Disciplinary Procedure

Purpose

This Procedure explains how The ESG Institute Limited ("the Company") manages concerns about conduct, performance or behaviour that may amount to misconduct or gross misconduct. Its objectives are to promote fair, consistent and transparent handling of disciplinary matters, to encourage improvement where possible, and to protect the rights of employees and the legitimate interests of the Company, learners, clients and the public. The Procedure is designed to meet the statutory standards of the Employment Act 2006 (Isle of Man) and the ACAS Code of Practice on Disciplinary and Grievance Procedures (as a recognised benchmark of good practice).

Scope

The Procedure applies to all employees regardless of length of service or contractual status. It does not apply to self‑employed consultants, contractors or agency workers, whose engagement may be terminated under contract if serious issues arise. Probationary employees are covered but timescales may be shortened to align with probation review periods.

Principles

Disciplinary action will only be taken after a reasonable investigation and a fair hearing. Allegations will be put to the employee in writing, the employee will have adequate time to prepare, and they may be accompanied by a work colleague or trade‑union representative at any formal meeting. Decisions will be based on the balance of probabilities, taking account of all evidence and mitigating factors. The employee has the right of appeal. No employee will be dismissed for a first act of misconduct unless it amounts to gross misconduct.

Informal Resolution

Line‑managers are encouraged to address minor conduct or performance issues promptly and informally through coaching, feedback or counselling. The manager should explain the standard required, set clear improvement expectations and agree a review date. Where informal action succeeds, no formal record is kept on the employee’s personnel file beyond brief notes of the discussion.

Investigation

If an allegation may warrant formal action, the Company will appoint an Investigating Officer, who will collect facts, interview witnesses and gather relevant documents without unreasonable delay. The employee will be invited to an investigatory meeting to give their account; they do not have a statutory right to be accompanied at this stage but it may be allowed at the Company’s discretion. If the allegation involves potential gross misconduct or where the presence of the employee could hinder the investigation, the employee may be suspended on full pay for the minimum period necessary. Suspension is not a sanction and will be confirmed in writing stating the reason and expected duration.

Formal Disciplinary Hearing

When the investigation is complete and there is a case to answer, the employee will receive a letter setting out the specific allegations, relevant evidence, possible consequences and details of the hearing (date, time, location, chairperson). At least five working days’ notice will be given. The employee may be accompanied. The hearing will be chaired by a manager not previously involved, with HR support. The Investigating Officer will present findings, the employee will respond and may question evidence, call witnesses and submit mitigating factors. The hearing may be adjourned if new information emerges.

Possible Outcomes and Sanctions

After considering all evidence, the Chair will decide on one of the following outcomes and confirm in writing within five working days:

  • No action – if the allegation is not substantiated.

  • Verbal warning – for minor misconduct; retained on file for six months.

  • First written warning – for misconduct or repeated minor issues; lasts twelve months.

  • Final written warning – for serious misconduct or failure to improve; lasts twenty‑four months.

  • Dismissal with notice – for further misconduct during the currency of a final warning or for very serious misconduct.

  • Summary dismissal – for gross misconduct, effective immediately without notice or pay in lieu.
    Alternative sanctions such as demotion, loss of increment, reassignment or unpaid suspension may be applied where appropriate and as an alternative to dismissal.

Examples of Misconduct and Gross Misconduct

Misconduct may include persistent lateness, unauthorised absence, minor breaches of policy, misuse of email or minor insubordination. Gross misconduct includes theft, fraud, deliberate falsification of records, violence, serious bullying or harassment, gross negligence, serious breach of health and safety, wilful damage to property, serious breach of the Information‑Security Policy, unlawful discrimination, possession of illegal drugs on Company premises, serious conflict of interest or any act likely to bring the Company into disrepute. This list is illustrative, not exhaustive.

Appeals

The employee may appeal in writing within ten working days of receiving the outcome, stating the grounds (procedural error, new evidence, disproportionate sanction). An Appeal Manager senior to the original Chair and not previously involved will convene an appeal hearing as soon as practicable. The employee retains the right to be accompanied. The Appeal Manager may uphold, overturn or reduce the sanction. The decision will be confirmed in writing within five working days and is final.

Records and Data Protection

Disciplinary records will be kept confidential and in accordance with the Data‑Retention Schedule. Warnings will be expunged after their expiry unless relevant to ongoing patterns of behaviour. Notes made during investigations and hearings will be retained for six years from the conclusion of the process or longer if litigation is pending.

Overlapping Grievances

If an employee raises a grievance during the disciplinary process, the Company may suspend the disciplinary procedure until the grievance is resolved, or deal with both issues concurrently if they are related.

Review

This policy is to be reviewed every two years, or earlier if there are significant changes in law or our operations.

Latest update: June 30, 2025.

This Policy is non‑contractual and may be amended at the Company’s discretion.