Ensuring your expenses are correct when trying to claim them is paramount for the safety of your job. If you submit false expense reports, this can be classed as fraud and can see you sacked on the spot. 

A recent Employment Tribunal case saw an analyst for major global financial organisation Citibank dismissed for reasons of gross misconduct. The employee, Mr Fekete, had worked for Citibank from 2015 to 2022, when a false expenses claim made by him was investigated internally and ultimately led to his dismissal without notice.

The facts in short

Mr Fekete was on a business trip in Amsterdam in July 2022. He had told another colleague that his partner would be joining him.

As per Citibank’s expenses policy, employees were entitled to be reimbursed for up to 100€ a day for expenses incurred by themselves, such as food, drinks and travel. The policy stated specifically that spousal expenses would not be reimbursed. Mr Fekete submitted his receipts, which suggested that food and drinks for more than one person were being claimed for reimbursement. After suggesting initially that everything ordered was just for him, Mr Fekete later contradicted himself and said that his partner had travelled with him. After internal investigations, Mr Fekete was dismissed without notice on the grounds of gross misconduct. He then brought claims for wrongful and unfair dismissal.

At the Tribunal hearing, Employment Judge Illing considered both the statutory and common law provisions when ascertaining whether the dismissal was potentially fair. The Judge held that there had been a “breach of [Citibank’s] trust and confidence” in Mr Fekete as a result of his misrepresentation; that “conduct is a potentially fair reason for dismissal” and when throughout questioning at trial, Mr Fekete faced questions which were “clear and unequivocal [yet he] did not answer the questions asked of him”, thereby hindering the strength of his case. Both claims were dismissed and the reasoning for Citibank’s decision to terminate Mr Fekete’s employment without notice was deemed to be fair.

Points to note

The Fekete decision demonstrates quite simply how dishonesty can result in dismissal without notice. It raises poignant considerations both for employers and employees.

• Employers: How are expenses claims being reviewed and approved by the appropriate staff members? Do you have clear policies in place for expenses claims and are your employees aware of it? Are your employment contracts clear on the circumstances in which summary dismissal can take place?
• Employees: Are you aware of your employer’s policies on expenses claims? Have you ensured that all claims are legitimate and reflect the circumstances accurately? Your conduct when submitting expenses claims will be considered and if dishonest, may lead to your dismissal.

Fekete suggests several possible circumstances. For example, it may have been that Mr Fekete was not aware of Citibank’s expenses policy, but had that been the case, the dismissal was still deemed fair by the Employment Judge, so the overriding consideration in this case is based on the conduct of the employee.

In summary, coherent and accessible policies ensure both parties are clear on what can be claimed and even with potential mitigation, dishonest conduct can have drastic consequences for employees, possibly leading to summary dismissal which may be deemed fair by a Tribunal.  

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