Unfair Dismissal

Information about Unfair Dismissal in the UK (December 2013)

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The 5 Potentially Fair Reasons for Dismissal

• Conduct – theft, violence, abuse, etc• Capability – the employer believes the employee is

unable to properly do their job• Redundancy – closing of the business, the business

needs less employees to complete work, etc• Statutory restriction – eg: a delivery driver loses their

licence, etc• Other substantial reasons – e.g. restructuring, the

employee is in prison, severe relationship breakdown, etc

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What is Unfair Dismissal?

It isn't one of the five aforementioned potentially fair reasons for dismissal.

OR

It is one of the five potentially fair reasons for dismissal, but the dismissal is not procedurally or substantially fair.

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What are the fair procedure rules?

• Even if classed as a potentially fair dismissal, employers must carry out a fair procedure.

• It is suggested that employers follow the ACAS Code of Conduct when dismissing an employee for conduct or capability or other substantial reasons.

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Are there any time considerations?

• Employees that commenced employment on or after 6th April 2012 are required to have been continuously employed for two years in order to be eligible to claim for unfair dismissal (including part-time workers).

• Employees that commenced employment before 6th April 2012 only require one year's continuous employment to be eligible to claim for unfair dismissal.

• The employee must present the claim to the tribunal within three months of the date their employment was terminated.

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Constructive Dismissal and Unfair Dismissal

• If an employer's behavior towards their employee is so bad that the employee feels they have no alternative than to resign, this could amount to a claim for constructive dismissal.

• In certain circumstances, this situation can also lead to an unfair dismissal claim.

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What Compensation Options are there?

Compensation can be Awarded through the basic award and the compensatory award.

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The Basic Award?

The basic award provides an amount equivalent to a statutory redundancy payment, which is dependent upon the employee’s age and length of employment:

• For employees aged 41 and over: 1.5 week's pay for each year of employment• For employees aged 22 to 40: 1 week's pay for each year of employment• For employees aged 21 and under: 0.5 week's pay for each year of

employment

The maximum amount of years calculated is 20, and the level of a week's pay is subject to statutory limits. From February 2013, this is £450.

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Compensatory Awards

• Calculated on the loss the employee has incurred as a result of dismissal, capped at £74,200 or a year's salary (whichever is less)

• The length of time taken to find a new job is also considered

• A Tribunal can also order that the employee is reinstated in the business

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Time Limits

If you receive a form of complaint, or ET1, it is important that you observe the correct time limits:

• A company usually has 28 days to respond, and extensions are granted only in exceptional circumstances.

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Spratt Endicott

We provide an extensive range of business law services ranging from commercial and employment work to dispute resolution and debt recovery. Our law firm specialises in a number of private client legal services from conveyancing and family law issues such as divorce to wills and probate.

For more information on our Unfair Dismissal service, please contact us on 0844 887 0540

http://www.se-law.co.uk/business/employment/Unfair-Dismissal.aspx

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Please Note

• This slide presentation is a general guide only. It is not comprehensive. Specific advice should be sought in relation to the particular facts of a given situation.

• Spratt Endicott is authorised and regulated by the Solicitors Regulation Authority under SRA Number 364149.