Claimant won £68,048 awarded Employment Tribunal · 15 July 2022

Dismissed without any investigation: a conduct case that failed at the first hurdle

A director with 19 years' service was summarily dismissed for gross misconduct after withdrawing company funds, but the employer carried out no investigation or disciplinary hearing. The tribunal awarded £68,048.

1 min read · Last updated 18 May 2026

Case details

Key facts

  • The claimant was employed from 12 September 2002 until 15 December 2021.
  • The claimant's gross annual salary was £52,000.
  • The respondent dismissed the claimant summarily for gross misconduct after he withdrew £2,939.89 from the company bank account.
  • The respondent failed to carry out any investigation or hold a disciplinary meeting before dismissing the claimant.
  • The claimant was not paid wages from 19 November 2021 to 15 December 2021.
  • The claimant had 10 days of accrued but untaken annual leave.

Timeline

  1. Company incorporated

    The claimant became an original director and shareholder of the respondent.

  2. Share sale

    The claimant sold his entire shareholding in the respondent to Mr Overend.

  3. First meeting

    Mr Overend raised concerns about missing funds and asked the claimant to take paid leave.

  4. Last wage payment

    The claimant received his last wage payment.

  5. Second meeting

    Meeting at Bowburn services; redundancy discussed but no agreement reached.

  6. Notice letter

    Respondent wrote giving notice of termination on 17 December 2021, but later superseded.

  7. Dismissal letter

    Respondent wrote dismissing the claimant summarily for gross misconduct.

  8. Effective date of termination

    Claimant received the dismissal letter, ending his employment.

  9. Early conciliation started

    Claimant commenced early conciliation with ACAS.

  10. ET1 presented

    Claimant presented his claim to the Employment Tribunal.

The outcome

The tribunal upheld the claimant's unfair dismissal claim and found that the respondent had made unauthorised deductions from wages and breached the contract of employment.

Key findings:

  • The respondent dismissed the claimant summarily for gross misconduct without any investigation or disciplinary process.
  • The respondent failed to pay wages for the period 19 November to 15 December 2021, failed to pay income protection premiums, and failed to pay for accrued but untaken annual leave.
  • The respondent was also in breach of contract by dismissing without notice.

Compensation:

  • Basic award: £16,048
  • Compensatory award: £52,000
  • Total: £68,048

Lessons & takeaways

  • An employer must carry out a reasonable investigation before dismissing for misconduct, even if the alleged misconduct appears serious.
  • Summary dismissal without any disciplinary process is almost certain to be unfair, regardless of the employee's conduct.
  • Failing to pay wages, holiday pay, or contractual benefits can lead to separate claims for unauthorised deductions and breach of contract.
  • Long-serving employees are entitled to a fair process; a failure to follow basic procedures will likely result in significant compensation.

A dismissal without any process

This case is a stark example of what happens when an employer jumps straight to summary dismissal without any form of investigation or disciplinary hearing. The claimant, a director and shareholder of Lowther Decorators Limited for 19 years, was dismissed after withdrawing £2,939.89 from the company bank account. The employer treated this as gross misconduct and dismissed him by letter, without ever asking for his side of the story.

What the employer did wrong

The tribunal found that the respondent failed to carry out any investigation into the circumstances of the withdrawal. There was no disciplinary meeting, no opportunity for the claimant to explain, and no consideration of alternatives to dismissal. The employer's decision was based solely on the fact that the money had been taken, without any attempt to understand the context or the claimant's intentions. This fell far short of the standard required for a fair dismissal.

The wider implications

This case reinforces the fundamental principle that a fair process is not optional. Even where an employer believes it has strong grounds for dismissal, it must still follow a proper procedure. The absence of any investigation or hearing made the dismissal automatically unfair. The tribunal also upheld claims for unauthorised deductions from wages, including unpaid salary, income protection premiums, and holiday pay, as well as breach of contract for dismissal without notice. The total award of £68,048 reflects the seriousness of the employer's failures and the claimant's long service.

For employees in similar situations, this case shows that a complete lack of process can be a powerful basis for an unfair dismissal claim, regardless of the alleged misconduct. Employers should note that even in cases of suspected gross misconduct, a fair investigation and disciplinary hearing are essential.

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