Global HR Glossary

What is Unfair Dismissal? 

Unfair dismissal occurs when an employer terminates an employee's contract in a manner that breaches employment laws, contractual terms, or established company policies. It typically involves dismissal without a legitimate cause, such as redundancy, conduct, capability, or another substantial reason, or failure to follow due process in the termination procedure.

Key Considerations for Fair Dismissal

• Legitimate Reasons: Valid reasons for dismissal include misconduct, lack of capability, redundancy, or statutory illegality.
• Due Process: Employers must conduct a fair and thorough investigation, provide the employee with an opportunity to respond, and offer the right to appeal against the dismissal decision.
• Consistency: Treat all employees similarly in similar circumstances to avoid claims of unfair treatment.

Consequences of Unfair Dismissal

• Legal Actions: Employees may bring claims against their employers, potentially resulting in reinstatement, compensation, or other remedies.
• Reputational Damage: Unfair dismissal can harm an employer's reputation, affecting their ability to attract and retain talent.
• Employee Morale: Unfair practices can lower morale and productivity among remaining staff.

Employers can mitigate risks by training managers on fair disciplinary procedures, maintaining clear disciplinary policies, and documenting all steps taken during the termination process.