Steps Employers Must Follow in Dismissal

Employers in England and Wales must follow structured steps when dismissing an employee to ensure the process is fair, reasonable and legally compliant. Failing to do so can lead to claims in an Employment Tribunal for unfair dismissal, wrongful dismissal or discrimination, as well as potential awards of compensation. Dismissal procedures vary depending on whether the reason is misconduct, capability issues, redundancy or other grounds, but all fair dismissals share common procedural principles. This article explains the stages employers should follow, relevant legal frameworks such as the Acas Code of Practice on disciplinary and grievance procedures, statutory requirements under the Employment Rights Act 1996, and practical guidance on avoiding legal risks.

Legal Foundations: Fair Dismissal and Employer Obligations

Fair Reason and Reasonableness

Under the Employment Rights Act 1996, an employer must have a valid reason for dismissal (such as misconduct, capability, redundancy, statutory restriction or some other substantial reason) and must act reasonably and fairly in applying that reason. Employers who fail to follow a fair procedure at any stage risk a tribunal finding even a genuine substantive reason to be unfair in law.

The Acas Code of Practice

The Acas Code of Practice on disciplinary and grievance procedures sets out procedural principles that employers should follow in most dismissals for conduct or capability. Although not law, employment tribunals take compliance with the Code into account and may adjust compensation upward or downward by up to 25% where the Code has not been followed without good reason.

Step‑by‑Step: Dismissal Procedure

Step 1: Establish the Grounds for Dismissal

Before taking any action, the employer should identify and document the reason for considering dismissal. This may be:

• Conduct or gross misconduct (e.g. serious rule breaches);
• Capability issues (e.g. consistent poor performance);
• Redundancy (role no longer required);
• Statutory reasons (e.g. loss of licence required for work); or
• Some other substantial reason (such as business reorganisation).

Employers should consider whether alternative actions could address the issue without dismissal (training, role adjustment, mediation).

Step 2: Investigate the Matter

An investigation should gather relevant facts and evidence before any dismissal decision. This may involve interviews, review of performance records, witness statements and documentary evidence. A thorough investigation helps ensure the employer understands the situation and reduces the risk of decisions being based on incomplete or inaccurate information.

Step 3: Inform and Invite the Employee to a Meeting

Before any hearing, the employer must inform the employee in writing of:

• the allegations or issues being considered;
• the evidence gathered;
• that dismissal is being contemplated; and
• the employee's rights, including the right to be accompanied at the meeting. Employers must give employees reasonable time to prepare and provide copies of any supporting evidence.

Employees have a statutory right to be accompanied at formal disciplinary and dismissal meetings by a colleague or trade union representative.

Step 4: Hold a Fair Hearing or Meeting

At the disciplinary/ dismissal meeting, the employer should:

• present the evidence objectively;
• give the employee an opportunity to respond and explain their position;
• allow the employee to ask questions and raise matters in mitigation; and
• ensure the meeting is conducted by a manager who is impartial.

This meeting is a critical part of procedural fairness; it ensures the employee is heard and the employer actively considers the employee's perspective.

Step 5: Decide and Communicate the Outcome

After the meeting, the employer should consider all information fairly and make a decision. The outcome letter should be provided as soon as possible and should clearly state:

• the decision on dismissal;
• the reasons for that decision;
• the effective date of dismissal;
• any notice period or payment in lieu of notice; and
• the employee's right of appeal and how to exercise it.

Employers should ensure the dismissal letter is clear and accurate as it may be reviewed in any subsequent tribunal claim.

Step 6: Offer an Appeal

Fair dismissal procedures must provide a genuine right of appeal. This should be to a manager not involved in the original decision where possible. Appeals should be heard without unreasonable delay, with the employee having the opportunity to present their case and challenge the original decision.

Appeals are important both substantively and procedurally. Tribunals consider whether an employer gave the employee a meaningful opportunity to appeal when assessing fairness.

Special Situations

Summary Dismissal for Gross Misconduct

Gross misconduct (such as serious theft, violence, or fraud) may justify summary dismissal (immediate termination without notice). However, even in these cases an employer should gather evidence, give the employee an opportunity to explain, and follow a fair hearing process. This ensures the decision aligns with the principles of fairness and reasonableness.

Statutory and Contractual Requirements

Written Reasons for Dismissal

Employers are encouraged to provide written reasons for dismissal. Under Employment Rights Act 1996 provisions, employees with sufficient service (typically two years, though this is set to change to six months from January 2027) may request a written statement of reasons, and employers must provide it within 14 days of request.

Notice Periods

Employers must give at least statutory notice (or contractual notice if greater) unless dismissal is for valid summary reasons. Statutory notice ranges from one week to up to 12 weeks depending on length of service.

Procedural Fairness and Tribunal Considerations

Tribunals assess whether an employer acted within a range of reasonable responses when dismissing an employee. Following a structured procedure aligned with the Acas Code shows the employer took the process seriously, investigated properly, and balanced the interests of both parties. Tribunals may reduce awards if the Acas Code was not followed without good reason.

Failing to follow a fair procedure can strengthen an employee's claim for unfair dismissal, as procedural defects may suggest the dismissal was unreasonable in all the circumstances.

Record Keeping and Documentation

Throughout the dismissal process, employers should maintain detailed records of investigations, meeting notes, outcome letters, and correspondence. Good documentation supports fair decision‑making, helps employers demonstrate compliance if the case reaches tribunal, and assists in addressing grievance or appeal issues efficiently.

Practical Guidance for Employers

• Train managers on fair procedures and the Acas Code.
• Review and update internal policies regularly to align with legal standards and organisational needs.
• Communicate clearly in writing at each stage of the process.
• Be consistent in applying policies across employees to avoid perceptions of bias.
• Consider legal advice early where complex dismissal issues arise, such as capability, disability adjustments, or discrimination concerns.

Key Takeaways

Dismissal is one of the most legally sensitive decisions an employer can make. To ensure fairness and legal compliance, employers should follow a structured procedure that includes identifying the grounds for dismissal, conducting a thorough investigation, informing the employee in writing, holding a fair hearing, deciding and communicating the outcome, and providing a meaningful right of appeal. Adhering to statutory standards, the Acas Code of Practice and well‑documented internal procedures helps employers manage dismissal risk and contributes to more robust decision‑making in the workplace.