3. Repeated infringement / Serious Major Infringement

If an infringement continues after a first written warning, or a serious and damaging infringement occurs (such as theft or abusive behaviour), a final written warning should be given.

This should give the details of the complaint as well as outlining the necessary actions and timescale for change. The warning should give details of the right for appeal, and show that if the correct action is not taken, it may lead to demotion, disciplinary suspension without pay, disciplinary transfer, or dismissal.

A copy of the final written warning should be kept on record for a satisfactory period of time (e.g.: a year) and then disregarded.

4. Disciplinary Action

If after the given warnings and timescale no improvement is seen, then disciplinary action may be taken against the employee.

Dismissal Notice

The minimum legal period of notice for dismissed employees is dependent on the number of years of service.

• If the employee has been employed for more than a month, but less than two years, they are entitled to at least one weeks notice.
• If the employee has been employed for two years, they are entitled to at least two weeks notice.
• If an employee has been employed for more than two years, but less than twelve years, they are entitled to at least one weeks notice for every year of continuous service.
• If an employee has been employed for twelve or more years, they are entitled to at least twelve weeks notice.
• If the employee’s contract states a different period of notice to the legal minimum, then whichever is the longest applies.

In cases of serious gross misconduct, it is usually legal to dismiss an employee without notice; however caution should always be taken, as this can leave you open to an unfair dismissal claim should the allegations against the employee prove false or not qualify as adequate grounds for dismissal.

Employees with more than a year’s continuous service have the right to receive a written statement of the reasons for their dismissal if requested.

Redundancy Notice

The minimum notice period for redundant employees is the same as those for dismissed employees. However, in cases of collective redundancy, there are additional consultation periods that must be allowed for:

If a business makes, or proposes, more than 19 redundancies within a 90 day period, it is called a collective redundancy. (Although this situation is unlikely for small business, it does still occur.) In these cases you must contact and consult with appropriate employee representatives (e.g.: relevant union official) who may be affected, as well as notifying the Department of Trade and Industry of the proposed dismissals. Otherwise you could be open to unfair dismissal claims.

Consultation is legally required to start at least thirty days before any dismissals are made, unless there are one hundred or more redundancies, in which case the consultation should be at least ninety days before dismissals.

Fixed Contracts

In the cases of fixed employment contracts, when they are due to end on a set date, there is no need for any notice if the contract ends on that date. If, however employment is to end before the expiry of the contract, then the standard period of notice is due.

Redundancy Pay

An employee is entitled to redundancy pay if they are over 18 and have worked for you for at least two years continuous service.

Redundancy pay entitlement is worked out based upon the employee’s weekly wage (If the wage varies from week to week, then an average figure is used.), with the maximum figure being £260 per week.

An overview of the method for working out required payments is as follows:

• For every year of service between the ages of 18-21 the employee receives half a weeks pay.
• For every year of service between the ages of 22-40 the employee receives one weeks pay.
• For every year of service between the ages of 41-65 the employee receives one and a half weeks pay.
• (Between the ages of 64-65 the amount of required redundancy payment reduces each month.)

The maximum number of years of continuous service that can be counted towards redundancy pay is 20, counting backwards from the time of redundancy.

For example:

1. A 45 year old with 10 years service at a pay of £200 would receive the following:

£200 x 1 x 5 = £1000 (Service between the ages of 35-40)

£200 x 1.5 x 5 = £1500 (Service between the ages of 41-45)

Total redundancy pay = £2500

2. A 50 year old with 30 years service at a pay of £250 would receive the following:

£250 x 1 x 10 = £2500 (Service between the ages of 30-40)

£250 x 1.5 x 10 = £3750 (Service between the ages of 41-50)

Total redundancy pay = £6250

(The first 10 years of service are discounted in accordance with the redundancy payment limit of 20 years service.)

Remember

Dismissal should never be instant, allow the employee to have their say, and follow company or standard warning procedures to minimise the risk of unfair dismissal claims.

In serious cases, suspend the employee rather than dismissing them, that way, if the allegations are false, there is much less risk of (and basis for) the employee claiming against you.

Redundancies must only occur when a job no longer exists. If a vacancy appears for the job, it is not redundancy.

Offering voluntary redundancies may cost more, but will minimise damage to employee morale.

Always give at least the minimum amount of notice as required by law or employee contract (whichever is greater).

You should always do detailed reading of applicable laws and guidelines before making any decisions on redundancy or dismissal.

Further information:

Redundancy (DTI guide): http://www.dti.gov.uk/er/redundancy/consult-pl833.htm

Dismissal (DTI guide): http://www.dti.gov.uk/er/individual/fair-pl714.htm

Acas guides to dismissal, redundancies, as well as an online guide to dismissal and grievances: http://www.acas.org.uk/

Back - Page One