Grounds for the Termination of Employment

Grounds for the Termination of Employment

Reasons for Termination of Employment

  • Termination of employment refers to the ending of an employment contract between an employer and an employee. It can occur for a variety of reasons.

Redundancy

  • Redundancy occurs when an employer no longer requires an employee’s job to be done by anyone, or the business is closing down or changing.
  • It must be handled fairly by the employer - employees have the right to be consulted, to a fair selection process, and to receive a redundancy payment if they’ve been with the business for at least two years.

Dismissal

  • An employee can be dismissed for poor performance, illegality, or gross misconduct.
  • Gross misconduct includes serious offences like theft, physical violence, or serious negligence, which might warrant instant dismissal.
  • Poor performance dismissal usually follows a fair process with a chance for the employee to improve.
  • Dismissal due to illegality occurs if it becomes illegal to employ the person, for example, due to immigration issues.

Mutual Agreement

  • Termination of employment can also happen upon mutual agreement between the employer and the employee.
  • For instance, both parties might agree to end the employment contract due to changes in the business or personal circumstances.

Resignation

  • Lastly, an employee can choose to terminate their employment by handing in their resignation.
  • Notice periods can vary depending upon the employment contract.

Unfair Dismissal

  • If an employee feels that they have been dismissed unfairly, wrongfully, or constructively, they can take their case to an employment tribunal.
  • Constructive dismissal is when an employee is forced to resign due to the employer’s conduct.
  • Wrongful dismissal refers to a situation where an employer breaches the terms of an employee’s contract during the dismissal process. For instance, not providing adequate notice.

Importance of Fair Termination Process

  • It’s crucial that the termination process is handled legally and ethically by employers. Violating employment laws could lead to legal action.
  • Employers should consider the impact of termination on the employee’s well-being and future employment, providing support where possible.
  • Both parties should aim to part on good terms to maintain their reputations in the wider business community.