^^^^ Thanks.
There were lots of meetings, letters/emails to and fro blah blah blah and several conversations with legal peeps, can't just sack anyone nowadays. EVERYTHING has to be in writing with a long clear chain of evidence documenting the path taken etc.
My bosses are petrified about being sued for unfair dismissal, being taken to a tribunal or other things, they'd rather "better the devil we know" than "all the fuss" but its my decision so its up to me to deal with this.