Unfair Dismissal

Once an employee has continuous employment of two years or more, they have the right not to be unfairly dismissed. Protection from unfair dismissal means if you then make the decision to dismiss, you must have a ‘fair’ reason to do so. These fair reasons are set out in statute. They are because of:

– the employee’s capability or qualifications
– the employee’s misconduct
– a redundancy situation has arisen
– there is a statutory restriction
– some other substantial business reason

You must also show that in all the circumstances you acted reasonably and went through a ‘fair’ procedure.

If you cannot show that you had a ‘fair’ reason to dismiss and went through a ‘fair’ procedure, then the dismissal is likely to be found to be unfair.

In most cases, employees must have worked for two years to bring a claim. However, there are exceptions when this two year qualifying period is not required. For example, where the employee establishes that the reason for a dismissal was related to a whistleblowing disclosure.

If a claim for unfair dismissal is made against your business then there are three remedies available. The Employment Tribunal can order that:

– the employee is given their job back (reinstatement)
– the employee is given a different job (re-engagement)
– you pay the employee compensation

The compensation that can be awarded for unfair dismissal is considerable. The amount increases each year in April and is now in excess of £100,000.

In a worst-case scenario, Employment Tribunal claims have the potential to cause serious and irreparable damage to your business reputation. All Employment Tribunal decisions are now published online. These decisions can be read by your current and prospective employees and by your customers and business contacts.

If you are going to dismiss or receive an Employment Tribunal claim, then it is time to take specialist legal advice. Our Employment Team is experienced at responding to unfair dismissal claims. We shall help you navigate the process, advise you upon the merits of the claim and whether you should consider fighting, or settling. We shall give you sound and pragmatic advice to achieve the best possible outcome.