exitagreementGross misconduct: meaning, examples and what happens next
Gross misconduct is not defined in any Act of Parliament. The working definition comes from the Acas Code of Practice on disciplinary and grievance procedures, and the specifics come from your employer’s own rules. What the law does fix is the process, and that is where most allegations are won or lost.
Gross misconduct against ordinary misconduct
The difference is not only in how serious the act is. It changes the notice, the likely outcome and, if a tribunal is involved later, the compensation.
| Misconduct | Gross misconduct | |
|---|---|---|
| Usual outcome for a first offence | A written warning (Code para.19) | Dismissal may be justified (Code para.23) |
| Notice | Normal notice if dismissed later | Dismissal without notice is possible (ERA s.86(6)) |
| Fair process still required | Yes | Yes — the Code says always (para.23) |
| Right to be accompanied at the hearing | Yes (ERelA 1999 s.10) | Yes (ERelA 1999 s.10) |
| Right of appeal | Yes (Code para.26) | Yes (Code para.26) |
| Effect on unfair dismissal compensation | — | Can be reduced for conduct (ERA ss.122(2), 123(6)) |
Sources: Acas Code of Practice on disciplinary and grievance procedures; Employment Rights Act 1996; Employment Relations Act 1999. Read 3 October 2026.
Key points
- The Code’s examples: theft or fraud, physical violence, gross negligence or serious insubordination. Your employer’s rules add the rest.
- A fair process is still required before a gross misconduct dismissal.
- You can bring a companion to the hearing, and you can appeal.
- A justified gross misconduct dismissal ends notice pay; an unjustified one does not.
- Settlement is possible, but threats to dismiss before any process has begun count as improper pressure.
What gross misconduct means
Some acts, termed gross misconduct, are so serious in themselves or have such serious consequences that they may call for dismissal without notice for a first offence. But a fair disciplinary process should always be followed, before dismissing for gross misconduct.Read the section on legislation.gov.uk
Two parts of that paragraph do the work. “May call for”: gross misconduct makes dismissal for a first offence possible, not automatic. And the second sentence: the process is not optional just because the allegation is serious.
Examples
Disciplinary rules should give examples of acts which the employer regards as acts of gross misconduct. These may vary according to the nature of the organisation and what it does, but might include things such as theft or fraud, physical violence, gross negligence or serious insubordination.Read the section on legislation.gov.uk
Those four are the Code’s own examples, and the list is deliberately open. Employers add their own, and the Code expects them to vary with what the organisation does; whether something counts in your case depends first on what your employer’s disciplinary rules say. Ask for a copy; the Code expects them to exist in writing.
Why the label matters
It decides notice. Section 86(6) of the Employment Rights Act 1996 preserves the right to end a contract without notice because of the other party’s conduct, so a justified gross misconduct dismissal ends your notice pay. What notice you would otherwise be owed.
The process your employer should follow
If it is decided that there is a disciplinary case to answer, the employee should be notified of this in writing. This notification should contain sufficient information about the alleged misconduct or poor performance and its possible consequences to enable the employee to prepare to answer the case at a disciplinary meeting. It would normally be appropriate to provide copies of any written evidence, which may include any witness statements, with the notification.Read the section on legislation.gov.uk
Suspension
In cases where a period of suspension with pay is considered necessary, this period should be as brief as possible, should be kept under review and it should be made clear that this suspension is not considered a disciplinary action.Read the section on legislation.gov.uk
The Code describes suspension with pay, and it is not a finding against you. If it drags on without review, that is worth raising in writing.
The hearing, and who can come
(1) This section applies where a worker— (a) is required or invited by his employer to attend a disciplinary or grievance hearing, and (b) reasonably requests to be accompanied at the hearing. (2A) Where this section applies, the employer must permit the worker to be accompanied at the hearing by one companion who— (a) is chosen by the worker; and (b) is within subsection (3).Read the section on legislation.gov.uk
The companion can be a fellow worker or a trade union representative or official. They can put your case, sum it up and confer with you; they cannot answer questions on your behalf. Use the notification letter and the evidence that comes with it to prepare: the Code says copies of written evidence, including witness statements, should normally be provided.
Appeal
Where an employee feels that disciplinary action taken against them is wrong or unjust they should appeal against the decision. Appeals should be heard without unreasonable delay and ideally at an agreed time and place. Employees should let employers know the grounds for their appeal in writing.Read the section on legislation.gov.uk
Facing a gross misconduct allegation?
Send your postcode and the date of the hearing. Firms advertising for your area can look at the allegation and the process before it is decided.
How to avoid dismissal for gross misconduct
Nobody can promise an outcome, but the Code and the statute together show where the leverage is.
Engage with the process
Attend, bring a companion, answer the allegation, and put any mitigation in writing: length of service, a clean record, the circumstances, anything that bears on whether dismissal is a reasonable response. The Code expects employers to consider an explanation before deciding.
Test whether the reason is really conduct, and whether dismissal is reasonable
Where the employer has fulfilled the requirements of subsection (1), the determination of the question whether the dismissal is fair or unfair (having regard to the reason shown by the employer)— (a) depends on whether in the circumstances (including the size and administrative resources of the employer’s undertaking) the employer acted reasonably or unreasonably in treating it as a sufficient reason for dismissing the employee, and (b) shall be determined in accordance with equity and the substantial merits of the case.Read the section on legislation.gov.uk
Fairness turns on whether dismissing was a reasonable response in the circumstances, including the employer’s size and resources. Inconsistency — others treated differently for the same thing — and gaps in the investigation are the points that move outcomes.
The cost to the employer of skipping steps
Under section 207A of the Trade Union and Labour Relations (Consolidation) Act 1992, a tribunal can increase an award by up to 25% where the employer unreasonably failed to follow the Code, and reduce it by up to 25% where the employee did — for example by not attending or not appealing. How an award is calculated.
If you are dismissed
Compensation for an unfair gross misconduct dismissal is worked out like any unfair dismissal, but the conduct itself can reduce it.
Where the tribunal finds that the dismissal was to any extent caused or contributed to by any action of the complainant, it shall reduce the amount of the compensatory award by such proportion as it considers just and equitable having regard to that finding.Read the section on legislation.gov.uk
Section 122(2) allows a similar reduction to the basic award. So an employer can lose on process and still pay less than the formula suggests if the conduct contributed to the dismissal. The time limit to claim is 6 months from the effective date of termination where that date is on or after 1 October 2026. Which limit applies.
Notice pay
If the conduct did not justify summary dismissal, the notice you were not given is owed separately, usually as a wrongful dismissal claim — a contract claim, separate from unfair dismissal and from its compensation cap.
Settling instead
A settlement agreement can end the matter before a hearing or after one, and often includes an agreed reference and an agreed reason for leaving. Either side can propose it. The Acas Code on settlement agreements treats as improper an employer saying, before any disciplinary process has begun, that you will be dismissed if you reject a settlement proposal; it allows an employer to state factually that a disciplinary process may start. What counts as improper in exit talks · how to negotiate.
Resigning before the hearing
Resigning ends the employment but not the facts: it can affect a reference, and if you later claim constructive dismissal you have to prove the employer’s conduct justified leaving. Resign last, not first.
Common questions
What counts as gross misconduct?
Acts so serious in themselves, or with such serious consequences, that they may call for dismissal without notice for a first offence. The Acas Code of Practice says employers' disciplinary rules should give examples, which might include theft or fraud, physical violence, gross negligence or serious insubordination. What counts in your workplace depends largely on your employer's own rules.
Can I be dismissed for gross misconduct without a hearing?
The Acas Code says a fair disciplinary process should always be followed before dismissing for gross misconduct. Dismissing without one makes an unfair dismissal finding more likely, and a tribunal can increase an award by up to 25% where the employer unreasonably failed to follow the Code.
Do I get notice pay if I am dismissed for gross misconduct?
Not if the dismissal is justified: section 86(6) of the Employment Rights Act 1996 preserves the right to end a contract without notice because of the other party's conduct. Whether the conduct justified it is something a tribunal can be asked to decide.
Can I bring someone to a gross misconduct hearing?
Yes. Section 10 of the Employment Relations Act 1999 gives a worker the right, on reasonable request, to be accompanied by a fellow worker or a trade union representative or official.
Is suspension a punishment?
It should not be. The Acas Code says suspension with pay should be as brief as possible, kept under review, and made clear not to be a disciplinary action.
Can I negotiate a settlement agreement instead of a gross misconduct hearing?
Either side can propose one. The Acas Code on settlement agreements counts as improper pressure an employer saying, before any disciplinary process has begun, that the employee will be dismissed if a settlement proposal is rejected. Stating factually that a disciplinary process may start is allowed.
How long do I have to claim unfair dismissal?
6 months from the effective date of termination where that date is on or after 1 October 2026; three months where it was earlier. Acas early conciliation comes first.
Sources cited on this page
- Acas Code of Practice on disciplinary and grievance procedures
- Employment Rights Act 1996, s.86 — notice, and termination for conduct
- Employment Rights Act 1996, s.98 — fairness
- Employment Relations Act 1999, s.10 — right to be accompanied
- Employment Rights Act 1996, s.123 — compensatory award
- Trade Union and Labour Relations (Consolidation) Act 1992, s.207A
- Acas Code of Practice on settlement agreements
Every figure above was read from the source it is attributed to on 19 September 2026. How we check this.
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