Question

I operate a retail business and in one of our stores large amounts of stock is going missing. I do not know who is responsible so can I dismiss all 5 people who work in the store?


Answer

Possibly. In certain circumstances, where an employer cannot conclude who is responsible, the law does allow an employer to dismiss all those employees it believes could be responsible. When considering dismissals of this kind, an Employment Tribunal would need to be satisfied of the following:-

  • An act has been committed, which if committed by an individual would justify dismissal.
  • You have conducted a reasonable, sufficiently thorough, investigation.
  • As a result of that investigation, you reasonably believed that more than one person could have committed the act of misconduct.
  • You have acted reasonably in identifying the group of employees who could have committed the act and that each member of the group was individually capable of so doing.
  • As between the members of the group the employer could not reasonably identify the individual perpetrator.

Dismissing groups of employees in these circumstances should be the exception rather than the norm. The more employees, the more compelling the case for dismissal needs to be.

If you would like to know more, please contact Tony Hyams-Parish, in confidence and without obligation by emailing Tony or by calling him on 08450 990045, or speak to your usual contact in the Employment Team.

This answer is provided for information only and does not constitute legal advice. Professional legal advice should be obtained before taking or refraining from taking any action as a result of the contents of this article.

15 November 2011

Read some of our previous Employers Questions here.