The absences nobody wrote down
A warehouse worker is absent without permission for the fourth time in two months. Each time a different supervisor let it go. When the fifth one starts a disciplinary, there is no record of the first four.
What is misconduct?
Misconduct is behavior at work that breaks the organization's rules, whether a single act or a pattern, and it is a question of choice rather than ability. Gross misconduct is misconduct serious enough, or with effects serious enough, to end employment without notice, such as fraud, violence or gross negligence.
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Misconduct at work: three examples
The timesheets changed after the shift
A team leader edits the timesheets of two friends on the night shift so they are paid for hours they did not work. When payroll queries it, he says the system was wrong. The audit log says otherwise.
The desk head with a temper
A desk head at a regulated firm shouts at junior staff, mocks one in front of clients, and is excused because of his revenue. From 1 September 2026 serious bullying of that kind is a Conduct Rules breach.
What the law says
The Acas definitions and the Code
Acas defines misconduct as inappropriate behavior or action that breaks the organization's rules, and gross misconduct as acts that are very serious or have very serious effects, such as fraud, physical violence and gross negligence. The Acas Code of Practice on disciplinary and grievance procedures expects an investigation without unreasonable delay before any decision, and a tribunal can adjust an award by up to 25 percent where the Code is unreasonably ignored. Northern Ireland has its own code.
What the Directive requires once it is reported
Directive 2019/1937 covers misconduct that breaches Union law in the fields it lists, from public procurement to product safety and personal data. A report through an internal route must be acknowledged within seven days and handled by an impartial person or department, with diligent follow-up, which can mean an internal enquiry, an investigation or closure, and feedback within three months.
Defined by the code of conduct
No federal statute defines misconduct; the code of conduct does. Item 406 of Regulation S-K requires a listed company to disclose whether it has adopted a code of ethics, meaning written standards reasonably designed to deter wrongdoing, and if not, why not. Adoption comes from the listing rules: NYSE rule 303A.10 and Nasdaq rule 5610 require a code to be adopted and disclosed. Section 301 of Sarbanes-Oxley adds a confidential, anonymous route for accounting concerns.
How organizations manage it
Misconduct is managed by finding out what happened before deciding what to do about it.
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Someone not involved establishes the facts without unreasonable delay, hears the person, and where practicable is not the one who later decides. Suspension, if used, is with pay and as brief as possible.
Match the response to the category
Minor misconduct gets a conversation and a note, serious misconduct a formal warning, and gross misconduct can end employment without notice, but only after the investigation, never instead of it.
Follow the procedure in the Code
The Acas Code sets the steps: the case in writing, a meeting the employee can be accompanied to, a written decision without unreasonable delay, and an appeal heard where possible by a manager not previously involved.
Keep the record
Each incident is logged in one place, so the fourth lateness is seen beside the first three. From 1 January 2027 the unfair dismissal qualifying period falls to six months, so the record matters for more people.
Misconduct FAQ
Is misconduct illegal?
Usually not in itself. Misconduct is a breach of the employer's rules, and the consequences are contractual: a warning, a final warning or dismissal. Some misconduct is also a crime, such as fraud, theft or violence, and some is regulated: serious bullying or harassment falls within the Conduct Rules at firms under the Senior Managers and Certification Regime from 1 September 2026. In the US the same act can breach a listed company's code of ethics, which stock exchange listing rules require it to adopt.
What is the difference between misconduct and gross misconduct?
Acas draws the line at seriousness. Misconduct is inappropriate behavior that breaks the organization's rules: bullying, insubordination such as refusing to do work, or absence without permission. Gross misconduct is very serious or has very serious effects: fraud, physical violence, serious insubordination, and gross negligence, meaning a serious lack of care for duties or other people. Gross misconduct can justify dismissal without notice; ordinary misconduct normally gets a warning first.
What is non-financial misconduct?
It is the Financial Conduct Authority's term for serious bullying, harassment, violence and similar behavior towards colleagues. From 1 September 2026 the rule at COCON 1.1.7FR brings that conduct within the Conduct Rules for every firm with a Part 4A permission, as it already was for banks. Only serious conduct counts, and the FCA has said substantiated cases must be reported as a Conduct Rules breach where applicable and reflected in regulatory references.
How do you report misconduct at work?
Describe what happened, when, who was involved and which rule it breaks, and keep anything that shows it. Use the route in your organization's policy, or the whistleblowing route where the line manager is involved. A report of a crime, a breach of a legal obligation or a danger to health and safety can be a protected disclosure in the UK. Confide's intake, Echo, asks follow-up questions about anything missing before the report reaches the team.
See how a misconduct report is handled