pay and unauthorised deduction from wages.
The legal issue
The tribunal had to decide whether the claimant was unfairly dismissed for conduct (gross misconduct), whether the employer was entitled to dismiss without notice, and whether the employer made unauthorised deductions from wages by withholding the claimant's January salary and failing to pay holiday pay.
The outcome
The tribunal dismissed the unfair dismissal claim and the claim for notice pay, finding that the employer had reasonable grounds to believe the claimant committed gross misconduct by playing scratch cards and lottery tickets without paying during his shifts, and that dismissal was within the range of reasonable responses.
However, the tribunal upheld the claims for unauthorised deduction from wages and holiday pay. The employer deducted the claimant's entire January 2022 wages (£534.60) without prior written notice, which was unlawful. The claimant also had not taken any annual leave and was entitled to pay in lieu of accrued holiday pay.
Compensation:
- Holiday pay: £73.95
- Unauthorised deduction from wages (January salary): £534.60
- Total: £608.55
Lessons & takeaways
- Employers must not deduct wages without prior written notice or contractual authority, even if the employee has admitted wrongdoing.
- Employees who admit to gross misconduct can still be fairly dismissed, but the employer must still follow a reasonable procedure.
- Holiday pay accrues during employment and must be paid on termination, regardless of the reason for dismissal.
- Self-represented parties should prepare remedy evidence in advance, as the tribunal may deal with liability and remedy separately.
This case shows how an employer can fairly dismiss for gross misconduct even when the employee admits the wrongdoing, but still fall foul of basic wage protection laws. The sales assistant was caught on CCTV playing scratch cards and lottery tickets without paying during his shifts, and sometimes processing winnings through the till. When confronted, he admitted the behaviour and was summarily dismissed for theft and gambling.
What the employer got right and wrong
The tribunal accepted that the employer had reasonable grounds to believe the claimant committed gross misconduct and that dismissal was within the range of reasonable responses. However, the employer then deducted the claimant's entire January 2022 wages (£534.60) without giving prior written notice as required by the Employment Rights Act 1996. The employer also failed to pay the claimant for 8.3 hours of accrued but untaken holiday leave.
Why the result matters
This case is a reminder that even when an employee has clearly breached trust, employers cannot simply withhold wages as a form of punishment. Unauthorised deductions and failure to pay holiday pay on termination are common pitfalls. For employees, the case illustrates that admitting misconduct does not automatically make a dismissal unfair, but it also does not waive your right to be paid for work done and leave accrued.
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