Case Study: Resolving Employee Misconduct & Performance Issues

December 2, 2024

Client Challenge

Our client, a mid-sized company, was facing significant disruption due to a difficult employee who was undermining team morale and performance. Despite recognising the issues, the client struggled to pinpoint the root cause and wasn’t sure how to address the behaviour in line with company policies.

Upon reviewing the situation, we identified two key issues:

Unauthorised Use of Company Accounts: The employee had been purchasing personal items on the company’s accounts without permission, but no formal policy existed to prevent this behaviour.
Performance Issues: The employee was not performing to the expected standards, and it was unclear whether this was due to a lack of capability or a failure to meet basic conduct standards.

How We Helped

Our team at LBJ Consultants worked closely with the client to assess the situation and implement a structured solution:

Policy Development: We recommended that the client introduce a clear finance and expenses policy to define acceptable use of company accounts. This policy was incorporated into a revised Employee Handbook, which was then communicated to all staff to ensure clarity across the organisation.
Clarifying Expectations: We facilitated a meeting between the client and the employee to discuss the behaviour and set clear expectations moving forward. We also advised the client on the importance of documenting all communications and decisions made during the process.
Performance Management: After assessing whether the issue was related to capability or conduct, we guided the client through a structured performance management process, ensuring they had the necessary evidence and support mechanisms in place.
Disciplinary Action: With our assistance, the client followed a fair and compliant disciplinary process, which eventually led to the employee’s dismissal for gross misconduct. We also provided guidance on how to manage potential legal risks, including the possibility of an unfair dismissal claim.

Outcome

The client successfully navigated a complex employee issue, including:

Policy Implementation: A new finance/expenses policy was introduced, making financial conduct expectations clear across the company.
Employee Dismissal: The employee was dismissed for gross misconduct, and the dismissal was upheld in an Employment Tribunal after the employee raised a claim for unfair dismissal.
Risk Management: Throughout the process, the client was protected by our employee protection indemnity policy, covering all legal fees related to the tribunal claim.

Lessons Learned

This case highlights the importance of:

Clear Policies: Establishing clear, accessible policies is crucial for managing employee behaviour and performance.
Comprehensive Documentation: Employers must maintain thorough records of all performance management and disciplinary actions.
Legal Risk Mitigation: A robust risk management strategy, including legal protection, is essential when dealing with potential claims.

The client was not only satisfied with the outcome but also gained confidence in their HR processes, knowing they had the right policies and procedures in place to manage future issues.

“Reliable and responsive service. LBJ Consultants are all you need and more. Very responsive to calls, emails and requests. Billy takes the time to explain matters fully and then promptly follows with any documentation that you require. Would recommend to anyone 100%”.