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EMPLOYMENT LEGISLATION

INDIVIDUAL RIGHTS OF EMPLOYEES: A GUIDE FOR EMPLOYERS AND EMPLOYEES - PL 716 (REV 11)

Dismissal and notice periods 

Written reasons for dismissal

Employee who are dismissed and have completed at least one year’s continuous employment are entitled to receive, on request (orally or in writing), a written statement of reasons for dismissal within 14 days. An employee dismissed during: 

  • her pregnancy or her ordinary or additional maternity leave
  • his or her ordinary or additional adoption leave

is entitled to a written statement of the reasons regardless of his or her length of service and regardless of whether or not he or she has requested it. 

There are further details about the written reasons for dismissal provisions in the document Rights to notice and reasons for dismissal (PL707).

Notice of termination

Both the employer and employee are normally entitled to a minimum period of notice of termination of employment. After one month's employment, an employee must give at least one week's notice; this minimum is unaffected by longer service. An employer must give an employee at least one week's notice after one month's employment, two weeks after two years, three weeks after three years and so on up to 12 weeks after 12 years or more. However, the employer or the employee will be entitled to a longer period of notice than the statutory minimum if this is provided for in the contract of employment.

Most employees, subject to certain conditions, are entitled to certain payments during the statutory notice period.

Employees can waive their right to notice or to payment in lieu of notice; employers can also waive their right to notice. Either party can terminate the contract of employment without notice if the conduct of the other justifies it.

Further details about notice provisions can be found in the document Rights to notice and reasons for dismissal (PL707).

Unfair dismissal

Employees have the right not to be unfairly dismissed. In most circumstances they must have at least one year's continuous service before they have this right. However, there is no length of service requirement in relation to a number of 'automatically unfair grounds' (see below). Also, the requirement is reduced to one month for employees claiming to have been dismissed on medical grounds as a consequence of certain health and safety requirements that should have led to suspension with pay rather than to dismissal.

A complaint of unfair dismissal must be received by an employment tribunal within three months of the effective date of termination of the employment (usually the date of leaving the job) unless the tribunal considers this was not reasonably practicable. However, from 1 October 2004 the time limit for submitting some tribunal claims will also be extended in certain circumstances to allow statutory minimum dismissal, disciplinary and grievance procedures to be followed.

If both the employer and employee agree, instead of going to an employment tribunal, the case may be heard by an arbitrator under the Acas Arbitration Scheme. For further details, see section The Acas Arbitration Scheme.

When hearing the complaint, a tribunal will first need to establish that a dismissal has taken place. Once dismissal is established, it is normally for the employer to show that it was for a legitimate reason (see Fair dismissal). Having established the reason for dismissal, the tribunal must then in most cases decide whether in the circumstances the employer acted reasonably in treating that reason as a sufficient one for dismissal. The circumstances taken into account include the size and administrative resources of the undertaking; but these considerations do not apply if the tribunal finds that the dismissal was on one of the grounds classed as automatically unfair, because it was for one of the following reasons:

  • pregnancy or any reason connected with maternity;
  • taking, or seeking to take, parental leave, paternity leave (birth and adoption), adoption leave or time off for dependants;
  • failure to return from maternity or adoption leave because the employer did not give or gave inadequate notice of when the leave period should end;
  • matters connected to/making a request under the flexible working provisions of the Employment Rights Act 1996 as amended by the Employment Act 2002; 
  • taking certain specified types of health and safety action;
  • refusing or proposing to refuse to do shop or betting work on a Sunday;
  • grounds related to rights under the Working Time Regulations 1998;
  • performing or proposing to perform any duties relevant to an employee's role as an employee occupational pension scheme trustee or as a director of a trustee company;
  • grounds related to acting as a representative for consultation about redundancy or business transfer, or as a candidate to be a representative of this kind, or taking part in the election of such a representative;
  • making a protected disclosure within the meaning of the Public Interest Disclosure Act 1998;
  • asserting a statutory employment right;
  • grounds related to the national minimum wage;
  • qualifying for working tax credit or seeking to enforce a right to it (or because the employer was prosecuted or fined as a result of such action);
  • trade union membership or activities, or non-membership of a trade union;
  • taking lawfully organised official industrial action lasting eight weeks or less (or more than eight weeks, in certain circumstances);
  • performing or proposing to perform any duties relating to an employee's role as a workforce representative or as a candidate to be such a representative for the purposes of the Transnational Information and Consultation of Employees Regulations 1999, or for taking, proposing to take or failing to take certain actions in connection with these regulations;
  • grounds related to trade union recognition procedures;
  • exercising or seeking to exercise the right to be accompanied at a disciplinary or grievance hearing, or to accompany a fellow worker;
  • grounds related to the Part-time Workers (Prevention of Less Favourable Treatment) Regulations 2000;
  • grounds related to the Fixed-term Employees (Prevention of Less Favourable Treatment) Regulations 2002;
  • a failure to follow the statutory dismissal procedure;
  • grounds related to the European Public Limited-Liability Company Regulations 2004;
  • from 6 April 2005, grounds related to the Information and Consultation of Employees Regulations 2004 for undertakings with 150 employees (from 6 April 2007 for undertakings with 100 employees and from 6 April 2008 for undertakings with 50 employees);
  • from 6 April 2005, grounds related to jury service.

If the employment tribunal finds the dismissal was unfair, it will order one of three possible remedies: reinstatement, re-engagement or compensation. Orders for reinstatement or re-engagement normally include an award of compensation for the loss of earnings.

Further details of the law on unfair dismissal and the remedies available, including how awards are calculated, can be found in the documents Unfairly dismissed? (PL712) and Fair and unfair dismissal (PL714).

Fair dismissal

Dismissal is normally fair only if the employer can show that it is for one of the following reasons:

  • a reason related to the employee's conduct;
  • a reason related to the employee's capability or qualifications for the job;
  • because the employee was redundant;
  • because a statutory duty or restriction prohibited the employment being continued;
  • some other substantial reason of a kind which justifies the dismissal.

Where the employer shows that the reason was one of these, the tribunal has to consider whether the employer acted reasonably in the circumstances by treating this reason as sufficient to dismiss the employee. Among the circumstances it takes into account are the size and administrative resources of the employer's undertaking.

It will also take account of whether the employer followed appropriate disciplinary procedures. From 1 October 2004, when statutory dismissal and disciplinary procedures come into force1, where those procedures apply and are not treated as having been complied with, a dismissal will be unfair if an employee is dismissed without the procedure having been followed.

From the same date, however, if an employer fails to follow a disciplinary procedure which goes beyond the statutory procedure, that failure will not by itself make the dismissal an unfair one - provided that properly following the procedure would have made no difference to the decision to dismiss, and that the dismissal was fair in all other respects.

Dismissal on the grounds of redundancy is unfair if the employee is selected for redundancy (when others in similar circumstances are not selected) for any of the reasons listed in the Unfair dismissal section as 'automatically' unfair (except dismissals in connection with the right to be accompanied). It may also be unfair for some other reason, such as the employer failing to give adequate warning of the redundancy, or to consider the employee for alternative employment.

____________________________________________________

1) The statutory procedures will apply when an employer first contemplates dismissal or disciplinary action on or after 1 October 2004, but not when a procedure of the employer's own has been started before that date.

 

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Last updated 22 June 2005