Duty to Investigate Suspicions of Dishonesty in Group Companies

An employer who alleges dishonesty against an employee must take steps to investigate and, following consultation with the employee, must have reasonable grounds to believe that dishonesty has taken place for a dismissal to be fair. Where such a process took place in one group company but then the employee was dismissed by another group company for whom he also worked, the EAT decided both dismissals were fair because one group company is entitled to rely on the investigation process of another.

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