Dismissals

Dismissals

We advise employers on managing dismissals lawfully and fairly, helping to reduce legal risk and defend against claims when they arise. Our goal is to provide clear, pragmatic advice so you can deal with employment issues confidently.

We advise employers on managing dismissals lawfully and fairly, helping to reduce legal risk and defend against claims when they arise. Our goal is to provide clear, pragmatic advice so you can deal with employment issues confidently.

Law for life

What is Unfair Dismissal?

Under Section 94 of the Employment Rights Act 1996, employees have the right not to be unfairly dismissed. A dismissal may be considered unfair if there was no valid reason for it or if the employer failed to follow a fair process.

Valid reasons for dismissal can include conduct issues such as gross misconduct or repeated disciplinary problems (where proper procedures are followed), capability or performance concerns where an employee is unable to meet role requirements despite support, redundancy if the role is no longer required and fair consultation and selection processes are carried out, or illegality where continuing employment would breach the law, for example, immigration or regulatory restrictions.

In addition, dismissals may be justified under Some Other Substantial Reason (SOSR), such as a breakdown in working relationships or reputational risks. However, even where a valid reason exists, dismissals can still be found unfair if employers do not comply with the Acas Code of Practice on Disciplinary and Grievance Procedures. Importantly, failure to follow the correct procedures can increase compensation awards by up to 25%.

Law for life

What is Constructive Dismissal?

Constructive dismissal occurs when an employee resigns in response to their employer’s serious breach of contract. Although the employee resigns, the law treats this as a dismissal by the employer.

It typically arises where the employer’s conduct makes the working relationship untenable, for example:

  • Unjustified demotion or significant changes in duties
  • Pay reductions or unlawful deductions from wages
  • Failure to deal with bullying, harassment or grievances
  • Unsafe or toxic working conditions
  • Unreasonable disciplinary action
  • Forcing changes to working arrangements without consultation
  • Unjustified demotion or significant changes in duties
  • Pay reductions or unlawful deductions from wages
  • Failure to deal with bullying, harassment or grievances
  • Unsafe or toxic working conditions
  • Unreasonable disciplinary action
  • Forcing changes to working arrangements without consultation

Speak to our Employment Team

If you need advice about your rights at work or support with a dispute, we are ready to help.

Employment

How Franklins Solicitors Can Help

Early Intervention

We step in quickly to defuse workplace disputes before they escalate into costly claims.

Dismissal Procedure Advice

Clear guidance on handling dismissals lawfully to reduce the risk of unfair or constructive dismissal claims.

Tribunal Representation

Skilled defence at employment tribunals to protect your business against employee claims.

Settlement Agreement Support

Practical advice to negotiate and finalise settlement agreements efficiently and cost-effectively.

HR & Policy Reviews

Comprehensive reviews of contracts, policies and procedures to keep your organisation compliant and protected.

Employment

How Franklins Solicitors Can Help

Early Intervention

We step in quickly to defuse workplace disputes before they escalate into costly claims.

Dismissal Procedure Advice

Clear guidance on handling dismissals lawfully to reduce the risk of unfair or constructive dismissal claims.

Tribunal Representation

Skilled defence at employment tribunals to protect your business against employee claims.

Settlement Agreement Support

Practical advice to negotiate and finalise settlement agreements efficiently and cost-effectively.

HR & Policy Reviews

Comprehensive reviews of contracts, policies and procedures to keep your organisation compliant and protected.

Employment

Dismissals FAQs

Unfair dismissal happens when an employer dismisses an employee without a fair reason or fair process. Constructive dismissal occurs when an employee resigns because of their employer’s serious breach of contract, such as bullying, pay cuts, or unsafe conditions.

Tribunals can award compensation for lost earnings and benefits, increase awards by up to 25% if procedures weren’t followed and damage your reputation. Defending claims also costs time, money and resources.

Ensure contracts and policies are legally compliant, follow fair procedures for dismissals, handle grievances properly, keep accurate records and train managers in employment law basics. Seeking early legal advice can prevent mistakes.

For a dismissal to be fair, an employer must show both a legally recognised reason and that a fair procedure was followed.

There are five potentially fair reasons for dismissal: conduct, capability, redundancy, statutory restriction and some other substantial reason. However, having a valid reason alone is not enough. Employers must also carry out a reasonable investigation, hold a fair disciplinary or consultation meeting and offer the employee a right of appeal.

If a fair process is not followed, a dismissal can still be found unfair even where the underlying reason was justified. Ensuring your procedure is compliant helps protect your business from Employment Tribunal claims.

Dismissing an employee without a fair reason or proper process can lead to costly claims against your business. The most common risks include unfair dismissal, wrongful dismissal for failing to give correct notice and discrimination claims linked to the decision.

Even where there is a valid reason for dismissal, failing to follow a fair procedure in line with the Acas Code of Practice can increase compensation by up to 25%. Employment Tribunal claims can result in financial awards, legal costs management disruption and reputational damage.

Taking advice before making a final decision can significantly reduce the risk of a successful claim.

Dismissing an employee on sick leave can be tricky and may result in claims of discrimination or unfair dismissal. Employers must ensure that the dismissal is for a fair reason, such as long-term absence affecting business operations and must follow a fair process, including consideration of reasonable adjustments or alternative roles.

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