Employment (Business)

Fair Dismissal

Every employee who has over one year of continuous employment (subject to some exceptions) has the right to bring an action for unfair dismissal against their employer. An employer who dismisses a qualifying employee will be vulnerable to a claim for unfair dismissal in the employment tribunal unless the employer can show a potentially fair reason for the dismissal.

There are 5 potentially fair reasons: conduct; capability; redundancy; breach of a statutory restriction; some other substantial reason. The procedures used in the lead up to and final dismissal must also be fair.

If an employment tribunal finds that the dismissal is unfair it can order the employer to re-engage or reinstate the employee or, more commonly, pay the employee compensation.

If you are considering dismissing an employee for one of the potentially fair reasons, you must, where applicable, follow a fair procedure as set out in the Acas Code of Practice. Once you have made a decision to dismiss an employee, if that employee is likely to submit a claim against you, this has to be submitted within 3 months from date of dismissal. If a claim is submitted then you will have to show the tribunal that the reason to dismiss and the procedure followed was fair and reasonable.