Chand v EE Ltd – Can a dismissal be fair if the employer’s original reason was unsupported by the evidence.
Can a dismissal be fair if the employer’s original reason was unsupported by the evidence, but other misconduct might have justified dismissal?
In Chand v EE Ltd [2026] it was held that this is not the case!
What happened?
- The Claimant, Chand, had worked for EE for 16 years.
- She was investigated over four incidents involving customer accounts, which EE treated collectively as suspected fraud.
- These instances included incorrect application of the staff discount, inappropriate use of customer account details, transactions being processed improperly and misuse of company systems.
- Although the Claimant accepted that mistakes had occurred, she denied acting dishonestly.
- EE dismissed her for gross misconduct on the basis of fraud. So she brought a claim.
- The Employment Tribunal found there were no reasonable grounds to believe the incidents amounted to fraud.
- However, it concluded that one incident constituted a serious breach of company policy and upheld the dismissal as fair on that alternative basis.
- The Claimant appealed this decision and the EAT found that her dismissal was unfair!
- It held that the Tribunal had made a mistake by relying on a policy breach when EE had dismissed Ms Chand for fraud.
- The fairness of a dismissal must be assessed by reference to the reason the employer actually relied upon at the time.
- An employer cannot retrospectively justify a dismissal by relying on an alternative reason that was not the basis of its decision.
- While an alternative reason may be relevant when assessing compensation, it does not automatically make the dismissal fair.
Why is this important?
This case highlights the importance of ensuring dismissal decisions are evidence-based and consistent with the reason relied upon. Employers should avoid overstatement and ensure their conclusions reflect the findings of the disciplinary process. Reason means facts or beliefs held at the time. No retro-fitting allowed.
What can HR learn from this?
- Ensure the reason for dismissal accurately reflects the evidence.
- Do not label conduct as fraud or dishonesty without sufficient supporting evidence.
- If findings change, reconsider the allegations and give the employee a fair opportunity to respond.
- Ensure the final decision and the reasoning behind it is clearly recorded.
Need help?
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