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Unfair dismissal, also known as wrongful termination, describes an employer firing an employee for a reason that violates their employment contract or employment law. Laws surrounding unfair dismissal claims can vary from state to state.
As an employer, being accused of unfair dismissal can be stressful and overwhelming. This is especially true if you didn’t intend to or don’t believe you did. If you want to improve your chances of avoiding unfair dismissal claims in the future, take these actions:
Provide Training and Development
Avoiding unfair dismissal doesn’t have to start when you’re at risk of it. From learning how to improve collaboration in the workplace to offering opportunities for employee training and development to enhance skills and performance – you can take many proactive measures!
You may also like to provide training for managers so they are aware of employment law, especially surrounding employee rights and termination. The more proactive you are, the easier it might be to avoid situations that may later result in dissatisfied employees and unfair dismissal claims.
Ensure Clear Employment Contracts
A lack of contract clarity can sometimes play a massive part in unfair dismissal claims. That’s why clear employment contracts can be crucial. Ensure all contracts outline the specific terms of employment. These include expectations, grounds for termination, and job duties.
If any company policies or job policies change, ensure the employment contracts change with them.
Be Consistent with Disciplinary Action
There often needs to be a one-size-fits-all approach to disciplinary action if you want to be at a reduced risk of unfair dismissal claims. For example, if one employee was rude to a customer and received a written warning while another employee was fired for the same offense, they may have grounds for an unfair dismissal complaint.
Always ensure consistency in your disciplinary procedures and keep detailed records of all disciplinary actions and warnings. You can then refer back to them if needed.
Seek Legal Advice
It’s not always easy knowing what to do when you believe you need to fire an employee. You may not be sure that their actions are a fireable offense. You may even be worried that they are, and you haven’t terminated them as you should.
Seek legal advice if you’re unsure. Employment lawyers can help you remain abreast of local employment laws. They can also ensure your dismissals comply with legal requirements.
Establish Grievance Procedures
Not all employee and employer-related problems have to escalate to legal action. If you have grievance procedures in place, many workplace problems can be investigated and solved in-house. If you don’t already have an internal resolution process, now might be the right time to implement one.
Follow Appropriate Dismissal Procedures
While you might know that you’re going to dismiss an employee regardless of dismissal procedures, you should still follow them. Conduct a thorough investigation to get to the bottom of any performance issues or alleged misconduct. Unless the employee’s behavior is gross misconduct, you may also need to provide a written warning before resorting to dismissal.
Offer Severance Packages
Whether you suspect an employee will try to bring about an unfair dismissal claim or not, consider offering severance packages. Fair compensation for employees leaving your business may prevent disputes. You may also see the value in having former employees sign severance agreements to potentially avoid future unfair dismissal claims.
Letting employees go from your business can be stressful enough without worrying about unfair dismissal claims. Fortunately, you may be able to prevent that from happening by taking some of the actions above.