How to handle gross misconduct in the workplace

From April 2024 to March 2025, the employment tribunal received 42,000 single claims, an increase of 23% from the previous year. And data reported by the Ministry of Justice suggests that there has been a rise in dismissals as a result. With employment relationships becoming increasingly complex, HR professionals are facing more pressure to navigate these challenging situations with precision and care.

When an employee’s actions cross the line, understanding the vital distinction between standard misconduct and gross misconduct becomes essential. Getting this right ensures that your organisation respects legal obligations whilst maintaining fairness for all team members involved in the process.

Missteps during a dismissal can lead to costly unfair dismissal claims and lasting damage to your company’s reputation. Ignoring the correct protocols doesn’t just put your business at legal risk; it undermines the trust and culture you have worked hard to build.

In this guide, we break down what constitutes gross misconduct and how to manage the summary dismissal process both legally and compassionately. If you are looking to streamline your disciplinary procedures, BambooHR’s performance management software offers the tools and insights you need to keep your workforce supported.

What does gross misconduct mean?

Gross misconduct is any unethical and unprofessional behaviour an employee engages in. Not only can gross misconduct harm an employee’s relationship with their employer, but it can also warrant instant dismissal from their job, even if the behaviour is their first offence. Due to the severity of this behaviour, employment may be terminated after investigation.

Gross misconduct is often defined as being a serious breach of contract, rather than an oversight or dispute. This type of behaviour breaks the terms set out in an employee contract, but, as an employer, you still need to conduct a fair investigation before taking it any further or suggesting dismissal.

What’s gross misconduct at work?

Though individual businesses may vary somewhat in defining the term, gross misconduct at work generally involves serious actions that threaten the safety, health and reputation of their colleagues and the organisation.

Employers should discuss what constitutes gross misconduct and its repercussions in their employee handbook or employment contracts. This protects companies in the event they do have to let go of an employee.

Its inclusion in a handbook or contract indicates that both the employer and employee have agreed to the gross misconduct terms. This means that the organisation has the right to dismiss a worker if they breach those terms.

Outlining gross misconduct in writing also helps employees understand what is expected of them and what would cause immediate termination of their employment.

What are examples of gross misconduct?

Gross misconduct at work involves several actions that can include, but are not limited to, the following behaviours:

• Illegal drug or alcohol use: This could take place on the premises or in a way that impacts the employee’s performance when they are performing their role.
• Theft or fraud: Stealing from the workplace, falsifying documents, or committing fraud.
• Vandalisation of company property: This includes equipment, vehicles, or other business assets.
• Sexual harassment/assault: This covers everything from comments to inappropriate behaviour towards other employees.
• Physical violence: For example, fighting and/or making violent threats
• Repeated lateness or absences: If an employee continues to arrive late after warnings or not turn up for work without a valid reason.
• Gross negligence: When there's a serious lack of care in their duties or towards other people.

While these are general examples, your organisation might also have its own policy or conduct rules, along with other more business-specific examples of gross misconduct. Always refer to company policies before handling any cases of gross misconduct.

What is the difference between misconduct and gross misconduct?

While gross misconduct is serious enough to fire an employee, misconduct—though still consequential–does not often result in such severe consequences. Employees may well face consequences for misconduct, but they are likely to remain employed, especially after the first offence.

Misconduct can include:

• Being late to work—including being delayed or slow to act
• Submitting lacklustre or incomplete work
• Being rude toward colleagues and clients
• Using company equipment for personal use without permission from management.

Misconduct typically involves a warning and a verbal or written reprimand from the employer. Repeated cases of these behaviours can be considered gross misconduct and result in termination.

There’s also serious misconduct, which includes actions that cause significant harm to the business and fall somewhere between misconduct and gross misconduct. This may include financial errors or reputational damage, for example.

In cases of serious misconduct, an employer may issue a ‘first and final’ written warning, explaining that failure to improve will result in dismissal.

As the lines between misconduct, serious misconduct, and gross misconduct can often be blurry, it’s best to discuss them with your HR team and clearly differentiate among them in your employee handbook.

Having a well-defined protocol can also be useful for categorising certain behaviours when an employee is involved in a unique circumstance not explicitly listed in the handbook.

Please note, though, if an employee’s behaviour is not listed in your policy, you may not be able to prove their actions as gross misconduct and dispute their unemployment benefits.

How do you prove gross misconduct?

If management hasn’t directly witnessed an employee committing gross misconduct, they may use witness statements to prove the individual has carried out such behaviour. They can then use the statements as a reason for the employee’s dismissal.

Whatever the case, the company should launch a full investigation. This involves:

• Notifying the employee of the allegation, including HR and line managers. A written record should be kept of all communications.
• Reading your employee handbook or employment contract to see whether someone’s behaviour is considered misconduct, serious misconduct, or gross misconduct.
• Speaking with witnesses to learn more details about what happened. You may also need to review CCTV or check digital records.
• Looking back at employee documentation, if available. Have there been events or behaviours in the past that may have contributed to the possible gross misconduct? Or maybe this has happened before, which might increase the chance that the employee’s behaviour is classified as gross misconduct.
• Providing the employee with the opportunity to explain their side of the story in a disciplinary hearing. Once the hearing concludes, based on facts, you need to decide whether dismissal is the right option.

Gross misconduct termination

So, does gross misconduct always lead to dismissal? Well, based on the investigation, you and your team can decide whether to fire the employee for gross misconduct or not.

Employers can dismiss employees at any time by issuing a written termination letter. This should be a brief statement that explains why they are being terminated and any entitlements or payments owed to them. The employee should also be offered the right to appeal.

What are the laws around gross misconduct?

Understanding the laws around gross misconduct means you can make fair decisions when complaints arise in the workplace. It will also protect your organisation from unfair dismissal claims. In the UK, here are some of the key laws to be aware of and refer to:

• Employment Rights Act 1996: Sets out the minimum standards for fair dismissal
• Equality Act 2010: Protects employees from discrimination during disciplinary processes
• Data Protection Act 2018: How investigation data is stored and used

It’s important to remember that even if employees are facing allegations of gross misconduct, they are still entitled to a fair and lawful disciplinary process. This includes the right to respond and to appeal the decision if they wish.

If they believe they have been dismissed unfairly, they may have grounds to bring a claim to an employment tribunal.

What does gross misconduct mean for unemployment benefits?

If someone is dismissed for gross misconduct in the UK, they are still entitled to unemployment benefits, such as Universal Credit. They might also be able to get a higher amount of benefits they already receive, including:

• Universal Credit
• Council Tax Reduction
• Housing Benefit
• Jobseeker’s Allowance

Citizens Advice is a good source of information on the benefits available.

However, if someone is dismissed for misconduct, their benefits may be delayed for at least 13 weeks, known as a benefits sanction. The rules around benefits sanctions are complex, so, again, it’s a good idea to encourage employees to speak to Citizens Advice.

Develop your workforce with BambooHR

Hopefully, you’re now familiar with the meaning of misconduct and gross misconduct and fully equipped to handle a fair and lawful disciplinary process. In doing so, you can protect your organisation from high-cost disputes.

When it comes to performance management software, BambooHR is on hand to support your HR employees in handling misconduct and other workplace issues in the UK.

Our tools make employee assessments, feedback, and goal-setting easy and insightful for everyone.