Employee Dismissals

Employee Dismissals can be a daunting prospect and it’s easy to get it wrong. Are you at the point where you’re considering dismissing a member of staff, but are worried about taking the final step? We support small businesses to dismiss staff safely and with confidence. 

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Employee Dismissals advice

Navigate Dismissals with Confidence

Ensure every step of the dismissal process is fair, compliant, and professionally handled to protect your business.

Expert Support for Complex Terminations

From gross misconduct to redundancy, get tailored advice for handling even the most sensitive dismissal scenarios.

Minimise Risk and Avoid Tribunal Claims

Follow best practices to reduce the risk of costly legal disputes and maintain a positive reputation.

Compassionate and Clear Communication

Manage dismissals with transparency and empathy to uphold morale and preserve workplace relationships.

If, after giving the employee an opportunity to improve their performance or correct their behaviour and there is still a problem or the offence is really serious, then the employees dismissal may be the only course of action left to take.

Whatever the cause, dismissal must follow a fair, consistent and legal process. Employees have the right not to be unfairly dismissed. The cap on the award for successful unfair dismissal claims currently sits at £105,707.

To assist your disciplinary and grievance process and inform any decisions of dismissal, it is important to have the correct HR policies in place in your small business. Policies that cover employee conduct and performance set out your expectations at the beginning of the employment relationship.

When these policies are drafted and communicated effectively, they’ll protect your business in the event of misconduct or poor performance that must lead to dismissal.

We can write your HR Policies and provide you with guidance and support to ensure a legally compliant dismissal process.

What constitutes a dismissal?

What is a dismissal?

A dismissal (sometimes referred to as a ‘termination’) is when an employer ends an employee’s contract, with notice, or without notice (for gross misconduct). A dismissal can happen at any time. It could be during a contract or at the end when an employer chooses not to renew it.

Dismissals can happen for any number of reasons, too. It could be an economic turndown that forces the employer to make redundancies, or the dismissal might be due to poor performance or misconduct on the part of the employee.

Employers must be fair and reasonable when deciding whether to dismiss an employee. If they aren’t, the employee may be able to make a claim for unfair dismissal, regardless of whether the reason for the dismissal was a good one.

Employers must be fair and reasonable when deciding whether to dismiss an employee. If they aren’t, the employee may be able to make a claim for unfair dismissal, regardless of whether the reason for the dismissal was a good one.

Employers should be particularly careful where allegations of discrimination could be brought, as employees do not need two years’ service to file a claim with an Employment Tribunal.

Why getting employee dismissals right is so important

Regardless of what type of business you have, having the correct HR disciplinary and employee dismissals procedures in place and knowing how to fairly and legally carry out an employees dismissal is vital to your business and mitigating risk.

When dismissing an employee, one bad move could lead to the employee filing an unfair dismissal claim in an Employment Tribunal — which could end in a costly and stressful court case. As well as the time, sleepless nights and potentially high costs involved with defending a claim, unfair dismissals can damage your small business’s reputation if news travels that you’ve treated an employee unfairly. 

It can also have a negative effect on other employees, too. If an employee sees a colleague filing an unfair dismissal claim, doubts could creep in and they could start to look for a job elsewhere.

Employee Dismissals process

Let’s See How It Works

This process demonstrates a commitment to fair and legally compliant dismissals by prioritising investigation, open communication, and the consideration of improvement plans.

01

Thorough Investigations & Documentation

02

Formal Disciplinary Meeting

03

The Decision & Communication

04

Right of Appeal

How can we help you?

Need to dismiss an employee? We can provide you with expert HR support to do employee dismissals right first time around.

Carrying out an employee dismissal can be tough. We offer step-by-step HR guidance to ensure fair and legal dismissals for your small business.

FAQ

Employee Dismissals

Here’s some of the most common questions we get asked about dismissals….

There are five main reason for dismissal in the UK: Conduct, Capability, Redundancy, Statutory restriction and ‘some other substantial reason’ (SOSR). 

The need for sufficient evidence and documentation is key to supporting the reasons for dismissal. 

A reason for dismissal and the following of a fair and consistent process in line with ACAS guidance.

ACAS Code of Practice 

Financial Risks

Compensation: If a tribunal finds the dismissal unfair, the employer may be ordered to pay the employee compensation. This includes:

  • Basic Award: Calculated like statutory redundancy pay, based on age, salary, and length of service.
  • Compensatory Award: For financial losses stemming from the dismissal (e.g., lost wages, pension contributions, job search costs). This award can be substantial, and currently has a cap of £93,878 or a year’s gross pay, whichever is lower.

Tribunal Fees: The employer may have to pay fees to the employment tribunal, even if they win the case.

Legal Costs: The company’s own legal costs for representation can be significant, regardless of the outcome.

Caution should always be taken with any dismissal but a dismissal due to gross misconduct should still have the process of an investigation to ensure a fair decision, with examples showing clear area(s) of gross misconduct. 

Having clear company policies, detailed record-keeping (e.g., performance reviews, warnings), seeking advice from HR professionals at Dekela or employment lawyers when complex issues arise.

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