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In light of the publicity and anger over MPs' expenses this issue has now been placed firmly under the spotlight. Such things as inflating expense claims by adding a few extra miles, or even taking property such as toilet rolls, bin bags and even tools are seen by some as a perk of the job. Although these seem trivial in light of the extortionate claims that MP’s have been making deliberately inflating expenses claims or taking property belonging to employers constitutes theft, whilst over claiming expenses by way of a genuine oversight is seen a performance issue.

John Merry, Partner and head of the employment team explains, “employees in the first year of their employment do not have unfair dismissal protection and are therefore particularly vulnerable to dismissal in the event of so much of a suspicion regarding their expenses or the taking of property, no matter the extent of the evidence or of the error or wrongdoing – although employers need to prove that it is more likely than not that there has been dishonesty or gross negligence if it is to lawfully deprive the employee of notice of dismissal or notice pay.“

He then adds, “after year one, the law of unfair dismissal applies. However, employers need only demonstrate - after the conducting of a reasonable investigation and procedure - a reasonable belief in dishonesty or gross negligence in order for a dismissal to be fair. In other words, subject to a proper procedure being followed - consistent with the ACAS code of practice on disciplinary and grievance procedures, and otherwise the employer's own procedures - a dismissal will be fair unless it can be said that no reasonable employer would have dismissed in the circumstances. Where there is a reasonable belief in dishonesty, it will usually be difficult for an employment tribunal to criticise a decision to dismiss. Where an employer believes the employee's made a genuine mistake, other than in extreme cases, a mere warning will usually be appropriate.”