Dismissal Procedures

Dismissal procedures. Legal guidance for employers.

A legally sound dismissal requires both a fair reason and a reasonable and balanced procedure. Our employment law specialists guide and advise employers on dismissals and settlement agreements.

To avoid the risk of a dismissal being unfair an employer must not only have a potentially ‘fair’ reason to dismiss an employee but must also ensure that any final decision to dismiss is fair and reasonable having regard to all of the circumstances and after having followed a fair procedure.

Our employment solicitors guide you through every step, ensuring your decisions are robust and defensible.

‘Fair’ grounds on which you can dismiss

Employment law recognises five grounds on which a dismissal may be fairly made:

• Misconduct (e.g. theft, insubordination)
• Incapacity or capability (e.g. performance issues or a lack of ability to work due to ill health)
• Redundancy
• Some other substantial reason of a kind sufficient to justify dismissal. This is designed to be a ‘catch all’ provision and examples includes refusal to accept contract changes or a breakdown in relationship
• Statutory illegality (e.g. where it is illegal to employ someone because they do not have permission or the right to work in this country)

In any of these circumstances, we can advise you where the ACAS code on Disciplinary and Grievance Procedures applies and, where it does, the consequences of failing to comply, including potential uplifts to tribunal awards.

Where appropriate, we can also advise on a redundancy or severance package and draft up a legal binding settlement agreement

Requirements to bring an unfair dismissal claim

Other than in a very small number of situations an employee must have been continuously employed by their employer for two years in order to bring a claim for unfair dismissal.

There are also strict deadlines for filing claims in the employment tribunal.

The Government is currently consulting on making the right not to be unfairly dismissed a day one right as well significantly extending the time within which claims may be brought but it is not anticipated that these changes will be effective until 2026.

Remedies

The consequences of an employer getting it wrong are likely to involve an employee pursuing a claim for unfair dismissal.

In the event of a successful claim the remedies available include:

• An order that the employer reinstate or re-engage the employee
• An ‘additional’ award in circumstances where the employer fails to comply with an order for reinstatement or re-engagement
• Compensation made up of a ‘Basic’ and a ‘Compensatory’ award

In a very limited category of automatically unfair dismissals, interim relief may also be available before the tribunal has made a final determination as to whether the dismissal is unfair.

Interim relief takes the form of an order that the employer must continue paying the former employee’s salary pending the hearing and final decision, but is only available if the tribunal decides, at an interim hearing, that you the employee is likely to win at the full hearing.

Please contact a member of our team if you would like any further information.