Could a former employee take an unfair dismissal claim against you? Did you know that if they did, and are successful in this claim, they could be awarded up to a maximum of two years remuneration? Here’s everything you need to know...
An unfair dismissal occurs when an employee who has 1 year’s continuous service is dismissed either:
- For an unfair reason
- As a disproportionate sanction
- Following a flawed procedure
Unfair dismissals are governed by the Unfair Dismissal Acts 1977. Reasons for fair dismissals fall under the following grounds:
- Conduct
- Capability
- Redundancy
- Or some other substantial ground
When an employee is dismissed, it must be due to a justified substantial ground – and the dismissal must come only after a fair procedure has been followed.
There are certain circumstances when an employee will not need to have 1 year’s continuous service in order to make an unfair dismissal claim, such as where an employee has been dismissed for:
- Reasons due to pregnancy
- Trade union membership
- Employees exercising their right of parental leave
Protecting your business from claims
What can you do as an employer to ensure that you don’t fall prey to a successful unfair dismissal claim being taken against you? Essentially, it comes down to two key areas:
- Have a clear and concise disciplinary procedure set out in your employee handbook or in your additional policies. This way, any time you’re faced with a troublesome employee, you have a guide to follow – plus employees will also be aware of what’s involved in the process, which may include a list of actions and the sanctions that will follow.
- Consistency is key! Similar actions will require similar sanctions, setting a precedent in the company. Imposing a higher sanction of dismissal on one employee than what’s been previously imposed on others in the past will likely be deemed unfair. The tribunal will look to see what the company has done in the past.
Case example
In a case from 2015, the EAT awarded an employee €30,000 for an unfair dismissal as a result of a flawed investigation. The employee who worked in a nursing home was clearly seen on CCTV footage being abusive to one of the elderly residents. This employee was found to have been unfairly dismissed due to:
- Not having been offered the right to representation at the investigation stage
- Not having been given the opportunity to view the CCTV footage
- And the investigation reached conclusions when it should have been purely fact-finding
This case highlights the importance of following a fair and consistent procedure. If the employer had allowed the employee to view the footage, to be represented, and only found facts in the investigation, it’s very likely that the dismissal would have been fair, and the employer would not have had to pay out a large sum in compensation.
It’s vitally important for employers to be aware of the damaging ramifications of having an employee win in an unfair dismissals case, just as in the case above.
Remedies include:
- Reinstatement - the employee will be returned to their old role and will be entitled to receive back payment from the date of dismissal to date of reinstatement
- Re-engagement - the employee will be returned to their role or an alternative suitable role
- Compensation - the employee may be awarded up to a maximum of two years’ compensation
If you have any questions in relation to unfair dismissals, please contact our expert employment law advisors on the 24 Hour Advice Service on 0818 923 923
