Head of Team and solicitor at WorkNest Alexandra Farmer considers the right and wrong ways to terminate an employee’s contract
When it comes to dismissing an employee, there are right and wrong ways to go about it. Employers who make a mistake could find themselves in an Employment Tribunal.
With the average award for unfair dismissal sitting at £10,812, missteps can be costly. It’s therefore essential that employers understand what a fair dismissal process looks like, what might constitute unfair dismissal, and what dismissals are considered automatically unfair.
What is a fair dismissal?
There are two key ingredients to the fair dismissal process. They are having a valid reason to dismiss; and acting reasonably in the circumstances.
In relation to the first criteria, the Employment Rights Act 1996 details five potentially fair reasons for dismissal. These are listed as firstly, dismissal related to an employee’s conduct, such as for theft, fraud, bullying or negligence. This could be either one serious incident that warrants dismissal for a first offence, known as gross misconduct, or a series of more minor offences, such as persistent lateness (see separate panel).
The second is a dismissal related to the employee’s capability or qualification for the role. This might be a long-term sickness absence or performance concerns.
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