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Was Tesco right to suspend?

 22nd Sep 2014

Tesco has today stunned the markets by confessing to having overstated its half-year profit guidance by £250m.  The news prompted a plunge in Tesco's share price, which closed 11.6% lower at 203p.

An investigation has been launched and four executives, including the UK Managing Director, have been suspended.

Employers should only suspend:

  • in cases of alleged serious misconduct
  • where there is a potential threat to the business or other employees
  • where it is not possible to properly investigate if the employee remains at work
  • where relationships have broken down

Employers should have a clear disciplinary procedure, setting out rules of conduct as well as possible sanctions for misconduct and gross misconduct.

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