Commercial Law Services

Commercial property

GET YOUR PROCEDURES CORRECT - OR PAY UP!

The law on unfair dismissal changed substantially in October 2004. Despite this now being over two years ago, there are still a large number of employers who remain oblivious to the changes, and oblivious to the costs they are likely to incur by ignoring them.

The statutory procedures state (broadly speaking) that before an employer can fairly dismiss an employee, they must first call them to a meeting in writing setting out the reasons they are contemplating dismissal (for example by giving full details of any alleged misconduct or unsatisfactory performance, including evidence such as witness statements or copies of appraisals). They must then hold the meeting with the employee, and if the decision following that meeting is to dismiss the employee, then they must be given a right of appeal.

A failure to comply with these statutory minimum requirements will render any dismissal automatically unfair, regardless of the other facts of the case and the merits of the decision. It also means that a tribunal will increase any compensation awarded to the employee by between 10% and 50%. There are lots of employers who continue to seek advice after they have dismissed an employee. By that stage any damage has often been done, and the result is often an expensive pay-out. If you're considering the dismissal of any employee, then ensure that you take advice before doing anything.