Reasons for dismissal

Overview

For a dismissal to be fair, it's for you to show that the only or principal reason for it relates to one or more of the following 5 reasons:

• The employee's capability to do the work for which they were employed
• The employee's conduct
• Redundancy
• Illegality (where continuing to employ them will contravene a statutory provision)
• Some other substantial reason justifying the employee's dismissal from the position they were holding

If you can't show this, the employee could make a claim for unfair dismissal at an Employment Tribunal.

Capability to do the work for which they are employed

Dismissals on the grounds of capability are based on an employee not doing their job properly (i.e. incompetence).

This might be because they:

• don't have the right qualifications
• are not performing to the required standard, or
• are unable to work because of sickness.

The capability must be assessed in relation to the work that they were doing.

A long-term sickness absence may be a fair reason for dismissal.

Conduct

This a fairly general reason and can cover virtually any form of misconduct while working for you, such as:

• Disobedience
• Dishonesty
• Fighting
• Any form of discrimination (including harassment)
• Absence without permission
• Lateness
• Breaches of contract
• Breaches of work rules.

To minimise potential liability for unfair dismissal, you should have (and use) a comprehensive written disciplinary policy.

Sometimes dismissal for conduct outside of the workplace may be fair, though the conduct must reasonably be connected with doing their work or have an effect on the employment relationship, such as a criminal offence committed elsewhere.

For example, if your employee is a cashier and is charged with a motoring offence, this should not have any effect on your working relationship. However, if they are charged with theft, it could.

Redundancy

This is a potentially fair reason for dismissing your employee. See the section on redundancy for more information.

Acting illegally

This covers situations where it becomes illegal either for your employee to work in their role, or for you to continue to employ them in their position.

For example: your employee is employed to drive a vehicle and they've been disqualified because of a motoring offence. The employee is therefore no longer legally able to drive. You would be expected to try and find other suitable work for them before choosing to dismiss.

Some other substantial reason (SOSR)

This is a separate category, where none of the other fair reasons apply. The onus of proof will be on you to show that you had a fair reason to dismiss the employee. SOSR can include the following situations:

• Imprisonment
• An irresolvable personality clash between co-workers
• If the business moves to another location, or if it's taken over, and it isn't possible to employ them because of economic, technical or organisational reasons
• If an employee unreasonably refuses to accept a company reorganisation that changes your employment terms
• Retirement
• The end of a fixed-term contract

You may be expected to look at any alternative roles before choosing to dismiss.

Statement of reasons for dismissal

Employees who have been continuously employed for at least 2 years (or 1 year, for employees in Northern Ireland), are entitled to request a written statement of the reasons for the dismissal.

You must give this within 14 days of their request. A request will not be needed if they're a woman who is pregnant or on maternity or adoption leave. If so, they are automatically entitled (without prior request) to a written statement.

Note: In England, Wales and Scotland, it's expected that from 1 January 2027 the entitlement to request written reasons will apply after 6 months of continuous employment.

Failing to give a written statement can result in a claim to an Employment Tribunal.

The statement will be admissible in evidence in any claim for unfair dismissal. The time limit to present the complaint is generally 3 months from (and including) the effective date of termination. If a claim is successful, a tribunal must order you to pay them 2 weeks of their usual pay.