"What the tribunal have to decide every time is, broadly expressed, whether the employer who discharged the employee on the ground of the misconduct in question ... entertained a reasonable suspicion amounting to a belief in the guilt of the employee of that misconduct at that time. That is really stating shortly and compendiously what is in fact more than one element. First of all, there must be established by the employer the fact of that belief; that the employer did believe it. Secondly, that the employer had in his mind reasonable grounds upon which to sustain that belief. And thirdly, we think, that the employer, at the stage at which he formed that belief on those grounds, at any rate at the final stage at which he formed that belief on those grounds, had carried out as much investigation into the matter as was reasonable in all the circumstances of the case. It is the employer who manages to discharge the onus of demonstrating those three matters, we think, who must not be examined further. It is not relevant, as we think, that the tribunal would themselves have shared that view in those circumstances. It is not relevant, as we think, for the tribunal to examine the quality of the material which the employers had before them, for instance to see whether it was the sort of material, objectively considered, which would lead to a certain conclusion on the balance of probabilities, or whether it was the sort of material which would lead to the same conclusion only upon the basis of being 'sure', as it is now said more normally in a criminal context, or, to use the more old-fashioned term, such as to put the matter 'beyond reasonable doubt'. The test, and the test all the way through, is reasonableness; and certainly, as it seems to us, a conclusion on the balance of probabilities will in any surmisable circumstances be a reasonable conclusion."
"... the question we have to ask is whether the applicants were dismissed for a reason in which the respondent truly believed on reasonable grounds after an adequate and reasonable investigation had been made."
"It was perhaps unfortunate that the boy could not be interviewed in detail to get an account of precisely what his complaint was so that this evidence could be put to the applicants. In effect the respondent found itself, through no fault of its own, in a position where it simply could not make detailed findings as to precisely what had been said and done on the relevant occasion and in what order and by whom, so that the actions of the respective applicants could be properly evaluated and the degree of guilt established. What was ultimately believed by Mr Guilding on the one hand or Mr Livick on the other could have been true but once the evidence of Mrs Rees and her son was not accepted as wholly reliable then on what evidence remained it would be possible to suspect at the one end of the spectrum an event in which a small child was reduced to terror by a number of larger adults crowding round him and threatening him, and at the other the situation where a cheeky little boy hit out perhaps in fun at someone of whom he was in no way afraid followed by a jocular threat which he did not take seriously. In those circumstances we feel that the respondent has not shown reasonable grounds for coming to the conclusion it did and that dismissal on those particular grounds was therefore unfair."