How to Handle Gross Misconduct: A Step-by-Step Guide
An employee just violated company policy… now what? Handling gross misconduct is one of the most risky and challenging situations for a business leader.
It can lead to immediate termination of the employee, but it is critical to approach this cautiously and strategically to avoid disputes and prevent opening your business to legal risks
If you suspect an employee of gross misconduct, here’s a step-by-step guide to confidently navigate the situation.
What is Gross Misconduct?
Gross misconduct refers to severe violations of workplace policies that break trust between an employer and employee.
Common examples include:
Theft, fraud, or dishonesty
Physical violence or threats
Harassment, bullying, or discrimination
Breach of confidentiality or data protection laws
Gross negligence causing damage or harm
Alcohol or drug use impairing performance or safety
When serious misconduct like this occurs, immediate disciplinary action up to and potentially including termination is critical.
How to Manage Gross Misconduct...
If you witness–or are made aware of–possible misconduct, address the situation promptly and professionally by following these key steps:
1. Act quickly
Deal with misconduct promptly to minimize legal issues. Addressing misconduct quickly also prevents further issues with this or other employees and maintains a professional culture.
2. Involve HR
There’s no need to handle the situation alone. Involve HR immediately and they can guide the process to ensure fairness, compliance, and alignment with company policies.
3. Conduct a fair investigation
Every misconduct case requires an impartial investigation before disciplinary action is considered. If necessary, place the employee on leave (paid or unpaid) during the process.
If the situation involves an employee covered by a Collective Bargaining Agreement, collaborate with the Labor Relations department.
4. Maintain confidentiality
All details of the investigation should remain confidential to protect the integrity of the process and the privacy of those involved.
5. Decision-making
Decisions should be based on evidence, the seriousness of the misconduct, the affected employees' prior disciplinary issues, and previous handling of similar situations.
HR usually reports their findings to management and other key individuals, where options for resolution can then be discussed.
6. Follow your company’s discipline policy
Not all cases of misconduct result in termination. While serious offenses like theft or violence may lead to immediate dismissal, others may follow a structured disciplinary process:
Verbal warning
Written warning
Suspension
Termination (if necessary)
Make sure you’re following your company’s policy.
7. Communicate the outcome clearly
As soon as possible, affected employees should be informed of the outcome and any next steps or future expectations.
8. Right to appeal
Many companies’ Employee Discipline Policies allow employees to appeal disciplinary action, including terminations. Communicate this option to affected employees.
9. Document everything
Keep accurate, thorough, and confidential documentation of the entire process. This minimizes the company's legal risks in case of legal claims.
Don’t handle it alone: Get expert HR guidance
Handling gross misconduct incorrectly can result in legal complications, financial losses, and damage to your company’s reputation.
An HR professional can guide you through the process to help:
✅Ensure compliance with employment laws
✅Follow the correct disciplinary procedures
✅Make fair, evidence-based decisions that stand up to legal scrutiny
Need guidance on a misconduct case? Contact us today for a confidential consultation.
