Guide 5 min read
1. Redundancy
While redundancy is a potentially fair reason for dismissal, there must be a genuine redundancy situation, and the employer must follow a fair process in carrying out the dismissal.
Should an employee claim unfair dismissal there is no presumption that the employee’s dismissal was by reason of redundancy and the employer has the burden of proving the redundancy.
If you have a genuine redundancy situation you should get more information from the ACAS website Manage Staff Redundancies.
There is no set timeline for carrying out a redundancy process however this must be reasonable, making sure affected employees have time to hear the reasons for the redundancy situation, have a fellow colleagues or trade union representative available to attend consultations meetings, have time to consider what mitigating steps the organisation could take to prevent redundancy situation.
Your employees can also get support from ACAS Your Rights During Redundancy this can provide support and guidance for employees who are affected.
2. Dismissal
In the UK (including Scotland) fair dismissal is governed by the Employment Right Act 1996, in the Act there are five potentially fair reasons for dismissal explored below.
To ensure a dismissal is legally fair, employers must demonstrate both a valid reason for dismissal and adherence to a fair procedure. Failure to follow these requirements can result in claims for unfair dismissal.
1. Potentially Fair Reasons for Dismissal
A dismissal must fall into one of the following categories:
- Conduct – Misbehaviour or breaches of company rules.
- Capability/performance – Inability to meet required standards despite support.
- Redundancy – Genuine reduction in workforce needs.
- Contravention of a Statutory Duty – Employee cannot legally perform the role.
- Some other substantial reason (SOSR) – A significant reason not covered by the above.
2. Fair procedure
Employers should:
- Conduct a reasonable investigation into the matter.
- Notify the employee of the allegations.
- Allow the employee to respond in a meeting.
- Provide the right to appeal any decision.
3. Performance management considerations
- Apply performance standards consistently.
- Avoid dismissing solely for “loss of trust and confidence” without clear evidence.
- Document feedback, support, and performance improvement plans.
4. Retirement and age considerations
- Compulsory retirement ages are no longer generally permitted.
- Any dismissal related to retirement must be objectively justified under the Equality Act 2010.
- Employers must avoid age discrimination and ensure retirement policies comply with current legislation.
5. Key points
- Proper documentation of procedures is essential.
- Employees must be treated fairly and consistently.
- Failure to follow these steps may lead to claims of unfair dismissal at an employment tribunal.
It is vital that there is proper documentation and “evidence” to support any reason for dismissal.
More information and support can be found from ACAS: