Mukhtiar Singh, Counsel For the v Respondent — 2021

Mrs A Adaka was employed by HM Revenue & Customs from 20 May 2002 as a VAT Assurance Officer and was suspended in March 2015 while an internal investigation was carried out into allegations concerning tax offences, tax credit fraud and money laundering. A separate disability discrimination claim had previously been withdrawn. Following an investigation, a disciplinary hearing, and an appeal, the tribunal considered only the unfair dismissal claim.

The tribunal applied sections 94, 98(2)(b) and 98(4) of the Employment Rights Act 1996 and the range of reasonable responses approach, citing Sainsbury's Supermarkets Ltd v Hitt. It found that the respondent had reasonable grounds to believe allegations 1 and 2 were proved: failure to declare rental income from jointly owned buy-to-let properties, and claiming tax credits as a single person when the claimant was found not to be single for tax credit purposes. The tribunal also accepted that the respondent could rely on the materials before it at the time, including the tax credit evidence showing an overpayment of £8,740.26.

By contrast, the tribunal was not satisfied that allegation 3 was proved on a reasonable investigation. That allegation concerned the sale proceeds for Flat 24 Crawford Point, where the claimant said the relevant figure was £130,000 and the balance of £18,000 was compensation; the tribunal held that the respondent had not properly investigated whether the £18,000 should have been treated separately. The tribunal also rejected the claimant's procedural criticisms, including the suggestion that HR had been the real decision-maker and that the decision manager was disqualified by a social connection.

Even though allegation 3 failed, the tribunal held that allegations 1 and 2 were sufficient to justify dismissal for gross misconduct under the respondent's policies and that dismissal was within the range of reasonable responses. The appeal was unsuccessful, and the unfair dismissal claim was dismissed.