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Investigator, Judge and Executioner. The €20,000 Procedural Trap ​Case Ref:  Natasza Korajda & Natalia Koziol v Mortgageline (ADJ-00047395)

27/03/2026
​It’s the nightmare scenario for any business owner: you discover two trusted employees are secretly plotting to set up a competing firm. You have the evidence, the breach of trust is clear, and you want them out. ​However, a recent WRC decision proves that even when you have the "smoking gun," a botched process can result in a five-figure payout for the "guilty" parties. ​The Facts ​The employer discovered the employees were preparing to launch a rival business. Viewing this as a fundamental breach of contract and a "subversive" act, the owner moved to dismiss them. ​The problem? The owner conducted the investigation, chaired the disciplinary meeting, made the decision to dismiss, and then sat on the appeal. ​The "Natural Justice" Fail ​The Workplace Relations Commission didn't argue with the reason for the firing—they focused entirely on the method. Under Irish law, every employee has a right to Natural Justice, which requires: ​The right to be heard: An unbiased hearing. ​Nemo iudex in causa sua: No one should be a judge in their own cause. ​By acting as investigator, judge, and executioner, the employer created an "infirm" process. The WRC ruled that because the owner was the one personally affected by the potential competition, he could not be seen as an impartial decision-maker. ​The Cost of the Shortcut ​Despite the employees' misconduct, the WRC found the dismissals procedurally unfair. The lack of a separate, independent person to hear the appeal was the final nail in the coffin. The employer was ordered to pay compensation, proving that in the WRC, procedure is king. ​The HR Checklist: How to Avoid This Trap ​Segment the Roles: Ensure the person investigating the facts is not the person deciding the sanction. ​The Independent Appeal: If you are a small business with only one director, hire an external HR consultant or solicitor to hear the appeal. This "arm's length" approach protects you from claims of bias. ​Cool Your Jets: Misconduct cases are emotional. Pause, follow your written disciplinary policy to the letter, and don't skip steps just because the evidence seems "obvious." ​
​It’s the nightmare scenario for any business owner: you discover two trusted employees are secretly plotting to set up a competing firm. You have the evidence, the breach of trust is clear, and you want them out. ​However, a recent WRC decision proves that even when you have the "smoking gun," a botched process can result in a five-figure payout for the "guilty" parties. ​The Facts ​The employer discovered the employees were preparing to launch a rival business. Viewing this as a fundamental breach of contract and a "subversive" act, the owner moved to dismiss them. ​The problem? The owner conducted the investigation, chaired the disciplinary meeting, made the decision to dismiss, and then sat on the appeal. ​The "Natural Justice" Fail ​The Workplace Relations Commission didn't argue with the reason for the firing—they focused entirely on the method. Under Irish law, every employee has a right to Natural Justice, which requires: ​The right to be heard: An unbiased hearing. ​Nemo iudex in causa sua: No one should be a judge in their own cause. ​By acting as investigator, judge, and executioner, the employer created an "infirm" process. The WRC ruled that because the owner was the one personally affected by the potential competition, he could not be seen as an impartial decision-maker. ​The Cost of the Shortcut ​Despite the employees' misconduct, the WRC found the dismissals procedurally unfair. The lack of a separate, independent person to hear the appeal was the final nail in the coffin. The employer was ordered to pay compensation, proving that in the WRC, procedure is king. ​The HR Checklist: How to Avoid This Trap ​Segment the Roles: Ensure the person investigating the facts is not the person deciding the sanction. ​The Independent Appeal: If you are a small business with only one director, hire an external HR consultant or solicitor to hear the appeal. This "arm's length" approach protects you from claims of bias. ​Cool Your Jets: Misconduct cases are emotional. Pause, follow your written disciplinary policy to the letter, and don't skip steps just because the evidence seems "obvious." ​
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