Understanding Unfair Dismissal

Understanding Unfair Dismissal

In the UK, unfair dismissal laws are in place to ensure that employees are treated justly and fairly if their employment is terminated. We often advise clients on how to navigate these complex laws, and it’s clear that understanding your rights and employer responsibilities is crucial. Let’s explore what constitutes unfair dismissal, the legal standards surrounding it, and how individuals can protect their rights.

What Is Unfair Dismissal?

Unfair dismissal is a legal term defined by the Employment Rights Act 1996, which applies when an employer ends an employee’s contract of employment without fair reason or doesn’t follow a fair procedure. If an employee feels they’ve been unfairly dismissed, they have the right to challenge this decision in an employment tribunal.

Qualifying Criteria for Unfair Dismissal Claims

To bring an unfair dismissal claim, an employee must typically have worked continuously for the same employer for at least two years. Some exceptions apply, such as in cases of dismissal due to discriminatory practices or whistleblowing, which are protected from day one of employment.

Fair Reasons for Dismissal

An employer can only dismiss an employee for specific “fair” reasons. These are:

1. Capability or Qualifications – If the employee cannot perform their job to an acceptable standard, lacks necessary qualifications, or has health issues that affect their ability to work.
2. Conduct – Misconduct can be grounds for dismissal, but employers must investigate the conduct, follow a fair disciplinary process, and apply the appropriate sanctions.
3. Redundancy – If the employer needs to reduce their workforce due to operational changes, this could be grounds for redundancy dismissal. However, redundancy procedures must be followed fairly.
4. Statutory Illegality – If the employee’s continued employment would be illegal (e.g., a driver losing their licence).
5. Some Other Substantial Reason (SOSR) – A “catch-all” category, SOSR includes reasons not covered by the above categories, such as business reorganisation or conflicts of interest.

Procedural Fairness

A fair procedure is key to a lawful dismissal. Employers are required to:

• Follow a disciplinary or dismissal process, which includes a fair and objective investigation.
• Provide the employee with a written reason for dismissal.
• Allow the employee to have a representative present, typically during any formal hearing.
• Offer a right to appeal.

If an employer dismisses an employee without following these steps, even if they have a fair reason, it could still be considered unfair.

Examples of Unfair Dismissal

Some examples where an employee might claim unfair dismissal include:

• Constructive Dismissal – When an employee is forced to resign due to intolerable working conditions, which may include bullying, harassment, or major contract changes.
• Discrimination – Dismissal related to an employee’s protected characteristic, such as age, gender, race, or disability, is unlawful.
• Dismissal Without Notice or Procedure – Even if there’s a fair reason, not following due process can render the dismissal unfair.
• Whistleblowing – Dismissal related to raising concerns about malpractice or illegal activities within the company.

Remedies for Unfair Dismissal

If a tribunal finds that the dismissal was unfair, the employee could receive:

• Reinstatement – Returning the employee to their former job.
• Re-engagement – Providing a similar role within the company.
• Compensation – A financial award to cover lost earnings and other related losses.

Compensation can include a basic award, calculated similarly to redundancy pay, and a compensatory award, which accounts for lost wages, future losses, and other expenses.

Preventing Unfair Dismissal Claims

Employers can reduce the risk of unfair dismissal claims by:

• Having clear policies on disciplinary and grievance procedures.
• Providing regular training for managers on how to handle disciplinary matters.
• Ensuring documentation is thorough, especially concerning performance issues, conduct warnings, and any support offered to the employee.

Final Thoughts

Unfair dismissal laws help to maintain balance and respect within the workplace. Whether you’re an employer aiming to comply with these laws or an employee who feels they’ve been treated unjustly, legal advice can be invaluable. Consulting a solicitor early on can clarify your rights and responsibilities and help you make informed decisions.