Unfairly Dismissed Employee Awarded £14,000 by ET

At-a-glance

• An employee was summarily dismissed on 31 July 2023 for alleged personal use of a work computer.
• The Employment Tribunal (ET) found the dismissal was unfair: there was no disciplinary hearing, and alleged performance “diary” notes were created after the event.
• The ET held the true reason for dismissal was to prevent the employee reaching the continuity of service needed to bring an unfair dismissal claim.
• Awards: £2,064 basic award + £12,056 compensatory award = £14,120, including a 20% uplift for failure to follow the Acas Code.
• Case: Lanuszka v Accountancy MK Services Limited.

What happened?

The claimant was dismissed without notice on 31 July 2023 for supposed personal use of her work computer. At a preliminary hearing, the ET found her employment actually started on 30 October 2017, not in September 2021 as the company’s director believed when the business structure changed. That finding allowed the claimant to add an unfair dismissal claim (original claims for wrongful dismissal and holiday pay were withdrawn).

Why was the dismissal unfair?

The ET was highly critical of the employer’s evidence:

• Manufactured records: The “diary” listing performance issues was not contemporaneous; it appeared to have been created post-fact to bolster the defence.
• No procedure: Although the diary suggested a disciplinary hearing occurred, the dismissal letter did not mention one, and the Tribunal found no hearing actually took place.
• Inconsistent standards: There was no prohibition on limited personal computer use, and the director had also used their computer for personal matters.
• True reason for dismissal: The ET concluded the director’s aim was to dismiss before continuity of service accrued for unfair dismissal rights, not because of misconduct.
• Unreasonable response: There were no reasonable grounds for believing the claimant guilty of misconduct and no reasonable investigation. Dismissal fell outside the band of reasonable responses.

The outcome

Because no fair procedure was followed, the ET applied a 20% uplift under the Acas Code of Practice and ordered the employer to pay:

• Basic award: £2,064
• Compensatory award: £12,056
  Total: £14,120

Why this case matters (for employers and employees)

Key lessons for employers

• Process first, then decision: Always follow a fair disciplinary procedure, investigate, invite, hear, decide, appeal and document it properly.
• Contemporaneous evidence counts: Tribunals scrutinise documents. Back-filled notes can damage credibility.
• Know continuity rules: TUPE/insourcing/“newco” moves can preserve continuity. Don’t assume a corporate restructure resets service length.
• Apply policies consistently: If limited personal computer use is tolerated, don’t treat it as gross misconduct without clear, communicated rules.

For employees

• Continuity of service can be preserved despite business transfers or restructures.
• If you’re dismissed without a fair process, you may have unfair dismissal and Acas uplift arguments. Keep copies of policies, emails and letters.

Frequently Asked Questions (FAQs)

What is “continuity of service” and why is it important?
It’s your unbroken period of employment. Most employees need two years’ service to claim ordinary unfair dismissal. Continuity can carry over when businesses restructure or transfer, so check the specifics of your move.

Do employers have to hold a disciplinary hearing before dismissing?
For alleged misconduct, yes, a fair process generally requires an investigation, a hearing, and a right of appeal, following the Acas Code. Skipping steps risks unfair dismissal and a potential uplift of up to 25%.

Can an employee be fairly dismissed for personal use of work equipment?
Potentially, but it depends on clear policies, proportionality, consistency, and a fair process. Occasional, tolerated personal use, especially if managers do the same, will rarely justify summary dismissal.

What kind of evidence do Tribunals trust?
Contemporaneous records (emails, meeting notes made at the time), policy documents shown to the employee, and credible witness evidence. Documents created after a dispute starts will be viewed with caution.

What is the Acas uplift?
If an employer unreasonably fails to follow the Acas Code, Tribunals can increase compensation by up to 25%. In this case, the uplift applied was 20%.

How we can help

Whether you are an employer seeking to reduce risk or an employee considering a claim, our Employment Law team can help with:

• Disciplinary and dismissal processes
• Policy drafting and training
• Unfair dismissal claims and settlements
• Business transfers and continuity of service issues