Employment Contracts: Everything You Need To Know

As businesses gradually reopen and employees return to work, most business owners may be responsible for making changes to their employees’ contracts. Here is everything you need to know about employment contracts to make the process legal and practical.

What is an employment contract?

An employment contract is a legal relationship between the employer and the employee. It contains the terms of employment in writing, and both parties are bound legally to the terms. That’s why it’s crucial to check a person’s employment status before creating a contract. 

What must be written in an employment contract?

When writing employment contracts, they should contain a summary of the main terms of the employment, including information such as pay, working hours, responsibilities, etc.

Changing an employment contract

As an employer, you can make changes to your employee’s contract under specific circumstances. Such as:

  • If the agreement contains a flexibility clause that allows you to make changes 
  • If your employee agrees to those changes following the consultation
  • If your employee’s representative also consents to the changes

However, an employer also can enforce a new contract, but this should always be a last resort after exhausting other options.

Termination of employment contract

An employer or employee can terminate an employment contract either through employee resignation or the employer dismissing the employee. 

However, any dismissal should be on fair and legal grounds without infringing on the employee’s rights. It should also come with prior notice and reasons, and the employer should be prepared to provide a job reference when needed and final pay. 

Zero-hours contract

You can use a zero-hours contract for jobs on an “as-and-when” basis or for working hours that aren’t constant. With this, you can also create a bit more work flexibility. With a zero-hours contract:

  • You don’t need to give your employee any minimum working hours. 
  • The employee is at liberty to also reject any work offered.

Agency workers

If you’re an employee working through an agency, then your employment contract lies with the agency. That means your hiring agency has the responsibility to direct your work. Your agency should also provide you with details about the type of contract you will receive, how much pay is due to you, as well as the terms and conditions surrounding your agreement. 

An employment agency goes by other names, including a recruitment agency, a staffing company, a temporary work agency, and an employment business. 

Non-disclosure agreements

An employer can prevent an employee from sharing company-related information through a Non-disclosure Agreement (NDA). An NDA is sometimes referred to as a confidentiality clause and could come as part of the employee’s contract or in a separate stand-alone document. 

However, an NDA cannot stop an employer from reporting a crime to the police or whistleblowing. 

 

If you need further help with writing employment contracts, get in touch with our professional team. At Harwood HR Solutions, we will write tailor-made business employment contracts for your staff.

 

If you need HR support from a company that understands the needs of your business, contact us today. At Harwood HR we can support your business, help you to grow and promote your employees’ talents. Our UK-based team offers a range of HR support services and advice for SME businesses, including outsourced HR support.

How to Dismiss an Employee on Probation

Terminate a Probationary Employee

In most cases, when companies hire a new employee, the employee is subject to a probationary period of 1-6 months. This period is to help both the employee and employer ensure that they’re a good match for each other. 

The employer gets to assess the employee’s performance and fit for the company, while the employee puts in the effort required to help them decide if they’re happy with the job. This period also gives the lacking employee the chance to improve their performance in their assigned job role. 

Unfortunately, some employees are unable to cut it during this period. Most of the time, their inability to perform is usually because the employee lacks the requisite skill set that would have kept them in that role. But there are also other reasons such as tardiness or a lack of punctuality, inability to embrace the company culture, gross misconduct, prolonged absence at work, and other disagreeable tendencies. 

Managers should address any concerns that come to light as soon as practicable (depending on the severity of the concerns), this should be done via a Mid-Probation Review Meeting. This allows the employee the opportunity to change/improve.

When there are no improvements, or there has been a case of gross misconduct and you decide to terminate employment, it’s important that you give them a week’s notice (unless a different period is stipulated in the contract).

During the probation period, dismissal should follow the proper procedure to avoid automatic unfair dismissal claims. It’s crucial to consider protected characteristics and conduct probationary review meetings to address poor performance in line with employment law. Ensuring the employee’s contract is respected, inviting them with the statutory minimum notice period, and avoiding unlawful discrimination are key aspects to handle such situations effectively.

As an employer, if you’re worried about a possible “unfair dismissal claim” from the employee, don’t. Unless the employee has been on probation for over 2 years (not likely or recommended), then employees are unable to file an unfair dismissal case due to their length of service. In order to dismiss the employee, you should complete the following:

  • Gather relevant information

Start by collecting information and data from managers and supervisors that the employee has worked/is working with. More specifically, see if there are exact dates and times when the employee breached one or more of their probationary terms or evidence of where the employee has not performed to required standards. It is important to have this information so that you can clearly explain these issues to the employee.

  • Invite the employee to a probation review meeting

After taking the first two steps, it’s time to meet with the employee. Write to the employee to invite them to a face-to-face meeting (or a zoom meeting if they’re a remote employee and can’t come into the office). The meeting should be arranged just before the date at which the probation is due to end rather than after. 

Also mention in the mail or letter, that a potential outcome of this meeting may be dismissal from the company because they have not met the required standards of performance or whatever your reasons are. Inform them that they have the right to be accompanied at the meeting with a representative. This could be a union rep or a work colleague.

  • Conduct the probation review meeting

At the meeting, discuss the employees’ performance to date; confirm where they have failed to meet the required standards and allow them to respond. 

  • Make a decision

Sometimes, people have a solid reason for breaching the terms of the contract i.e. if the employee was pregnant or unavoidably ill and so be prepared to take into account any mitigating circumstances. Based on their response, decide if you can perhaps, extend the probation period as opposed to dismissal.  If, however, you decide not to continue with employment, confirm this to them and issue them with a letter which summarises your decision and reasons for this. (You do not need to give the employee the right to appeal).

  • Termination letter

This letter will contain three parts. The first is that the employee didn’t meet company expectations or standards during the probation period, and is, therefore, to be dismissed. Second, specifically mention the reasons for termination. Thirdly, clearly state when they’re expected return all company property in their possession, as well as, and when all outstanding payments that they’re being owed will be paid. 

 

Admittedly, this can be difficult. So, if you need a pro to handle this, contact us today, we are happy to help. 

If you need HR support from a company that understands the needs of your business, contact us today. At Harwood HR we can support your business, help you to grow and promote your employees’ talents. Our UK-based team offers a range of HR support services and advice for SME businesses, including outsourced HR support.

 

What can HR Help With?

If you are running a business, you will need to ensure that you efficiently manage your employees.  Your employees can be the important factor that sets you apart from your competition or the factor that lets your business down and generates a bad reputation.  They can be super self-efficient and never cause you an issue or they can suck up your time with managing problems and negativity.  Ultimately most business owners would avoid employing people if they didn’t have to however the reality is, if you want to expand and develop your business, they are critical. 

How your employees perform can be down to several factors.  Obviously if you are a great boss this helps however if you are too lenient it can be counterproductive.  If you are too hard, ditto.  However, being a great boss is just one factor.

Great Human Resources support can join the dots and help to maintain a healthy balance and here are some examples as to how it can be achieved.

Effective and relevant policies and procedures.

Often overlooked, policies and procedures that are specific and highly relevant to the organisation are essential to ensure that the foundations are in place for a productive employer / employee relationship.  Template docs may be ok in some instances however for most business this is a mistake and quite often don’t provide the base explicit terms that are really required.

Recruitment

Ensuring you have recruited the right person is a bit of a lottery and to a degree always will be however there are ways to reduce the risk and improve your selection so that you don’t take on a potential internal “terrorist” or somebody who is unqualified for the job.  Increasing your chances of success saves you considerable time, money and stress!

Managing Performance

Proactively managing performance means that you get on the front foot to ensure that your employees are performing to a required standard.  It should be a corrective process and not punitive.  Nobody wants to dismiss an individual as this means that again time and money are wasted as well as the potential for poor customer experiences etc…. A good HR team will keep ahead of the game and ensure that disciplinaries are a last resort.  This approach also ensures that employees are less likely to fall into bad habits.

Dismissing employees

Despite all efforts sometimes employees place themselves in unsolvable situations.  When dismissing an employee it is critical to ensure that the correct process has been followed.  This can be a minefield and a basic error in not following a statutory or contractual process can result in the Company paying compensation even if the reason for dismissal was fair.  Not dismissing problem employees can also start to effective your star performers! “why should I bother if the Company can’t be bothered to manage that guy?”

Training and Development

It is essential that you continue to train and develop your employees.  This is not only important in order to retain your top employees, it is also critical for ensuring the company stays up to date and relevant to its customers and future employees.  

Data Management

HR data is covered by GDPR regulation, and it is imperative that this is fully understood and complied with.

Pay and Benefits

Paying appropriate salaries and having effective compensation plans can transform a Company’s performance.  Quite often, if designed and implemented correctly they are self-funding and only ever result in improved business performance.  Applied poorly and you can destroy your profit margins!  

How Does HR Support Employees?

In terms of being there as a support for the employees themselves, HR achieve this in a number of valuable ways, including:

  • Providing and encouraging career growth.
  • Offering the right education, where and when necessary.
  • Training managers and supporting them in what they do.
  • Supporting the health and wellness of all employees.
  • Helping to support and build the culture and values of the organisation, for the benefit of the employees.

See our video for more information on what HR can help with https://www.youtube.com/watch?v=ogigvJ86ALI

 

If you need HR support from a company that understands the needs of your business, contact us today. At Harwood HR we can support your business, help you to grow and promote your employees’ talents. Our UK-based team offers a range of HR support services and advice for SME businesses, including outsourced HR support.

 

Can you just sack someone?

Firing an employee is a stressful process for both the employer and employee. For the employer, contrary to popular belief, it is not the desired outcome as the Company would prefer to have a performing and committed employee.  It is expensive and time consuming to recruit and train a new employee therefore sacking them is a last resort!  For the employee, it clearly isn’t their ideal outcome either.

For this reason, many employers tend to sack individuals too late.  As a result, they have been allowed to create significant damage to the business, unsettle other employees and have potentially been lulled into a false sense of security of believing that they are un-sackable.

Conversely Companies that have had a bad experience can sometimes sack too quickly as they are nervous that an individual has shown a sign that they could be just like that other guy they had to dismiss!

What does sacking mean?

The legal word for a sacking is a dismissal. A dismissal is when your employer terminates your employment; this can happen for various, fair, reasons. An unfair dismissal, on the other hand, is being sacked without a valid reason. A constructive dismissal is where your employer might have given you no option other than to resign, forcing you to leave work unjustly. Failure to follow the correct dismissal procedure can also be classified as an unfair dismissal.

Reasons that can lead to a dismissal

There are various fair reasons to sack an employee, for example:

  • Capability or Performance (ill health or poor performance).
  • Conduct / Misconduct
  • Redundancy.
  • Breach of a statutory restriction
  • Some other substantial reason

Unfair dismissal is when your employer breaches your contract and dismisses you. It can be either automatically unfair or wrongful. An automatically unfair dismissal can be due to:

  • Maternity leave
  • Membership with a particular trade union
  • Whistleblowing
  • Discrimination

 

Probationary dismissal

During your probation period (length will be detailed in the employment contract), you can be dismissed for poor work performance, bad conduct or and other reason as long as is not discriminatory.  Within the probation period there is no requirement to follow a procedure to dismiss, provide a warning or even provide notice however it is good practice to do so.

Written warnings

Employees who are outside of their probation period are entitled to be given a reasonable amount of time to correct any performance issues and are also given a fair opportunity to explain why their performance is below par and to request reasonable support to improve.  For that reason, once the probation period has passed, companies must follow a process for managing poor performance and issue levels of warnings prior dismissing an employee.  A Company can move straight to dismissal, following a thorough investigation and subsequent disciplinary hearing, when an employee has been found guilty of an act of gross misconduct.

Under 2 years’ service?

If the employee has less than 2 years service they cannot pursue an unfair dismissal claim at an employment tribunal.  They can however raise a claim if it can be suggested that the dismissal was for a reason that is discriminatory, for whistleblowing or for being a member of a trade union.  A claim for wrongful dismissal can also be raised.

Considerations

In summary, you cannot just sack someone.  You need to have grounds for dismissal that are fair.  It is far safer for a company to dismiss within a probation period as long as it is for genuine performance or conduct concerns.  With under two years’ service an employee has less rights to raise a claim however a company must ensure that the dismissal is for fair reasons and it is best advised that a formal process is followed.  For all dismissals, companies are best advised to seek professional advice and guidance.  In a lot of cases companies have been found guilty of not following appropriate process rather than the reasons for dismissal being unfair.

 

If you need HR support from a company that understands the needs of your business, contact us today. At Harwood HR we can support your business, help you to grow and promote your employees’ talents. Our UK-based team offers a range of HR support services and advice for SME businesses, including outsourced HR support.

 

Why Outsourced HR?

All businesses irrespective of size have to deal with a range of employee issues.  As a business owner, you cannot be great at everything and for that reason it is sensible to outsource areas of your business to qualified professionals.   Businesses already accept that outsourcing their bookkeeping / accounts and payroll is a sensible decision and, in many businesses, marketing also makes sense, so why not HR?

Many business owners will say that they have never had an issue, or my employees are like friends and that may be true however, you are extremely lucky if you navigate your way through without an issue biting you on the backside!  When that happens, you wished that you had put in place relevant contracts, policies, procedures and you had, over a period of time, created a culture of respecting and following those policies and procedures.  If you wait for the issue to occur it is often too late.  If you proactively work towards a professional working environment (even if they are your friends or family members) then the large majority of issues are prevented.

It is the proactive prevention of employee issues that makes good HR support.  In many ways great HR support goes totally unrecognised as it appears that “you never have an issue” whereas in truth there are a whole load of proactive discussions (formal and informal) and carefully composed letters and emails that have occurred to ensure that the issue did not escalate.  Less competent HR support acts merely as a firefighter, continually addressing issues that have blown up and preparing responses to tribunal claims.  As a business owner if you only interact with HR support when it goes wrong then you are merely putting a band aid on a wound that requires stitches!

In small to medium size businesses your budget may not allow you to recruit a fully functioning HR team or even a HR professional with enough breadth of experience to fully support the business.   Specialist areas such as employee relations, performance management, managing employee sickness and complicated welfare issues are difficult to resolve without the expertise and knowledge to do so.  In many cases, even less complicated issues that have been allowed to escalate can result in the Company finding themselves having to refer cases externally to lawyers and this incurs high advice costs and if left to this stage almost certainly incurs costs to resolve the situation with the employee. 

Outsourced HR support offers a number of advantages over introducing an in-house function or directly employing a single HR head.

  • Managing Litigation Risk: HR support will ensure that your backside is covered when it comes to compliance.  Whether you like it or not, the law dictates that you provide written employment terms and at least follow best practice statutory guidelines.  If you don’t do this then you will automatically lose any employment claim that is brought against your company.  You cannot be the expert in everything!  HR professionals never profess to be a great plumber / accountant or marketeer! 
  • Makes you and your business more efficient: As a business owner it is common to end up dealing with people problems rather than working on developing and improving your business.  Good proactive HR can free you up from a whole load of negative issues to allow you to do what you are good at.  Good level support also makes you look like a highly effective leader of people and improves your reputation as an employer and overall company!
  • Employee development: A professional working environment creates a culture where employees thrive and go the extra mile.  Can you imagine a business full of people that almost care as much as you do!
  • Cost savings: Ultimately outsourcing HR is way less expensive than employing a qualified HR professional and will also save you significant amounts of money through early resolution of issues, reducing legal fees when it goes wrong, reducing staff turnover, recruitment costs etc….

There are different ways to approach outsourced HR support.

There are hundreds of providers out there and getting the correct one for you is critical.   We have produced a guide to buying outsourced HR Support that you can access here https://online.fliphtml5.com/ywlrr/isfq/

To summarise, some of the larger providers such as Croner, Peninsula Citation will provide a cost-effective service that provides you with access to a handy portal and template documents.  A helpline is available should you need it.   Our advice is that this solution can work well if you have an individual who is competent with HR matters in your business as they can utilise the tools and may know how to adapt template letters and analyse and use the generic advice given on the portal or from the contact centre operative.  

There are also a number of lone working HR consultants.  They can often provide a very personal service however they can sometimes lack the range of experience and expertise to be able to fully advise on all matters.  Being a single point, they sometimes also have problems offering support 365 days of the year (if required) or being flexible enough to attend site should that be required.

At Harwood HR Solutions we adapt our outsourcing model to suit your specific requirements and charge you no more than you would pay for a typical generic template-based model!   You will get a dedicated senior level HR professional who has legal support.  Our wider team is also available for specific projects and challenges ensuring consistent availability and a highly personalised service. Our support is made available to you by telephone, email, text and even in person on-site should you need us there. 

View this blog being discussed here https://youtu.be/cef2PsoDRoI

 

If you need HR support from a company that understands the needs of your business, contact us today. At Harwood HR we can support your business, help you to grow and promote your employees’ talents. Our UK-based team offers a range of HR support services and advice for SME businesses, including outsourced HR support.

 

Let’s talk Menopause!

Hello, let’s talk menopause. Not something that I’m overly comfortable talking about as a man which is half the problem!

A lot of women aren’t happy talking about it either however i’m going to talk about it.  Davina McCall recently brought out a program on Channel 4, if you haven’t watched it watch it.   If you’re a man and haven’t watched it, definitely watch it!  If you’re a man in a senior position or in an influential position in business, then definitely watch it as it’s a huge education!

I’m not ashamed to admit it, I’ve been very naive and probably dismissive of the menopause.  This is partly due to the subject matter not being a comfortable topic of conversation, however this isn’t good enough and I need to be comfortable with it and so do all business leaders.

In today’s business world we run a whole range of initiatives to  encourage diversity, to understanding different beliefs and cultures etc..  And why do we do that?  Well, because we want a more diverse workforce, which then makes it a more motivated workforce and more productive workforce, so that we actually become a more productive business and ultimately make more money!

The menopause is exactly the same sort of historical subject that we have been afraid to address but it is impacting women and ultimately our businesses every day.  If we ignore it and believe it is not happening,

then that’s just ridiculous, because 51% of the UK population of women and all women go through it and more often than not, women go through it on their own and without support or any consideration or from their employers, colleagues but also sometimes at home.

So, for all those guys that were naive about menopause before.  Like me, here are a few facts,

  • The menopause is caused by changes in hormone levels that take place when women get older.
  • Symptoms include hot flushes, mood changes, memory problems, fatigue/insomnia, brain fog, depression and anxiety!
  • The length of time it takes for women to go through the menopause varies between individuals, however, staggeringly the average is four years!
  • To help with symptoms treatment is available if you want it. The key is identifying, you are going through the menopause, and then asking for that, that support which again, if you watch the Davina’s program, it’s not straightforward.  However, it’s there if it’s required.
  • Healthy eating, regular exercise, along with simple behavioural changes can help with some of the symptoms. How often do we talk about that type of behaviour helping people, especially with mental health and well-being challenges?
  • Talking helps, talking to friends, family and professionals helps people to get through. Just having people that can understand and show empathy and have some support is incredibly important.  But also, so is having a very understanding considerate workplace, that acknowledges the situation, has policies, and procedures in place and is supportive is absolutely critical.  As we sit here today, that simply isn’t the case in most businesses.

So, as business owners, we need to wake up smell the coffee and realise that this is a fact of life.  It happens to all women including your daughters, your wife, sister etc… and I am sure that you would expect the right support for them.   So let’s make changes and support, women who are going through the menopause.

Also, although the menopause is not considered a disability under the Equality Act it is important to remember that it can lead to the development of other issues that are (such as depression etc).

Therefore, this is a reminder that companies have a duty to make reasonable adjustments and may be at risk if they do not support women going through this – adjustments are wide ranging so talk to Harwood HR for support, Policies and guides for helping your business!

Thank you for listening again and let’s wake up and make a difference! Thank you, Davina, and make sure you watch the channel 4 documentary, It’s very insightful!

See our video for more information on the menopause https://www.youtube.com/watch?v=D7al1py3-2g&t=43s

How Long Does a Written Warning Last?

Understand the duration of a written warning

We all dream of working in a harmonious and trouble-free environment however this is regrettably not the real world! Things can and do go wrong. People are people and therefore are prone to mistakes, misjudgement and out and out divisive behaviour.

As business leaders we need to address matters when things go wrong. Ignoring the issue simply results in an escalation over time, so addressing matters at the point that they occur is critical. For minor issues a simple discussion with some corrective direction may suffice however when things are more serious you may need to follow disciplinary procedures.

Written Warnings

Business’ need to ensure that they have appropriate policies and procedures in place for such eventuality. Employees can rely on basic statutory procedures to be followed however it is far better for a business to clearly define their own policies and procedures.

Remember, the disciplinary process is designed to be corrective and not punitive. In other words, it is designed to correct poor performance or bad conduct to prevent the need to terminate an individual’s performance. Of course, sometimes an individual will commit an act so bad that they are ultimately dismissed for gross misconduct however thankfully these scenarios are still rare.

For all other matters a company will need to follow a series of levels of warnings. Starting with a discussion to hopefully correct early signs of poor conduct or performance however if this doesn’t resolve the issue then the individual may move on to be issued a 1st written warning then a final written warning before ultimately being dismissed (procedurally).

How Long Written Warnings Last

The amount of time a warning will stay on file therefore depends on the severity of the action. Typically, a warning may last on file for 6 months. A final written warning may remain on file for 12 months. In extreme cases you may have a warning that stays on file for an indefinite period. The periods of time that the warning stays on file for must either be laid out in the confirmation of disciplinary action letter or clearly laid out in the Companies policies and procedures or in an Ideal world, both!

Bottom Line

In order to safely navigate your way through any disciplinary process it is advisable to seek HR Support. Remember that addressing the issue in good time and seeing the process as being corrective rather than a form of punishment is key to ensuring a fair process.

Warnings may appear harsh however they are there for the good of both the business and the individual in order to attempt to prevent a regrettable termination. Companies need to decide how long a warning will reasonably stay on file on this basis.

View our video for more insight into written warnings https://youtu.be/zGKDGHmSW1g

 

If you need HR support from a company that understands the needs of your business, contact us today. At Harwood HR we can support your business, help you to grow and promote your employees’ talents. Our UK-based team offers a range of HR support services and advice for SME businesses, including outsourced HR support.

Return to the office, no office or something in between?

We’re delighted to be featured in the Business Owners Checklist in the Telegraph. Find out what we said below about staff returning back to the office or not after COVID19.

Return to the office, no office or something in between? The forcing of home working arrangements has opened minds to a potential longer-term change in strategy. The positives are obvious to point out however, there are more factors to consider.

Employees on the whole are contracted to work from an office, so may not accept permanent homeworking. Are you prepared to open consultation with your employees?

Homeworking arrangements also need to be practical and compliant with health and safety requirements, with secure IT solutions and policies in place.

Have you considered how you will fairly manage the performance of your remote employees? Your staff could be more or less productive working from home, you need to think about how to maintain the productivity over time.

You will of course need to think about the employees that want to return to the office. But also those that have been suffering from anxiety who are unsure how they will cope with coming back. What functions need to be in the office versus working from home? Do you reward homeworkers differently?

Ultimately, there’s a lot to consider and plan, starting with gaining senior level consensus on a preferred position that is right for the business operation, your customers and your employees.

How you deliver the chosen position needs careful planning and a realisation that to navigate through phase one of the return to normal there may need to be compromise.

If you need help with this transition or require general HR support for your business, please contact Harwood HR Solutions for a free consultation.

On What Grounds Can You Dismiss an Employee?

Employees are assets to any company, but as a business owner,  you are likely to  be faced with a reason to consider dismissing one or more of your team.  As you would expect, legal protection is in place for employees for good reason, however,  it is not true to state  “it is impossible to dismiss somebody” or “the law is stacked against the employer”.  The statutory requirements simply dictate that a company follows a process that ensures that the dismissal is based on reasonable grounds and the individual is provided with an opportunity to present their case for the defence.   Therefore to avoid employment tribunals, and unnecessary legal fees and damage to reputation Companies are best advised to seek guidance from HR professionals and to follow the appropriate process.   The following are reasons for dismissing an employee

Conduct or Behaviour

People do make errors of judgement and people misbehave.  Both of these can provide good reason to dismiss an employee.  If an individual’s behaviour is divisive and disruptive then after following a process of formal warnings the individual may be dismissed.  An individual may also commit  an act of misconduct i.e. operated outside of policy or made a work error due to being negligent etc.. and again following a process of issuing warnings, if the misconduct continued then you could reasonably be dismissed.  Then there are acts of Gross Misconduct.  These are acts that are so serious that you can dismiss without having provided previous warnings.  Examples of Gross Misconduct offences are theft, racial abuse, physical aggression etc.  Please be aware however that you still need to follow a process ensuring that the individual accused of the act has had an opportunity to provide any mitigating circumstances.  There is no such thing as instant dismissal!!

Capability

Dismissal based on an employee’s inability to perform competently can be for two reasons; poor performance and ill health. An employee is incapable of performing in their job when struggling with long-term or persistent sickness. In this case, you need to find ways to support them, give time for recovery, and consider other options before dismissal.

In the case of poor performance where an employee doesn’t meet satisfactory standards within their job, HR support should take them through the disciplinary process before dismissal.  Companies are advised to have clear policies in place for handling capability issues.

Redundancy

Redundancy dismissals occur when am organisation no longer has the need for a specific role.  This may happen due to Company closure, department closure, company reorganisation / restructure or location change.  If you happen to be the job holder of that role then you are placed at serious risk of redundancy and are taken through a consultation process.  Redundancy is a specialist area and should consult with a HR professional before commencing any discussions.  There are many different legislative requirements to consider based on the individual circumstances.

Breach of a statutory restriction

This, although rare, applies when keeping an employee means breaking the law. For instance, when their working permit expires and they continue to work in your company. However, you’re still required to follow the due disciplinary and formal dismissal procedure.

Some other substantial reason

Every dismissal that doesn’t fit the other categories falls here. Some examples include:

  • Organisational restructure that isn’t redundancy.
  • Conflict of interest
  • Personality clashes
  • Temporary employee dismissal after their contract expires.
  • Breakdown in trust and confidence.

Dismissal based on some other substantial reason requires you to have a solid case as a tribunal case would result in thorough testing of your reasoning and approach.

Types of Dismissal

These include:

  • Fair dismissal: When an employer’s reasons for dismissal are sound and admissible, redundancy being among them. Other reasons also include employee qualifications, capability, or conduct.
  • Unfair dismissal: This involves situations where there aren’t sufficient grounds for dismissal, or the HR services fail to follow company policies regarding the termination.
  • Constructive dismissal: Involves scenarios where an employee leaves their job because they feel pushed out due to the treatment they receive from the employer. Despite the word ‘constructive’ this is not good and will most likely result in an employment tribunal claim.
  • Wrongful dismissal: Although it could easily be mistaken for unfair dismissal, it involves a breach of an employee’s contract by the HR support during dismissal.

Summary

Employee dismissals are sensitive and need to be handled carefully by HR support. Ensure you have reasonable grounds like redundancy, capability, misconduct, breach of statutory restriction, or other substantial reasons to terminate employee contracts. Seek our help for HR services to exercise fairness in employee dismissal by following the Acas Code of Practice that defines your responsibilities.

March 2021 Updates

For the latest on furlough, changes to national minimum/national living wage and increases to statutory payments, read the March updates here.

March 2021 Updates

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