If you are dismissed from your job
This article summarises:
- the differences between fair and unfair dismissal
- the rights you have
- 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:
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your conduct: you have done something wrong
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your capability or qualifications for the job: the employer is not satisfied with your performance
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a statutory requirement: for example, you cannot continue to drive a bus if you lose your driving licence
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you are about to retire: and your employer has given due notice and considered the possibility of your working beyond retirement
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you are redundant: your employer has no work, or not enough work, for you to do
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another substantial reason: for example, if you have 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 after more than a year’s service, he or she must be able to show that there was a good reason for dismissing you and that he or she acted reasonably.
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.
Since October 2006, there has been no upper age limit for unfair dismissal.
There are some exceptions. Some grounds for dismissal are automatically unfair, no matter:
· how long you have worked for the employer
· whether you work part time or are on a fixed term contract.
These grounds include:
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maternity or pregnancy
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discrimination: sex, race, disability, sexual orientation, religion or belief
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union membership or activities
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pay and working hours, including annual leave, National Minimum Wage and Working Time Regulations
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family issues such as paternity or adoption leave, parental leave, requests for flexible working or taking time off for dependants
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certain types of redundancy situations and industrial disputes
- some issues related to jury service.
In certain claims for unfair dismissal on medical grounds arising from health and safety, the minimum period of service is one month.
What 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. You may have a fellow worker or trade union official with you. Many cases are solved by this means.
After that, normally within three months of the date of leaving the job, you may take your complaint to an employment tribunal. However, before any formal hearing takes place, you can present the case before the Advisory, Conciliation and Arbitration Service (Acas), an independent organisation whose goal is to help you to reach a voluntary settlement, resulting in reinstatement, re-engagement to another job, or sometimes compensation.
If you do go through the various stages of 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
See the article Employment tribunals and arbitration for details.
What is constructive dismissal?
If you have been forced to leave your job because of the way your employer has treated you (usually by breaching your written or verbal contract) 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
- the business is moving somewhere else
- the need to cut costs means staff numbers must be reduced
- the need for 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 twenty or more employees redundant within a ninety day period this is called a collective redundancy. You have additional rights in this situation. These include:
- 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 workers 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.
However, you may not always have the right to redundancy payment. You may not have if you are:
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a member of the armed forces
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an apprentice at the end of your time
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an employee of the government of an overseas territory
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a domestic servant working in a private home who is also a member of the employer's immediate close family
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part of the crew of a fishing vessel paid solely by a share in the profits
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a crown servant or employee in a public office
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a member of staff in the House of Lords or House of Commons.
Since October 2006, there has been no upper age limit for redundancy.
How much would I get?
If you are redundant, there is a legal minimum lump sum payment. The amount you could get depends on:
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your age: how your years of service relate to the age band you are in
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your continuous years of service: you must generally have worked for the employer for at least two years
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your weekly pay: up to a legal limit (£310 from 1st February 2007).
There are guidelines for working out the minimum lump sum redundancy payment. They include:
- for each complete year of continuous service below the age of 22, you will receive half a week's pay
- for each complete year of continuous service between the ages of 22 and 40, you will receive one week's pay
- for each complete year of continuous service aged 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 dies, or cannot pay the lump sum, you should speak to his or her representative (liquidator, trustee or receiver) 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, Enterprise and Regulatory Reform:
http://www.berr.gov.uk/employment/employment-legislation/employment-guidance/dismissal-redundancies/page22304.html
UK Government Website: http://www.direct.gov.uk/en/Employment/Employees/RedundancyAndLeavingYourJob/index.htm
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