W Accountancy Limited - Chartered Acountants

Accountancy in Enfield and Woking

                 Enfield  0208 804 0478

Woking  01483 797901

 

Archives >

Autumn 2003 Newsletter

 

 

                    Contents
Taking the money
You can't take it with you
Free money
All change for earn-outs
It won't wash
Lease is more
A change on residence?
Take your pick
P@Ye
Taken at face value
A cosy arrangement
Look, no hands
Dividends of prudence
An eye on the workers
Rental returns
Silver spoon?
Gross misconduct?
Tax credits: trouble continues
Options and losses
This year, next year, NIC
Reasons to move
Cashing in your chips
No joy for the widowers
Time called on overtime
Travel sickness

 

Gross misconduct?

 

You have to be very careful before dismissing someone. Usually you have to give warnings and follow the proper procedures. You can only dismiss "summarily" - without a warning - for gross misconduct. The question is then whether the offence is bad enough to make that a reasonable course of action.

IllustrationIn a recent case, an employee admitted making personal phone calls, which were not permitted by the staff rulebook. The company policy was that such calls would be regarded as dishonest use of company resources, and would normally lead to dismissal. The investigation was brief, the disciplinary hearing immediate, and the employee was sacked.

The Employment Appeal Tribunal did not think that this was reasonable. Although private calls were forbidden, it was not made clear to the employee that this was a policy that would be enforced rigidly, or whether a blind eye was usually turned. The total cost of all the calls was less than £40. Although there were 111 calls in total, that was fewer than 3 a week, and the employee had been going through personal difficulties at home. Although dismissal might still have been a reasonable result, the EAT considered that the investigation should at least have taken these factors into account.

The lesson is the usual one: if you want to have rules of behaviour for your employees, you need to make sure that everyone knows what they are. And if you want to discipline someone for breaking the rules, you need to be able to show that what you did was fair.

The case is John Lewis plc v Coyne.

 
W Accountancy Limited is a member of the Institute of Chartered Accountants in England & Wales
Copyright W Accountancy Ltd 2006, All rights reserved.