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.