How To Fire An Employee

Sometimes a small business may have to let go of an employee for unavoidable reasons. This is never an easy task, but is made more complicated by the employment laws designed to protect workers. In order to make sure you are not breaking the law, you should try to understand the various regulations involved.

Laying Off an Employee

You should be aware that you may not need to fire an employee. If your business is going through a particularly bad patch and cannot afford to pay its staff, you can make them redundant. You can also terminate employment after a fixed time that has been outlined in the employee’s contract. Both of these situations are technically not ‘dismissal’ and you should make sure you are abiding by the company’s rules and policies.

Fair, Unfair and Wrongful Dismissal

It is important to understand the difference between fair, unfair and wrongful dismissal. Wrongful dismissal is when the employer breaks the agreed rules that govern the company’s dismissal process. If an employee feels that you have not abided to the rules, they can file for a ‘grievance’ (a complaint) and you and your business may be taken to an employment tribunal. Unfair dismissal is when an employer chooses grounds for terminating an employee’s employment that are either discriminatory or unfair. An employer must have fair reasons for why an employee is to be fired, such as failure to do a job properly or consistent lateness, and follow their dismissal procedure at all times.

Firing an Employee

When firing an employee make sure that you are clear about your reasons and follow the guidelines. Do not let personal relationships or attitudes invade the procedure, you should be calm and objective about the situation. Remember, it is your right as an employer to be able to dismiss employees who are not suitable for the job.

After you have dismissed the individual, you need to provide them with a P45 form which details their current tax position (so they can take it to their next employer). You will also need to complete a P11 form for your business so you can record how much tax the employee has paid.

You should always keep a record of the circumstances surrounding every dismissal. This is for future reference if the former employee applies for another vacancy and also because you may have to provide the individual with a written reason for their dismissal if they request one within 14 days of the termination.

Always remember to be clear about the reasons for firing someone and do not allow any personal feelings to cloud your professionalism.