Employment law is an important area that is relevant to all employers and employees. It governs the relationship between employers and employees, and covers a wide range of topics such as recruitment, terms and conditions of employment, and termination of employment, including acceptable dismissal reasons. One of the most important aspects of employment law is the grounds for employee termination.
In this article, we will explore the five potentially fair reasons for dismissal in the workplace and examples of what each of these legal reasons for termination could look like.
Five Acceptable Dismissal Reasons You Should Know
It is important for employers to be aware of the five potentially fair reasons for dismissing an employee in order to avoid any legal repercussions. Here are the five grounds for employee termination:
1. Conduct
One of the most common fair reasons for dismissal of an employee is for their conduct. This includes any behavior that is deemed unacceptable or inappropriate. Examples of misconduct include theft, dishonesty, violence, and harassment. In order for a dismissal to be considered a legal reason for termination, the employer must have a reasonable belief that the employee has committed misconduct. This belief should be based on an investigation that is conducted in a fair and impartial manner. The employee should also be given the opportunity to respond to the allegations before a decision to dismiss is made.
2. Capability
Another potentially acceptable dismissal reason is their capability. This refers to the employee’s ability to perform their job to the required standard. Examples of capability issues include poor performance, a lack of skill or knowledge, and long-term sickness absence. In order for this ground for employee termination to be considered fair, the employer must have given the employee sufficient training and support to enable them to perform their job to the required standard. The employer should also have followed a fair and reasonable procedure, which may involve giving the employee a warning or a period of improvement.
3. Redundancy
Redundancy is another potentially legal reason for the termination of an employee. This occurs when the employer no longer requires the employee’s job to be done or when the employer’s business needs to be restructured. Examples of redundancy include the closure of a department or a reduction in the workforce. To be considered a fair ground for employee termination, the employer must have a genuine business reason for the redundancy. The employer must also have followed a fair and reasonable procedure, which may involve consulting with the affected employees, identifying any suitable alternative employment, and offering a redundancy payment where appropriate.
4. Statutory restriction
A fourth potentially legal reason for termination is when there is a statutory restriction preventing the employee from continuing in their job. Examples of statutory restrictions include the revocation of a driving license or the loss of a security clearance. In order for a dismissal for a statutory restriction to be fair, the employer must have a genuine reason for the restriction and be able to demonstrate that there is no alternative job that the employee can do within the organization.
5. Some Other Substantial Reason (SOSR)
The final potentially fair reason for dismissing an employee is known as “some other substantial reason.” This is a catch-all category that covers any reason that does not fall into the other four categories. Examples of some other substantial reason include a breakdown in the working relationship between the employee and their colleagues or a refusal by the employee to accept a reasonable change in their terms and conditions of employment.
Complying with the Acceptable Dismissal Reasons
Once the employer has made a decision to dismiss an employee, they must follow a fair procedure in order to avoid an unfair dismissal claim. The fair procedure usually involves holding meetings with the employee to discuss the reasons for dismissal and allowing them to respond to any allegations made against them. Therefore, it is recommended that employers seek legal advice and support to ensure that they follow the correct procedure when dismissing an employee.