Benefits in Kind
Capital Gains Tax (CGT) - rules rewritten
Charitable Giving
Charities: Trustees' Responsibilities
Company Cars
Consumer
Protection and the Law
Corporation Tax Self Assessment
Directors Responsibilities
Dismissal Procedures
Dividends - the Post 6 April 1999 Regime
E-Commerce: The Jargon Demystified
E-mail/Internet Acceptable Use Policy
Enterprise
Investment Scheme
Inheritance Tax
IR35
Limited Liability Partnerships
National Insurance
National Minimum Wage
Preparing for your Accountant
Quarterly Instalment Payments
Raising Finance
Recruitment Procedures
Stakeholder Pensions
Statutory Maternity Pay and Statutory Sick
Pay
Starting Up in Business
Taxation of the Family
Tax Saving Opportunities for Companies
Travel and Subsistence for Directors and Employees
Use of Trusts
VAT
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DISMISSAL
PROCEDURES |
There have been many
changes to employment law and regulations in the last few years. A key area is the freedom
or lack of freedom to dismiss an employee.
An employees employment can be terminated at any time but unless the dismissal is
fair the employer may be found guilty of unfair dismissal by an employment tribunal.
We set out below the main principles involved concerning the dismissal of employees. We
have written this factsheet in an accessible and understandable way but some of the issues
may be very complicated.
Professional advice is important before any action is taken.
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| THE RIGHT TO DISMISS EMPLOYEES |
Reasons for a fair dismissal would
include the following matters.
- The person does not have the
capability or qualification for the job (this requires the employer to go through
consultation and/or disciplinary processes).
- The employee behaves in an
inappropriate manner (the terms and conditions of employment should refer to what would be
unreasonable behaviour and the business must go through disciplinary procedures).
- Redundancy providing it is a
genuine redundancy with no suitable alternative work, there has been adequate consultation
and there is no discrimination in for example, who is selected.
- The dismissal is the effect
of a legal process such as a driver who loses his right to drive (and the employer is
expected to explore other possibilities such as looking for alternative work before
dismissing the employee).
- Some other substantial
reason.
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| CLAIMS FOR UNFAIR
DISMISSAL |
After one years
service employees can make a claim to an employment tribunal for unfair dismissal within
three months of the date of the dismissal and if an employee can prove that he/she has
been pressured to resign by the employer he/she has the same right to claim unfair
dismissal.
If the employee proves his/her case the tribunal can come up with three remedies which are:
- re-instatement which means
getting back the old job on the old terms and conditions
- re-engagement which would
mean a different job with the same employer
- compensation where the
amount can be anything from a smallish sum to an unlimited amount if the dismissal was due
to some form of discrimination.
If the dismissal is demonstrated as
being due to any of the following it will be deemed to be unfair regardless of the length
of service
- discrimination for sex, race
or disability
- pregnancy, childbirth or
maternity leave
- refusing to opt out of the
Working Time Regulations.
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| GOOD DISCIPLINARY
PROCEDURES |
On many occasions a
dismissal which seems quite justified to the employer will be found to have been unfair if
correct disciplinary proceedings were not followed. ACAS (the Advisory, Conciliation and
Arbitration Service) has developed a Code of Practice for Disciplinary Practice and
Procedures and it is recommended that employers should follow this code.
In outline the procedure is as follows (the original is four pages long and can be
obtained from ACAS on 020-7396-5100).
- The terms and conditions of
employment should refer to the disciplinary procedures and details of warnings must be
written and put on file. The final warning should say that further occurrences of
misconduct could lead to dismissal.
- Further events would then
lead to a formal investigation and the employee should be invited to a disciplinary
hearing. The hearing should be documented and the employee be given every opportunity to
put his/her side of the story. There should then be a break in the proceedings before any
decision is taken on the individuals employment.
- The decision of the hearing
should be communicated in writing together with an outline of the reasons for the decision
taken and the employee should be told of a right to appeal.
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| We will be more than happy to provide
you with assistance or any additional information required. |
For information
of users: This material is published for the information of clients. It provides only an
overview of the regulations in force at the date of publication, and no action should be
taken without consulting the detailed legislation or seeking professional advice.
Therefore no responsibility for loss occasioned by any person acting or refraining from
action as a result of the material can be accepted by the authors or the firm.
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