January 08 2025

Common Employer Mistakes When Terminating Employment for Gross Misconduct – and How to Avoid Them

In employment law practice, the desire to resolve situations quickly can often lead to more problems rather than effective solutions. One of the most frequent inquiries from employers concerns terminating an employee due to gross misconduct.

However, recurring errors in the termination process often result in disputes, which can be avoided with the right preventive measures.

1. Insufficient Evidence Collection

Many employers fail to thoroughly document the facts of the misconduct, leaving them with weak evidence to support claims of gross misconduct rather than a minor violation.

For example, if an employer accuses an employee of “disclosing confidential information to a competitor”, but there is no signed confidentiality agreement, no witness statements, or concrete proof, the case becomes legally fragile. Despite being a serious business risk, last-minute evidence is rarely effective in court.

✅ Best practice: Before proceeding with termination, compile a list of all possible evidence, review what has been collected, and ensure there is enough objective proof to support the decision.

2. Procedural Errors

Some employers overlook required procedural steps, assuming they are not critical. However, failing to follow proper procedures—such as not requesting a written explanation from the employee—can give grounds for legal challenges.

Even though courts may not automatically declare a dismissal unlawful if the employee indeed committed gross misconduct, missing procedural steps can complicate the investigation and weaken the employer’s case. Additionally, not giving the employee a chance to respond can lead to situations where key information emerges later, undermining the justification for dismissal.

✅ Best practice: Always follow the Labor Code’s procedural requirements and ensure each step is completed correctly and on time.

3. Lack of Objectivity & Proportionality

Sometimes, personal conflicts between an employer and an employee lead to disproportionate disciplinary actions.

For instance, if a long-term employee with no prior violations misses a meeting or takes an unapproved half-day off, immediately terminating their contract for gross misconduct might be seen as excessive. Courts or labor dispute commissions could rule this as disproportionate, especially if the offense was minor and there were no prior warnings.

✅ Best practice: Evaluate each situation objectively, separate personal feelings from professional decisions, and ask:

  • Did the employee’s actions cause actual harm to the company?
  • Were there alternative solutions (e.g., allowing the employee to make up missed hours instead of termination)?
Final Thoughts

Employers must strictly follow the steps outlined in Article 58 of the Labor Code:
✔ Assess the circumstances of the violation
✔ Hear the employee’s perspective
✔ Ensure termination is legally justified and proportionate

If an objective assessment is difficult, consulting an employment law specialist can help ensure compliance with legal procedures, evidentiary standards, and fairness. This not only protects the employer from potential lawsuits but also safeguards the company’s long-term reputation.

Subscribe to our newsletter!

Business trends and legal insights — all in one place.

Please wait...

Dėkojame! Sekmingai prisiregistravote

Let's talk