Welcome, everyone, to our webinar on managing dismissals without costly legal disputes.
My name is Roisin. I am one of our Legal Solutions Consultants here at LegalVision. Today’s webinar will be hosted by Saeidul Haque, our Senior Associate in our employment team.
Before we begin, just a couple of quick housekeeping items to go through.
You will receive a recording and a copy of the slides in your email after the webinar.
You can submit all of your questions in the Q&A box, and we will answer them towards the end.
We always love feedback, so please complete the feedback survey after the webinar.
By viewing this webinar, you are also eligible to receive a complimentary consultation with LegalVision to discuss how we can help your business. To claim this, just leave your contact details in the survey that appears when the webinar ends, or contact us via our website.
Webinar overview
Today, we will be discussing unfair dismissal, minimising your risk. What counts as a fair reason for termination? Steps to follow a fair and defensible dismissal process. Reasonable adjustments and employee rights. Termination risks and how to avoid disputes. We will also go over the key takeaways towards the end, and that will all be followed by a Q&A.
Over to Saeidul now.
Why dismissals carry risk
Saeidul Haque:
Thank you so much.
In terms of employee terminations, this can be quite a high-risk decision for most businesses, and getting it wrong can be quite easy and can lead to costly employment tribunal claims.
Not only that, we also have to think about the potential reputational damage and low morale among existing staff. With reputational damage, this is quite important because employment tribunal matters are public-facing, so anyone can attend and view the hearing itself. Often, local newspapers and outlets will attend hearings to report on ongoing cases, so it is very important to bear that in mind.
Particularly from 1 January next year, the qualifying period for unfair dismissal claims is going to be dropping from two years to six months, so that is quite a significant change.
The compensation cap that we have in place at the moment will also be removed, meaning that the stakes are getting higher when it comes to employee terminations.
This webinar is going to focus on fair reasons for dismissal and practical steps we can take to minimise the risk to the business of a dispute, and also from a reputational damage point of view.
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Fair reasons for termination
So, what counts as a fair reason for termination?
We have five fair reasons.
The first is conduct. Conduct-based terminations are based on disciplinary matters. For example, an employee may fail to follow a reasonable management instruction at the lower end, or at the more serious end, they may physically assault a member of staff or a member of the public, where there might be scope for a gross misconduct dismissal.
The second is capability. This can be split into two parts: ordinary capability and medical capability.
For ordinary capability, we are looking at a case where someone is qualified to do the job they were recruited to do but is struggling to do it for one reason or another. It may be that they do not have enough experience or have not been exposed to certain tasks.
It could also be based on medical grounds. They may be physically capable of doing the role, but there may be mental health issues where we need to consider adjustments. If ultimately they are not capable of doing the role, you could potentially terminate their employment for that reason.
Thirdly, we have redundancies. Typically, this is where work has ceased or diminished, or is expected to cease or diminish.
For example, the business may be closing a site or closing altogether. In those situations, you have to follow a fair process before making redundancies, but it does count as a fair reason for termination.
Fourthly, we have statutory bans. This relates to illegality. For example, if someone loses the right to live and work in the UK and you continue to employ them, this could expose you to claims because you could be in breach of immigration laws, which can carry significant financial penalties and potentially criminal consequences.
Finally, we have SOSR, or some other substantial reason. This is a catch-all category if the situation does not fall within the other categories.
An example could be third-party pressure. For instance, if you run a cleaning company and a client does not want a particular employee on-site and pressures you to remove them, that could potentially be a fair reason.
Another example is a breakdown in the employment relationship between employer and employee. This can happen following grievances, particularly where senior staff are involved and the relationship cannot realistically continue.
SOSR can also overlap with other areas such as conduct or capability, so it is important to bear that in mind.
Steps for a fair dismissal process
So, what steps do we need to follow to ensure a fair and defensible dismissal?
Generally, we need to carry out an investigation, hold a formal hearing, provide an outcome, and allow for an appeal.
This process can vary depending on the reason. For example, redundancy processes are different, but the general framework applies to most situations.
Conducting a fair investigation
A fair investigation is the first step.
It is important that we do not make predetermined assumptions, even if the case seems very clear.
We still need to carry out an investigation, including speaking to witnesses, gathering evidence, and reviewing relevant materials such as CCTV footage or performance data.
The key point is to gather as many facts as possible before deciding whether to proceed to a formal hearing.
The formal hearing
The formal hearing builds on the investigation.
It allows us to address unanswered questions and present evidence to the employee.
We should ensure the employee has an opportunity to respond to the allegations and any evidence presented.
Minimising the risk of disputes
In terms of avoiding disputes, the main thing we can do is conduct thorough investigations before taking any action. This includes speaking to witnesses and gathering evidence.
We should allow employees to be accompanied at formal hearings. This could be a fellow employee or a trade union representative, and in some cases, others as a reasonable adjustment, such as a family member.
We also need to be consistent. Similar cases should be treated in similar ways to avoid claims of unfairness or discrimination.
We should keep contemporaneous records of all meetings and decisions, including the process followed and the objective reasons for decisions. This documentation will be key if there is a dispute.
Decision-makers should be impartial and, where possible, not involved in the investigation.
Employees should be given adequate time to prepare for hearings. As best practice, at least 48 hours should be provided where possible.
We should also provide genuine appeal rights, ideally heard by someone not previously involved.
Where possible, we should explore alternatives to dismissal, such as redeployment, demotion, or additional support.
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Key takeaways
Always follow a fair process.
Ensure there is a fair reason for dismissal.
Follow internal policies and remain consistent.
Comply with the ACAS Code of Practice where applicable.
Document everything.
Consider reasonable adjustments.
Provide clear written reasons and offer a right of appeal.
LegalVision membership and resources
Roisin Crewe:
You may find our publication useful on 2026 key UK employment law changes. You can find that in the resources tab on our website or scan the QR code.
You may also be interested in our upcoming events.
We are going to answer your questions shortly. While you submit them, we will briefly outline LegalVision’s membership.
By becoming a LegalVision member, your business receives unlimited access to our team of specialist lawyers for business-as-usual legal needs, including document drafting, contract reviews, legal advice consultations, and more.
Q&A
Saeidul Haque:
We have received a number of questions from the audience, so I will work through as many as possible.
An appeal is appropriate in most dismissal cases, but not always. For example, if dismissal is due to illegality, such as loss of the right to work, an appeal may not change the outcome.
In cases involving employees with less than two years’ service, you may decide not to offer an appeal depending on risk, but consistency is key.
Another question is whether you can dismiss an employee for personal reasons with less than two years’ service. The answer is yes under SOSR, but you should still follow a fair process.
Employees can be accompanied at hearings by a colleague or trade union representative. If a representative is disruptive, you can adjourn and reconvene with a different representative.
On demotion, offering it as an alternative to dismissal does not automatically create liability. It can be a reasonable step where dismissal would otherwise occur.
On performance, it is possible to move from a formal warning to dismissal if the issue has a significant detrimental impact on the business.
That is all we have time for today. Thank you very much for joining us.
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