What is a fair dismissal?

In a claim to the labour tribunal, an employer must show that the reason for dismissal, or the main reason if there is more than one, is one of the fair reasons according to the law under the 1996 Employment Rights Act.

These are the reasons related to:

the ability or qualification of an employee to do the work that he or she does;

employee behaviour;

the work of the employee becoming redundant; and

where continuing work will mean that the employer or employee will violate the law.

If the original reason you have been dismissed does not fall under one of the above categories, you might have a case for unfair dismissal. However, there are several other important reasons that justify dismissal, so it could still be a fair dismissal. The legal expression is “such a substantial reason as to necessitate dismissal of an employee from remaining in the position currently held by that employee”.

Examples of fair dismissals include:

dismissal due to an unreasonable refusal to approve changes to the terms and conditions;

dismissal due to serious interference in ‘mutual confidence and trust’;

dismissal due to pressure from a third party (for example from a major customer or supplier);

dismissal for refusing to sign a restrictive agreement;

dismissal due to the return of the original post holder, in which the role is temporarily filled, for example assignments or childbirth.

What is an unfair dismissal?

Unfair termination is termination of employment by the employer, with or without notice of termination of employment, where:

the reason for dismissal is not a reasonable reason according to the law; or

the reason for dismissal is due to one of the reasonable reasons under the law, but the employer has not acted in a reasonable manner in deciding to fire,

The employer must show that the reason, or the main reason where there is more than one, is related to one of the following:

ability or qualifications;

behaviour;

redundancy; and / or

legal requirements (e.g. holding a certain licence).

In addition, if the reasons are not listed above, but there are a number of ‘other substantial reasons’ of the kind that can justify the dismissal of someone in that position, it can still be a fair dismissal. For advice about employment law, consider Huddersfield Solicitors like https://bridgelawsolicitors.co.uk/services-for-individuals/family-law/holmfirth-huddersfield-family/

Examples of substantial reasons that have been used by employers to justify a fair dismissal include:

refusal to accept changes to the terms and conditions;

refusal to sign a restrictive agreement;

the return of the original post holder after the assignment; or

serious interference and confidence.

In each case, whether the employer’s reason for justifying dismissal as fair depends on all the facts. Retirement is no longer a fair reason for dismissal.

The law also states that taking into account the reasons for dismissal, the employer must act appropriately.

The guidelines created over time by courts and tribunals have emphasized the importance of employers operating fair and reasonable procedures. Specifically, failure by either party to comply with the Acas Code of Practice regarding Discipline and the Complaints Procedure will be taken into account by the labour tribunal. However, the Acas Code does not apply to:

dismissal due to redundancy;

dismissal due to expiration and not renewing the contract with a certain period of time;

dismissal where long-term health means that employees are no longer healthy enough to carry out their role;

dismissal for ‘several other substantial reasons’.

Even though the Acas Code does not apply in this situation, employers must still act fairly and follow fair procedures.