Dismissal occurs when an employer terminates an employee’s contract. The action can be either fair or unfair depending on the circumstances and adherence to legal procedures laid out in the contract and work environment of a specific country. In the UK, the Employment Rights Act 1996 provides guidelines distinguishing fair and unfair dismissals as it provides all employment particulars, including conditions for employment and disciplinary procedures (legislation.gov.UK). Based on the provisions of this legislation, fair dismissal occurs when an employer has a valid reason and follows due process. There are various legally acceptable reasons for dismissing an employee, and they include misconduct, capability in terms of performance or health, redundancy, statutory restriction, such as the lack of work permits, or another substantial reason affecting an organisation like in the case of restructuring. For example, if an employee repeatedly breaches workplace policies despite warnings, dismissal for misconduct may be justified. Fair dismissal can also occur in the case of redundancy due to business closure or reduced demand for certain services. In this case, employers must follow redundancy consultation procedures, offer alternatives where possible, and provide redundancy pay if the employee is eligible. However, employers are obligated to provide evidence and allow the employee a chance to respond to any accusations or claims.
Conversely, unfair dismissal occurs when the termination lacks a valid reason or does not follow due process. This includes dismissals motivated by discrimination based on gender, race, or disability, or retaliation with unfair or unethical practices through whistleblowing. For instance, in Orr v Milton Keynes Council (2011) where the claimant, a youth worker, had been dismissed for gross misconduct, the UK Employment Tribunal ruled in favour of an employee dismissed without proper investigation, highlighting procedural flaws.
The burden of proof often lies with the employer in unfair dismissal claims. Employees can challenge unfair dismissal through the Employment Tribunal, which may award compensation or reinstatement if the claim is upheld. This means that employers are required to conduct thorough investigations and avoid malice when dismissing employees on the basis of any claims they consider valid in such cases. Therefore, employers should ensure they mitigate the risk of unfair dismissal claims by prioritising clear communication, maintaining detailed records of employee behaviour, and adhering to disciplinary and grievance procedures outlined in the Acas Code of Practice.