Ms McNaught worked as a telesales executive selling internet security systems. An internal investigation by Netintelligence managers into late payments revealed a number of contracts that caused concern. In particular Ms McNaught claimed that a major sale had been concluded, although it appeared not to have passed the quotation stage. She was dismissed for gross misconduct following a disciplinary hearing, for falsification of sale records.
An employment tribunal concluded that the dismissal was unfair, albeit that there was some contributory conduct towards the dismissal from Ms McNaught. Netintelligence appealed, arguing that the decision was perverse.