The claimant, who worked for JATA Construction, paid the money back to his employer four days after withdrawing it; but two days after repaying the money, the employer dismissed the worker for gross misconduct.
The judge noted that, in its letter of dismissal to the employee, leaders of JATA Construction implied that the employee had been dishonest and had stolen from the firm. “I do not accept that this was [JATA Construction’s] honestly held belief... [as they] did not report the matter as theft [because] they knew the money had been repaid,” the employment judge said.
On 31 August 2023, the claimant took £100 from a 'tap and cap' card he had been given for his expenses, to purchase some pottery. The following day, he phoned the office to tell them he had taken the money and wished to repay it.
After asking the best way to do this, on 4 September, he left £100 cash in the office. However, four days later, after having a meeting with the company director, the claimant was dismissed for gross misconduct and was given a letter to confirm this.
The claimant was awarded £26,297.24 in total, including an amount for loss of earnings. Though the decision was taken in November 2024, the document containing the reasons behind the decision was published on 17 June 2025.
The lack of a thorough and robust investigation led to this employer losing the case, according to Fiona Hamor, employment partner at Pannone. She told HR magazine: “It was evident that the investigation was fundamentally flawed.
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“Significantly, the employer failed to take account of key factors, including that the employee had repaid the money promptly, and the business had previously bought him tools and set the cost off against sums owed to him.
“This case highlights the importance for employers of carrying out a thorough investigation, assessing each case on its facts, and not jumping to the conclusion of dismissal simply because the company’s policy categorises a particular offence as gross misconduct.”
Responding to an HR magazine news story about a company that allowed employees to claim lavish expenses, Lauren Branston, CEO of the Institute of Business Ethics, highlighted the importance of ensuring that all staff are trained on how to make ethical business expense claims.
“Ensure that all employees – from new starters to senior leadership – receive training on what counts as acceptable business practice in line with the company’s expenses policy, and why integrity in this area is so important,” she advised. “This should align with the approach taken to gifts and hospitality.”
