23-year production manager dismissed over scrap wood sales: conduct dismissal upheld
A production manager with 23 years' service was fairly dismissed for gross misconduct after an investigation into missing scrap wood sale proceeds, the tribunal ruled, despite errors in the employer's spreadsheet evidence.
1 min read · Last updated 19 May 2026
Case details
- #theft-allegation
- #scrap-wood-sales
- #cctv-evidence
- #flawed-spreadsheet
- #appeal-upheld-in-part
- #gross-misconduct
Key facts
- The claimant was dismissed on 16 December 2022 for gross misconduct relating to theft of company monies from scrap wood sales.
- The respondent's investigation included CCTV footage, witness interviews, and a spreadsheet estimating a shortfall of £805.
- The spreadsheet contained errors, acknowledged during the disciplinary hearing, but the respondent believed a shortfall remained.
- The claimant had received a first written warning in April 2022 and a final written warning in July 2022.
- The appeal hearing upheld allegations 1 and 2 but not allegation 3, and the dismissal was confirmed.
Timeline
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Claimant started employment
The claimant began working for the respondent as a Production Manager.
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First written warning
The claimant received a first written warning for inappropriate comments, valid for 6 months.
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Investigation into health and safety breach
The claimant was investigated for storing flammable materials at an employee's home.
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Final written warning
The claimant received a final written warning for health and safety breaches, expiring 26 January 2023.
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Covert monitoring began
Paul Smith raised concerns about scrap wood sales, leading to covert CCTV monitoring.
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Suspension
The claimant was suspended pending investigation for potential gross misconduct.
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Investigation report
An investigation report recommended proceeding to a disciplinary hearing on three allegations of theft.
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Disciplinary hearing and dismissal
The claimant attended a disciplinary hearing; later that day, he was dismissed without notice for gross misconduct.
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Appeal submitted
The claimant appealed the dismissal, disputing the evidence and alleging procedural flaws.
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Appeal hearing
An appeal hearing was held with Peter Linton, who corrected spreadsheet errors and obtained a forensic image report.
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Appeal outcome
Peter Linton upheld allegations 1 and 2, but not allegation 3, and confirmed the dismissal.
The legal issue
The tribunal had to decide whether the employer had a genuine belief in the employee's misconduct, carried out a reasonable investigation, and acted within the range of reasonable responses in dismissing for gross misconduct.
The outcome
The tribunal dismissed the unfair dismissal claim, finding the dismissal fair. The employer had a genuine belief in the misconduct based on CCTV footage, witness interviews, and a spreadsheet estimating a shortfall of £805. Although the spreadsheet contained errors, the employer acknowledged them during the disciplinary hearing and still believed a shortfall remained. The appeal partially upheld the allegations. The wrongful dismissal claim also failed as gross misconduct justified dismissal without notice.
Lessons & takeaways
- Employers can rely on flawed evidence if they acknowledge the errors and still have a reasonable belief in misconduct.
- A long-serving employee is not automatically protected if the employer follows a reasonable investigation and disciplinary process.
- Appeals that partially uphold allegations can still support a fair dismissal if the remaining allegations justify the outcome.
- Covert CCTV monitoring may be acceptable if there are genuine concerns about theft and the employer acts reasonably.
When flawed evidence still supports a fair dismissal
This case shows that an employer's investigation does not need to be perfect to be reasonable. The production manager, who had worked for Northern Joinery Limited for 23 years, was dismissed after an investigation into missing proceeds from scrap wood sales. The employer's spreadsheet estimating a shortfall of £805 contained errors, which were acknowledged during the disciplinary hearing. However, the employer still had a genuine belief that a shortfall existed, supported by CCTV footage and witness interviews.
What the employer did right
The employer carried out a thorough investigation, including covert CCTV monitoring after concerns were raised by a director. The disciplinary hearing was fair, and the employee had the opportunity to respond to the allegations. The appeal hearing corrected the spreadsheet errors and partially upheld the allegations, but still concluded that the dismissal was appropriate. The tribunal emphasised that the employer acted within the range of reasonable responses, even though the evidence was not perfect.
What this means for similar claims
Employees facing dismissal for misconduct should not assume that flaws in the employer's evidence will automatically make the dismissal unfair. The key question is whether the employer had a genuine belief in the misconduct based on reasonable grounds, after a reasonable investigation. Even with 23 years of service, the employee was not protected because the employer followed a fair process. For employers, this case reinforces the importance of conducting a reasonable investigation and allowing an appeal, but it also shows that minor errors in evidence do not necessarily undermine a fair dismissal.
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