If you are an employer, you should be aware of the five permitted reasons for dismissing an employee under the Employment Rights Act 1996. A dismissal for any reason falling outside of those stated in the legislation exposes you, or your company, to a claim for unfair dismissal by an employee.

In Part 1 of this series on unfair dismissal, we begin by exploring the first of these five reasons – capability and qualifications.
But let us first consider, what is meant by ‘unfair dismissal’ and how it could affect you as a registered employer?

What is unfair dismissal?

Employees have been provided the right in law not to be unfairly dismissed by their employer – in other words, without there being a fair reason. An employer must show they had both a good reason to do so, and that they acted fairly throughout the dismissal process. Failing to follow the correct procedure could lead to a claim against you or your company in an employment tribunal.

Capability and qualifications

An employer may fairly dismiss an employee if the dismissal relates to the capability or qualifications of the employee for performing work of the kind which they were to do. But what is meant by “capability”?

Capability refers to to a skill, aptitude, health or any other physical or mental quality which relates to the job the employee is employed to do, and because of this they are unable to perform their role to the required standard. The reason also includes where an employee may be unable to do their job because of an illness or injury. Likewise, dismissal on the ground of qualifications would include where a qualification is essential for the role and one which the employee does not possess.

Whilst you may believe your reason falls within the permitted reason of capability and qualifications, an appropriate procedure must be followed before the dismissal takes place. If you are an employer considering dismissal of an employee, it is essential that you follow an appropriate dismissal procedure to prevent an employment tribunal finding against you and liable to pay compensation to the employee.

At Mewies Solicitors, we can help to ensure you have the correct procedures in place to prevent a claim for unfair dismissal.

Contact our Dispute Resolution team on 01756 799000 or email litigationteam@MewiesSolicitors.co.uk for further legal advice.