A salesman accused of misusing a company credit card to buy cigarettes and lotto tickets and using his work email for dating websites has had an €18,000 award for unfair dismissal halved by the Labour Court.

Kashan Carpets, trading as Lynfrae Trading, appealed a previous Workplace Relations Commission decision that found Fergal McGrath had been unfairly dismissed. The company accepted that Mr McGrath’s conduct was questionable but argued the flawed dismissal process should not result in compensation.

Allegations and Employment Background

Mr McGrath began working for the company in November 2021 with a monthly sales target of €35,000. He consistently fell short, averaging about €20,000 per month. Issues came to light when a bookkeeper identified several inappropriate transactions on his company credit card, including multiple purchases at a local pub during weekends and holidays. Other concerns included cash withdrawals, cigarette and lotto purchases, and damage to a company van, which Mr McGrath struggled to explain.

Mr McGrath denied purchasing alcohol and claimed some transactions were legitimate work lunches. He argued he had received no proper guidance on using the card and would have refunded any mistaken charges. He also said the dating websites were free and that he had only noticed the van damage while driving.

Flawed Dismissal Procedure

The Labour Court emphasised that the dismissal process was the critical issue. The sacking occurred at a single meeting with only two people present, no notes were taken, and the decision was made by the same person who raised the allegations. Mr McGrath was given no prior notice of the meeting and no opportunity to appeal.

The court noted that while misconduct could justify dismissal, a process “entirely devoid of procedure” could not. This principle underpinned the decision to award compensation despite acknowledging his contribution to the dismissal.

Compensation and Outcome

The court initially calculated Mr McGrath’s losses at €40,000, reflecting a year of unemployment. It reduced this by 30 per cent for failure to mitigate and by 48 per cent for his role in the misconduct. The resulting award was €8,800.

The case highlights that even where employee misconduct is evident, following fair procedures is essential. Employers cannot disregard proper process without risking a finding of unfair dismissal, demonstrating the legal system’s focus on fairness above the nature of the alleged wrongdoing.