€10,000 Award for Unfair Dismissal Despite Misconduct Concerns: Why Fair Procedures Still Matter
A recent Workplace Relations Commission (WRC) decision highlights a critical principle for employers: even where misconduct is suspected — or genuinely believed — dismissal may still be unfair if proper procedures are not followed.
A Cork motor dealership was ordered to pay €10,000 in compensation to a former car salesman after his dismissal was found to be procedurally unfair, despite the WRC accepting the employer may have had legitimate concerns about his conduct.
The case serves as an important reminder that process, impartiality, and fairness are as important as the underlying allegation itself.
Background to the Case
The employee, a car salesman earning approximately €60,000 annually including commission, was dismissed following allegations that he privately purchased a customer’s trade-in vehicle outside company procedures.
Management became aware of the matter after a customer described being asked to park a trade-in vehicle “around the corner”, which was viewed as unusual and raised compliance concerns.
An internal review suggested:
Sales records may have been altered
A vehicle transaction may have involved a family member
Ownership details for another vehicle were incorrectly recorded
The employer concluded the matter amounted to gross misconduct involving breach of trust.
The Employee’s Position
The employee denied fraudulent intent and argued:
Buying trade-in vehicles was informally understood among staff to be a workplace perk
Allegations were presented with little notice
He was given approximately 15 minutes to choose between resignation or dismissal
The disciplinary process caused significant stress and lacked fairness
He brought a claim under the Unfair Dismissals Act.
What the WRC Found
Adjudicator Úna Glazier-Farmer accepted that the employer may reasonably have believed misconduct occurred.
However, the dismissal was still ruled unfair due to procedural failings.
Key issues identified included:
❌ Lack of Impartiality
The same director:
conducted the investigation,
assessed the evidence, and
decided the sanction.
This created an absence of independence in the disciplinary process.
❌ Inadequate Notice and Preparation Time
The employee received minimal notice of the disciplinary meeting and insufficient time to respond to allegations.
❌ Failure to Follow Procedures
The employer did not adhere to:
its own internal disciplinary policies, or
the statutory Code of Practice on Disciplinary Procedures.
Documentation supporting the dismissal decision was also lacking.
Why the Employer Still Had to Pay Compensation
The WRC emphasised an important legal distinction:
👉 An employer can be substantively justified in its concerns but still procedurally unfair in how dismissal is carried out.
Because fair procedures were not followed, the dismissal breached employment law.
Compensation was reduced to €10,000 because:
The employee contributed to the situation, and
He failed to adequately mitigate financial losses by seeking new employment promptly.
Key Lessons for Employers
This case reinforces several recurring risks seen in WRC decisions.
1️⃣ Fair Procedures Are Not Optional
Even strong evidence of misconduct does not remove the obligation to follow fair disciplinary steps.
2️⃣ Separate Roles in Disciplinary Processes
Where possible:
Investigator
Disciplinary decision-maker
Appeal officer
should be different individuals.
3️⃣ Avoid “Resign or Be Dismissed” Ultimatums
Short decision windows can undermine procedural fairness and expose employers to claims.
4️⃣ Informal Workplace Practices Create Legal Risk
If unofficial perks or practices exist but are undocumented, disputes may arise about expectations and rules.
Clear written policies prevent ambiguity.
The Bigger Message for Employers
Many unfair dismissal findings arise not because employers lacked justification — but because they rushed the process.
Employment law requires decisions to be:
✔ Fair
✔ Transparent
✔ Documented
✔ Impartial
A procedurally sound dismissal is far more defensible than a rushed one, even where misconduct appears obvious.
How Ormonde Solicitors Can Help
Ormonde Solicitors advises employers on:
Disciplinary procedures and investigations
HR policy drafting
Misconduct and gross misconduct cases
Workplace investigations
WRC defence and representation
Taking advice early can prevent costly disputes later.
📞 Contact us today for confidential guidance.
Disclaimer: This article is for general information purposes only and does not constitute legal advice.
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