What are fair reasons for dismissal?

Getting fired is never a simple process, whether you’re the employer firing or the employee getting fired. When all other options have been exhausted and the proper procedures have been followed, sometimes nothing else can be done but to terminate the contract.

But not all grounds for termination are created equal. What are the five acceptable reasons for termination and which ones could get an employer into trouble?

Fair and unfair dismissals

How may a dismissal be deemed fair or unfair? Employers risk losing an employment tribunal case if they don’t ensure that they are terminating employees in a fair manner and according to the law. First and foremost, employers must ensure that they have effective disciplinary and capability policies in place. These policies should include guidelines so that workers are aware of what to expect.

The length of time an employee has worked for the organisation determines whether they are eligible to file a regular unfair dismissal claim. Employees typically need to have worked for the company for at least two years before filing a claim for ordinary wrongful dismissal.

Be aware that a worker with fewer than this many years of service may still be entitled to file a claim for wrongful termination, automatic unfair dismissal, or discrimination.

The 5 fair reasons for dismissal

These are the five reasons for dismissal that are deemed legally ‘fair’:

1. Conduct

In this instance, a worker is being let go for a cause associated with their behaviour. The definition of misconduct in policy documentation and corporate rules should be made explicit; typical examples of misconduct include bullying, harassment, sluggish attendance, insubordination, and unexcused absences. For example, fraud, assault, gross negligence, or major insubordination are all examples of gross misconduct, which is more serious in nature and includes actions that are highly serious or have very serious ramifications for the company.

A single instance of serious misbehavior can justify a fair dismissal without prior notice or any kind of payment in place of notice.

However, if an employee is fired for misbehavior (as opposed to gross misconduct), they are typically entitled to full notice or cash in place of notice and must first receive a series of warnings.

misbehavior off the job. Removing an employee for behavior outside of the office may be acceptable if there is proof that the behavior has some negative effects on the employee’s performance or the employer’s operations (such as harming the employer’s reputation). These types of dismissals have increased dramatically due to the increased usage of social media.

2. Capability or performance

However, if an employee is fired for misbehavior (as opposed to gross misconduct), they are typically entitled to full notice or cash in place of notice and must first receive a series of warnings.

misbehavior off the job

Removing an employee for behavior outside of the office may be acceptable if there is proof that the behavior has some negative effects on the employee’s performance or the employer’s operations (such as harming the employer’s reputation). These types of dismissals have increased dramatically due to the increased usage of social media.

If an employer wants to fire an employee for capability (performance) reasons, they must first follow a fair procedure, which is likely to involve placing the employee on a formal performance improvement plan, giving them some realistic goals to work toward, regularly reviewing their progress, giving them extra training if necessary, and giving them a number of warnings to improve before making a decision to fire them.

When an employee is ill, an employer is obligated to refer them to occupational health, discuss their health with them and their GP, and think about workplace modifications or alternate positions before considering dismissal.

3. Redundancy

Another legitimate cause for an employer to fire an employee is redundancy, such as when a company closes, a workplace closes, or when there is less demand for a certain type of labor. In order to avoid being fired unfairly, the redundancy selection process must be fair and transparent from the start (including a consultation procedure and examination of potential alternative work). It’s vital to exercise caution because, in some situations, such as if the employee was chosen because she is pregnant, a dismissal on the basis of a legitimate redundancy will be inevitably unfair.

4. Statutory illegality or breach of a statutory restriction

A fair basis to fire an employee is if their continued performance in their capacity violates the law or other regulations. If so, a formal termination process must still be followed. The following are a few examples of dismissals that might fit into this category:

Since the employee’s right to work in the UK has expired, continuing employment would be against immigration laws.

• The employee needs to drive to perform their job but has lost their driver’s license.
• The employee no longer possesses a qualification that is necessary for them to perform their job.
• The employee’s criminal background is discovered by the company.

5. Other reasons

In actuality, depending on the circumstances, there are many acceptable reasons for dismissal. Another substantial reason (SOSR) that supports the dismissal may apply in this situation. An SOSR frequently entails a breakdown in the relationship of trust or confidence between the employer and the employee, according to a Bevan Brittan article. An illustration of an SOSR termination would be where a client of the employer demands the employee be fired or else they would take their business elsewhere.

Following a fair dismissal process

A legitimate reason for dismissal must be provided, and all employees must be treated equally and sensibly throughout the dismissal process. Before launching a formal disciplinary procedure, it’s best to attempt an informal resolution to any problems. If dismissal is the final result, there are steps that can be taken to guarantee a fair procedure. Employers should take the following actions to ensure that the disciplinary process is fair, in accordance with the Acas code of practice on disciplinary and grievance procedures:

• Establish the case’s specific facts (we recommend using an HR software system to help make sure you have the data and documents you need at the ready)
• Let the employee know about the issue
• At a disciplinary hearing, permit the employee to be attended by a coworker or a union representative.
• after the disciplinary meeting, choose the proper course of action.
• Give staff members a chance to contest the decision

Following this code of conduct is advised since an employment tribunal is likely to consider it when determining whether the employer acted properly when terminating the employee. Are you determining whether dismissal is the best course of action? When it comes to disciplinary proceedings and termination, we advise adhering to official Acas rules, business policy, and professional guidance because it is crucial to ensure compliance for the company’s success.

What am I expected to do as an employer?

Once you’ve decided to fire a worker, you should make sure that you do it in accordance with the terms of their employment contract. Unless the employee’s dismissal is the result of their flagrant misconduct or repudiatory violation of contract, in which case you may be allowed to do so without notice or with money in lieu of notice (known as a summary dismissal). It is important to keep in mind that you would forfeit any contractual benefits, such as post-termination limitations, if the employee is fired for violating the terms of the agreement.

How can I minimise the dangers of a discrimination lawsuit?

Last but not least, make sure the firing was not motivated by discrimination. A protected trait, such as a disability, gender, or race, cannot be the reason for the dismissal (either directly or indirectly), and you cannot treat the employee differently during the dismissal procedure. It can be beneficial to follow a fair procedure and record the judgement.

Is it necessary for an employer to provide employees with written notice of termination?

Employees who have worked for two years or more are eligible to obtain a written explanation of their dismissal, which must be given within 14 days. Regardless of their duration of service, an employee is entitled to a written statement if they are pregnant, on statutory maternity or adoption leave, or both. Even if an employee has less than two years of service, it is advisable to confirm the information in writing, especially when it comes to handling discrimination claims.

Contact Clarity Simplicity for advice on the type of dismissal

If you’re looking to dismiss an employee without notice and are looking for legal advice on the five fair reasons for dismissal, contact our employment law team at Clarity Simplicity who will guide you to follow a fair procedure first before the employee is dismissed.