5 Tips to Help Businesses Avoid Unfair Dismissal Claims

The dismissal of an employee for a reason other than one allowed by law, or without following a fair and reasonable procedure, may lead to a claim for unfair dismissal. Dismissing without giving the required period of notice may lead to a wrongful dismissal claim, and if the dismissal is for a discriminatory reason, there may also be a discrimination claim.

Compensation for a successful unfair dismissal claim can be substantial. Irrespective of whether a claim succeeds, the management time and legal costs spent in defending it may be significant and are not usually recoverable. Such time and costs can be avoided if you take the time to do things properly.

What is a Lawful Dismissal?

In general terms, you must ensure that when considering the dismissal of an employee you:

• Have a fair reason for dismissal, follow a fair procedure, and act fairly and reasonably.
• Comply with the terms of the employment contract, particularly the notice period.
• Do not discriminate unlawfully.

Even with a lawful reason, the dismissal process must be handled fairly. Disciplinary and dismissal procedures should be made known to staff, ideally in an employee handbook.

5 Management Tips to Avoid Unfair Dismissal Claims

1. Resolve all issues as soon as they occur

Tackling issues with employees as soon as they occur is an effective measure to prevent them from escalating. Try to resolve problems informally first but make it clear that a more formal process could be used if the issue is not resolved. Involving HR at an early stage is advisable.

2. Use probationary periods effectively

If there are legitimate concerns about a new employee, it may be possible to extend their probationary period or dismiss them at the end of it, before they gain two years' service and qualify for unfair dismissal rights.

3. Conduct regular appraisals

Conduct regular appraisals to give an honest assessment of performance and allow employees to raise concerns. Do not give overly flattering reviews if they are undeserved, as this could make proving a performance-related dismissal more difficult. Ensure there are written records for each appraisal.

4. Be aware of how stress affects performance

Stress can be a factor in performance issues and, in severe cases, could be classed as a disability in law or form the basis of a personal injury claim. Stress is also a common factor in Constructive Dismissal claims, so all grievances must be handled properly.

5. Avoid Victimisation

If an employee has raised a grievance or claim in the past, ensure that any further management of that employee is dealt with fairly and without influence from previous issues, to avoid a claim of Victimisation.

Next Steps for Your Business

With the help of specialists, employers can take practical and considered steps to minimise the risk of Unfair Dismissal claims. By outsourcing to a team of Employment Law solicitors, businesses can ensure risk is prevented, management time is saved, and employee relations are improved.

Watch Our Webinar on Unfair Dismissal

For a more in-depth discussion on this topic, watch our recent webinar hosted by our expert employment law team.

Frequently Asked Questions