Employment Law: Three Types of Dismissal

In UK employment law, there are three types of dismissal. In order to bring a claim forward, each has its own list of requirements. We explore these in further detail below:

The 3 types of Employment Dismissal

Unfair Dismissal

Unfair dismissal is the first Employment Dismissal we will cover. It refers to the termination of an employee’s contract by the employer without a valid reason, or a reason not complying with employment law. The term “unfair” means that the dismissal is unreasonable and unjustified.

If you have been unfairly dismissed and wish to commence a claim, there are requirements which must be satisfied. You must be an employee, who has been continuously employed for a period of two years starting on the date that the employment commenced and ending on the EDT (effective date of termination). Further, you must not be in an excluded class e.g. crown workers, in the military, police officer etc. You must have also been dismissed from employment.

There are five permitted reasons that are classed as “fair” by the Employment Rights Act 1996. If an employer can show one of these five reasons, a Tribunal would then assess whether the employer acted reasonably in dismissing the employee for that reason.

Employers should always follow fair and transparent procedures when considering dismissing an employee. This includes giving notice of termination, providing a valid reason for the dismissal, giving the employee the opportunity to respond, and offering support or alternative employment where possible. By doing so, employers can minimise the risk of a claim for unfair dismissal and maintain a positive working relationship with their staff.

Wrongful Dismissal

Wrongful dismissal is the second Employment Dismissal, and it refers to a situation where an employer has terminated an employee’s contract of employment in a manner that breaches the terms of the contract or is in violation of the law. A wrongful dismissal may occur where an employer dismisses an employee without proper notice, or without following the proper procedures set out in employment law or the employment contract.

If an employee wants to make a claim for wrongful dismissal related to Employment Dismissal, it does not matter how long they’ve worked for their employer. Wrongful dismissal gives rise to a common law action for breach of contract. Therefore, the remedy is damages for breach of contract. Damages can be claimed for pecuniary loss only, and thus cannot be claimed for loss of future prospects

The time limit in which to bring a claim is three months from the date of EDT. The employee must have actually been dismissed, otherwise there will be no case.

Claims typically arise when an employee is dismissed without proper notice or where the employer breaches a fundamental term of the employment contract, such as failing to pay an employee’s salary. This may also include situations where an employer wrongfully dismisses an employee due to discrimination, harassment, or retaliation for exercising their legal rights.

It is important to note that if an employee commits a repudiatory breach of the contract, the employer is entitled to dismiss without notice. Examples include theft, revealing trade secret, gross misconduct etc.
In order to avoid wrongful dismissal claims, employers should ensure that they comply with all applicable employment laws, as well as the terms of their employment contracts.

This includes providing proper notice to employees when terminating their employment, providing all final pay and benefits owed, and ensuring that termination decisions are not made on discriminatory or retaliatory grounds.

Constructive Dismissal

Constructive dismissal is the 3rd Employment Dismissal and refers to a situation where an employee is forced to resign from their employment due to their employer’s conduct, which has breached or fundamentally changed the terms of their employment contract. This may include actions such as reducing an employee’s pay, changing their job duties or work location without their agreement, or creating a hostile work environment.

In order to bring a claim for constructive dismissal forward, you must have been in continuous employment with the employer for a minimum of two years.

Although the employee technically resigns, constructive dismissal is often considered to be the equivalent of an unfair dismissal, as the employee has been forced to leave the company due to their employer’s actions. The employee may be entitled to compensation for lost earnings and other damages.

To prove constructive dismissal, the employee must show that the employer’s breach of contract was serious enough to justify their resignation, and that they did not accept the breach by continuing to work for the company. The employee must also show that they resigned promptly, without undue delay.

As with unfair dismissal related to Employment Dismissal, employers should take care to follow transparent procedures and avoid taking actions that may be considered a breach of an employee’s employment contract. This includes consulting with employees before making any significant changes to their job or working conditions and providing appropriate warnings or support where necessary.

Thank you for taking the time to read our article!

If you have any queries regarding the above, or require our assistance with an alternative matter, please do not hesitate to get in touch with out expert team of solicitors at Lawdit today.

Tel: 023 8023 5979

E-mail: info@lawdit.co.uk

References for Employment Dismissal

Here are some references for Employment Dismissal, they are all from high authority sites and sources relevant to this site and our work here.

• Effective date of termination (UKPracticalLaw.ThomsonReuters.COM)
• Employment Rights Act 1996 (Legislation.GOV.UK)
• UK (Wikipedia.ORG)
• Tribunal (GOV.UK)

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