Letting go of a staff member
Jun 30 2008
First and foremost, play by the rules or you could find yourself on the end of a very expensive unfair dismissal claim. Your reasons for letting go of a person must be purely work related.
This is especially true if the employee has worked for the company for 12 months or more because they have then gained unfair dismissal rights.
Here is a guide to the basics to help you avoid paying any unnecessary compensation and explains the basis for claims of ‘unfair’ dismissal:
‘Wrongful’ and ‘unfair’ dismissal
Wrongful dismissal applies to a breach of contract by the employer. Prior to the Industrial Relations Act 1971, if any employee felt they had been wrongfully dismissed their only option was to pursue a breach of contract claim in the County Court.
That required a solicitor and, if you lost your claim, not only did you have your solicitor’s costs to pay but those of the other side as well. It was a lot of effort and risk for very little return.
The government established the Industrial Relations Act 1971 (now the Employment Rights Act 1996), which introduced the concept of fairness to dismissals.
It stated that there were only five potentially fair reasons for dismissal – conduct, capability, legality, redundancy or some other substantial reason.
To find out more about unfair dismissals, click here