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If you are dismissed from your job

This article summarises:

 

  • the differences between fair and unfair dismissal
  • the rights you have and the action you might take, depending on the circumstances.

These are general guidelines only, because every case is different.

 

What is fair dismissal?

 

The law says that an employer must give a valid reason for dismissing you. The main kinds of reason to justify fair dismissal are:

  • your conduct: you have done something wrong
  • your capability or qualifications for the job: your employer is not satisfied with your performance 
  • a statutory requirement: for example, you cannot continue to drive a bus if you lose your driving licence
  • you are about to retire: and your employer has given due notice and considered the possibility of your working beyond retirement
  • you are redundant: your employer has no work, or not enough work, for you to do
  • another substantial reason: for example, you are sent to prison, or you had a temporary contract to cover for someone and that person returns. 

What is unfair dismissal?

 

In law most employees have the right not to be unfairly dismissed. If your employer dismisses you, he or she must be able to show that there was a good reason for this and he or she acted reasonably. There is no upper age limit for unfair dismissal.

 

As a rule, you cannot take action against unfair dismissal if you:

 

  • have worked continuously with the employer for less than a year
  • are in the police or armed forces
  • are part of the crew of a fishing vessel paid solely by a share in the profits
  • have reached a settlement in which you waived your right to make a complaint about the issue in question. 

There are some exceptions. Some grounds for dismissal are automatically unfair, no matter how long you have worked for the employer. These include:

  • maternity, pregnancy or family issues such as paternity, adoption or parental leave, requests for flexible working or taking time off for dependants
  • discrimination: age, marital status, sex, race, disability, sexual orientation, religion or belief
  • union membership or activities
  • pay and working pattern, including annual leave, National Minimum Wage and  Working Time Regulations
  • certain types of redundancy situations and lawful industrial disputes
  • some issues related to jury service.

In some claims for unfair dismissal on medical grounds arising from health and safety, the minimum period of service is one month.

 

What should I do if I am unfairly dismissed?

 

If you feel you have been unfairly dismissed you have the right to complain through your employer’s disciplinary and grievance procedures. Many cases are solved in this way.

 

After that, you can go to the Advisory, Conciliation and Arbitration Service (ACAS), an independent organisation which aims to help you to reach a voluntary settlement, resulting in reinstatement, re-engagement to another job, or sometimes compensation.

 

Otherwise, normally within three months of leaving the job, you may take your complaint to an employment tribunal.  If you go through the employment tribunal hearings and it is agreed that you were unfairly dismissed, the tribunal can order your employer to reinstate, re-engage or compensate you.

 

What is constructive dismissal?

Constructive dismissal can occur if you are forced to leave your job because of the way your employer has treated you - including you suffering bullying or harassment at work. If this happens you may take your case to an employment tribunal.

If the tribunal decides that your employer has done something which justifies you resigning (perhaps by demoting you or reducing your pay without consulting you) it can rule that you have been constructively dismissed.   

What if my employer makes me redundant?

 

Your employer may make you redundant when he or she needs to reduce the workforce because:

 

  • the business, or part of the business, stops operating or is moving elsewhere
  • the need to cut costs means staff numbersmust be reduced 
  • work of a particular kind has decreased or stopped. 

It is not redundancy if your employer immediately takes on a direct replacement for you.

If your employer proposes to make 20 or more employees redundant within a 90 day period this is called collective redundancy. You have additional rights in this case, including:

  • the right to be informed and consulted through your trade union or other elected representative
  • the right to a period of notice depending on your length of service
  • the right to time off for training or to look for another job.

If you feel you have been unfairly selected for redundancy, you can appeal against the decision in the same way as if you feel you have been unfairly dismissed.

Do I have the right to compensation?

 

You normally have the right to compensation for redundancy if:

  • your job has disappeared: it does not matter if your employer is recruiting more staff for work of a different kind, or in another location (unless your contract says you have to move to the new location)
  • you have at least two years’ continuous service.

You may not have the right to redundancy payment if you are: 

  • a member of the police or armed forces
  • an apprentice - check your contract
  • a domestic servant in a private home and a member of your employer's immediate family
  • part of the crew of a fishing vessel paid solely by a share in the profits
  • an independent contractor or an employee on a fixed term contract of three months or less
  • a crown servant or employee in a public office
  • a member of staff in the House of Lords or House of Commons.

There is no upper or lower age limit on the right to redundancy payments.

 

How much would I get?

 

If you are redundant, there is a legal minimum lump sum payment. The amount you could get depends on:

  • your age 
  • how long you have been continuously employed: you must generally have worked for the employer for at least two years
  • your weekly pay: up to a legal limit (£350 from 1st February 2009).

The guidelines for working out the minimum lump sum redundancy payment include:

  • for each full year of continuous service where your age was under 22, you will receive half a week's pay
  • for each full year of continuous service where your age was 22 or above but under 41, you will receive one week's pay
  • for each full year of continuous service where your age was 41 or over, you will receive 1½ weeks' pay.

You will not pay income tax on a statutory redundancy payment, and it will not affect jobseeker’s allowance if you are entitled to it. However, you may have to pay tax on any sum your employer pays you over the legal minimum.

 

If your employer cannot pay the lump sum, speak to his or her representative or contact the Redundancy Payments Office so that you can claim the money you are due.

Useful contacts:

The Redundancy Helpline: 0845 145 0004
ACAS Helpline: 08457 47 47 47

 

Useful websites

 

ACAS: http://www.acas.org.uk/index.aspx?articleid=774

Department for Business, Innovation and Skills (formerly Department of Business, Enterprise and Regulatory Reform, BERR)

Web: http://www.bis.gov.uk/   Former Web:

http://www.berr.gov.uk/employment/employment-legislation/employment-guidance/dismissal-redundancies/page22304.html will continue to operate for some time

Employment Tribunals: http://www.employmenttribunals.gov.uk

Maternity Action: http://www.maternityaction.org.uk - partner in the Alliance Against Pregnancy Discrimination

Redundancy Help: http://www.redundancyhelp.co.uk/

Direct Gov: http://www.direct.gov.uk/en/Employment/Employees/RedundancyAndLeavingYourJob/index.htm