Victoria Hattam and Gemma Lane explain how to sack someone fairly
When the board of McNicholas Construction dismissed its chief executive and finance director over dinner, it found itself in hot water with an employment tribunal. A QC ruled that the sackings were unfair because none of the necessary procedures had been followed.

Employment law is extensive and ever-changing, but there are some basic principles. In all cases, you must act reasonably and give the right to appeal.

You have a fair reason for sacking an employee if:

  • He is redundant
    Make sure there is a genuine redundancy situation. An employee will not be redundant if he is to be replaced by somebody else.

    If 20 or more employees are at risk, employee representatives will need to be elected and you must notify the DTI.

    Give employees as much notice as possible of the potential redundancies and explain the reasons behind them.

    Consult with employees about alternatives to redundancy, including alternative employment within the group before a final decision is made.

    Use fair, objective and non-discriminatory selection criteria.

  • He is incapable or unqualified
    Establish and follow procedures, including regular and honest appraisals to flag up performance problems at an early stage.

    If a problem is identified, act on it. Talk to the employee formally about the company's concerns, explain what is expected of him, provide him with adequate training, set clear targets and time-limits for improvement, warn him that disciplinary action may result if there is not adequate improvement, and review progress. Document this.

    If the employee does not then show adequate sign of improvement, take disciplinary action. Include preliminary warnings before a dismissal.

  • He is guilty of misconduct
    Establish and follow disciplinary procedures.

    Where misconduct is alleged, inform the employee in good time, investigate the allegations fully and invite him to a hearing to give him a chance to explain. Allow him to be accompanied.

    Consider whether dismissal is the most appropriate sanction, or whether less drastic action would be a more reasonable response.

  • There is "some other substantial reason"

    • Source

    Construction Manager

    Postscript

    Examples have included maternity cover and imprisonment.

    Victoria Hattam and Gemma Lane work in Taylor Wessing's employment and pensions dept