Yes; in order to be fair, your reasons for dismissing your employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. must fall within one of the following categories:

1. a reason which relates to the capability or qualifications of the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. to carry out their work;

2. a reason which relates to the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.'s conduct;

3. the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.'s role is being made redundant;

4. the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. cannot continue to be employed because of a legal ban which prevents them doing their job; or

5. there is some other substantial reason.

See Q&A 10 and following for particular situations in which you may be justified in dismissing a member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer..

Note that there are some reasons you specifically cannot use to dismiss your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member; see Q&A 3.

You must not dismiss any member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. if the reason relates to a protected characteristicAge, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex or sexual orientation. , as otherwise you could face a claim for discriminationTreating someone differently directly or indirectly because of their age, disability, gender reassignment, marriage or civil partnership status, being pregnant and/or being on maternity leave, race, religion or belief, sex or sexual orientation.. Depending on the circumstances, be aware that damages An sum of money ordered by a court to be paid to a person as compensation for loss or injury. can be very high for discriminationTreating someone differently directly or indirectly because of their age, disability, gender reassignment, marriage or civil partnership status, being pregnant and/or being on maternity leave, race, religion or belief, sex or sexual orientation. claims.

In addition, you must make sure that you do not use any of the following reasons for dismissing your employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.:

1. because they have exposed certain wrongdoings within your business (known as whistleblowingWhen an individual discloses information, usually about wrongdoing within a business, that he reasonably believes is in the public interest. For example if a crime has been committed or someone's health and safety has been endangered.) (see Q&A 27 for further information about this).

2. the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. is pregnant or for reasons to do with the fact that the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. has taken family-related leave ie maternity, paternity or adoption leaveA period of leave from work available to certain members of staff who have adopted a child through an adoption agency or who have had a child through a surrogacy arrangement, during which they are still entitled to the benefit of all terms in their contract of employment (expect remuneration terms) and after which they are entitled to return to work. or parental bereavement leaveA period of leave from work available to employees following the loss of a child under 18, or a stillbirth after 24 weeks of pregnancy. This right may also be referred to as 'Jack's Law'. (see Q&A 13 for further information);

3. the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. has been summoned for jury duty (see Q&A 14 for further information);

4. the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. has raised concerns about health and safety;

5. the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. is, or is a candidate to become, an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. representative or a trade union representative;

6. the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. is trying to assert their rights:

   1. about their working hours, such as the right not to work more than a 48 hour week (provided they have not opted out of this limit in their Employment Contract) (see Rules about working hours for further information about the rules on working hours);

   2. not to work on a Sunday if they are a shop workerA staff member who has an obligation to do their work personally for someone who is not their client or customer. (unless Sunday working has been agreed to in their employment contract) (see Night and weekend working);

   3. as a part-time or fixed-term workerA staff member who has an obligation to do their work personally for someone who is not their client or customer. ;

   4. to request flexible workingA working arrangement which is different to the normal working pattern. For example, it might involve working fewer or different hours, or working from home on certain days. arrangements (see Flexible working requests for further information on dealing with flexible workingA working arrangement which is different to the normal working pattern. For example, it might involve working fewer or different hours, or working from home on certain days. requests);

   5. to study and training;

7. the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. is trying to assert their right to be enrolled onto a pension scheme or is a trustee(Generally) A person who holds property on behalf of someone else (the beneficiary). of an occupational pension schemeA pension scheme which is organised by an employer for their staff. which relates to their employment (see Enrolling staff into a pension scheme for more information on your pension duties);

8. the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. is trying to assert their rights to the national minimum wageThe minimum hourly wage that employers must pay their staff. Staff who are aged 21 and over must be paid the National living wage. or the national living wageThe minimum hourly wage that employers must pay their staff who are aged 21 and over. Staff who are aged under 23 must be paid the National minimum wage. or tax credits; or

9. the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. is refusing to accept an offer to become a shareholderIn relation to a company limited by shares, means a person whose name has been entered in the register of members of that company as a shareholder in that company..

Yes. As well as having an appropriate reason, before you dismiss an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. you must also follow a fair procedure. Whilst it is important to treat all staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. fairly, this is particularly important in relation to employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. who have been continuously employedHow long a person has been employed without a break lasting at least a week. Time off work whilst still employed (eg annual leave, sick leave etc) does not count as a break. by you for two years or more. This is because these employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. are able to bring an unfair dismissalWhen an employee is dismissed without good reason or without following the proper procedure. Tribunal awards for unfair dismissal are up to one year's gross pay, currently capped at £93,878. claim against you if you fail to follow a fair procedure. See Staff resignations and retirement for how the law of unfair dismissalWhen an employee is dismissed without good reason or without following the proper procedure. Tribunal awards for unfair dismissal are up to one year's gross pay, currently capped at £93,878. is likely to change under the Employment Rights Bill.

What amounts to a fair procedure will vary depending on the circumstances. You should always consider the Acas Code of Practice on Disciplinary and Grievance Issues. Failing to follow it can disadvantage you if your employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. later claims they were unfairly dismissedWhen an employee is dismissed without good reason or without following the proper procedure..

In the majority of cases, you should:

1. conduct an investigation;

2. if your investigation shows that there is a disciplinary case to answer, write to your employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. inviting them to a hearing to deal with the issue;

3. at the hearing, give the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. the opportunity to address any evidence against them, raise any points and present any evidence they want to in relation to the concerns or allegations;

4. conduct a further investigation if necessary;

5. make your decision and inform the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work., including giving them a right to appeal; and

6. if the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. does appeal, it should be dealt with by a more senior manager to the one that made the initial decision if possible.

See Taking disciplinary action for full details of how to carry out each step involved, and links to template documents you can use, including a template disciplinary policy and a disciplinary investigation template (see Staff handbook and policies and Disciplinary investigation template).

Generally, only employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. have a probationary periodA period of time during the beginning of an employment relationship where new hires can usually be dismissed with less notice.. The rules are less stringent for dismissing an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. during their first two years working for you, as it is not until they have two years' service that they will be eligible to bring a claim against you for unfair dismissalWhen an employee is dismissed without good reason or without following the proper procedure. Tribunal awards for unfair dismissal are up to one year's gross pay, currently capped at £93,878. if you do not have a fair reason or follow a fair procedure when dismissing them. For example, this means that you do not have to allow your employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. to appeal your decision.

Nevertheless, it is good practice to follow a fair process as outlined in Q&A 4, and in compliance with any specific probationA period of time during the beginning of an employment relationship where new hires can usually be dismissed with less notice. policy you may have, as there are still some claims that your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. can make if dismissed during their first two years:

1. a discriminationTreating someone differently directly or indirectly because of their age, disability, gender reassignment, marriage or civil partnership status, being pregnant and/or being on maternity leave, race, religion or belief, sex or sexual orientation. claim against you if you fail to follow a fair procedure and they feel you have treated them differently because of any issue relating to age, disabilityA physical or mental impairment which has a substantial or long-term effect on a person’s ability to carry out normal day to day activities., gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex or sexual orientation (this applies to all staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer.);

2. an unfair dismissal claimA legal claim brought by an employee who has been dismissed without good reason or without following the proper procedure. if you dismiss them for certain reasons. For example, if the dismissal relates to whistleblowingWhen an individual discloses information, usually about wrongdoing within a business, that he reasonably believes is in the public interest. For example if a crime has been committed or someone's health and safety has been endangered. by the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. (this applies to employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. only). See Q&A 3 for a full list of reasons that will be considered automatically unfairIn the context of employment law, when an employee is dismissed for reasons like race, gender, sexual orientation, religion, maternity or paternity leave, part-time status, or any other reason that is never allowed, it is automatically unfair dismissal, meaning that even if you have acted reasonably it is still illegal. regardless of length of service. See Staff resignations and retirement for how the law of unfair dismissalWhen an employee is dismissed without good reason or without following the proper procedure. Tribunal awards for unfair dismissal are up to one year's gross pay, currently capped at £93,878. is likely to change under the Employment Rights Bill.

Note that, in general, if an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. is underperforming during their probationary periodA period of time during the beginning of an employment relationship where new hires can usually be dismissed with less notice. or there have been misconductUnacceptable or improper behaviour issues, it is advisable that you tackle them immediately. Given the reduced risk of an unfair dismissal claimA legal claim brought by an employee who has been dismissed without good reason or without following the proper procedure., the probationary periodA period of time during the beginning of an employment relationship where new hires can usually be dismissed with less notice. is the ideal time to set the standards that you expect from your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer., to discipline for any failures to meet those standards and if necessary, to dismiss a staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member who is not meeting your expectations. For more information about managing staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. on probationA period of time during the beginning of an employment relationship where new hires can usually be dismissed with less notice., see Managing staff performance and for a probationA period of time during the beginning of an employment relationship where new hires can usually be dismissed with less notice. review form, see Probation Review Form.

You are not always legally obliged to tell a member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. why you are dismissing them. However, it is usually a good idea to be clear with them as to your reasons for their dismissal anyway. Usually, part of following a fair procedure leading up to a dismissal will involve being open with the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member about any issues that might lead to dismissal (see Q&A 4 for when and how to follow a fair procedure).

An employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. who has been in continuous employmentHow long a person has been employed without a break lasting at least a week. Time off work whilst still employed (eg annual leave, sick leave etc) does not count as a break. with you for two or more years is entitled to request written reasons for their dismissal and if they do so, you must provide a statement of those reasons within 14 days of their request. If there is any dispute about the dismissal later, your employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. can use the statement in court so you must ensure it is accurate. If you give false reasons or go back on what you said previously, it may looks like you are trying to cover up the real reason and a court may infer that, for example, the dismissal was discriminatory.

If you are dismissing an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. who is pregnant or who is on maternity or adoption leaveA period of leave from work available to certain members of staff who have adopted a child through an adoption agency or who have had a child through a surrogacy arrangement, during which they are still entitled to the benefit of all terms in their contract of employment (expect remuneration terms) and after which they are entitled to return to work. (regardless of their length of service), you must provide a written statement of reasons without waiting for the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. to ask for it.

Otherwise, there is no legal obligation to provide reasons to members of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. you are dismissing but, as noted, it will usually be sensible to do so.

See Dismissal letter for a template which includes an explanation of the reasons for dismissal.

If an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. indicates that they believe the decision to dismiss them is unfair or wrong, you should give them the opportunity to appeal their dismissal. You must also allow any type of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member a right of appeal if their contract grants them one. If you have made any procedural errors in your original dismissal procedure, a comprehensive appeals process can afford you the opportunity to correct them and potentially avoid a claim for unfair dismissalWhen an employee is dismissed without good reason or without following the proper procedure. Tribunal awards for unfair dismissal are up to one year's gross pay, currently capped at £93,878. from a former employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work..

You should allow any appeals to be heard as soon as possible and they must be dealt with impartially. If you can, you should use a manager to deal with the appeal who has not been involved in any previous meetings about the dismissal.

A fair and impartially handled appeal process can help you to flush out any disputes about the dismissal and the reasons for it at an early stage, potentially avoiding the possibility of a legal claim being brought against you later by a disgruntled former staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member. However, you will need to be prepared to allow the decision to be looked at afresh and to consider with an open mind any points which the member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. puts forward.

For full details on how to handle appeals, including template correspondence, see Taking disciplinary action and for a model script for an appeal hearing, see Basic script for conducting a disciplinary appeal hearing.

If you no longer wish for a member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. to continue working for you, you should dismiss them appropriately rather than trying to force them into a resignation.

This is because if the member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. feels they have been left with no choice but to resign as a result of your actions, they might be able to say that in fact they were dismissed or that you broke the terms of your contract with them, in either case meaning that a legal claim could be brought against you.

The following types of behaviour could lead to this situation and should be avoided:

1. cutting a staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member's salary or other contractual benefits without their agreement;

2. subjecting the member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. to bullying, abuse or unfair criticism;

3. transferring the member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. to a different job or location if you do not have a contractual right to do so or do not give reasonable notice; or

4. changing the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member's fundamental duties without their agreement.

Yes. There is nothing to prevent you and a employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. having discussions to agree the terms of their departure. Such discussions can be helpful when you are concerned that a member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. may later try to bring a claim against you in connection with the dismissal or if you wish to settle matters quickly without having to go through full disciplinary or investigative procedures.

You and the member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. can enter into a legally binding agreement under which the member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. waivesGiving up or abandoning a legal right. the right to bring a legal claim against you, usually in return for some form of payment to them.

However, you need to approach both discussions and the drafting of any such agreement with care to ensure that they are legally effective; see Q&A 112 for how to go about this.

Usually yes, as long as you have taken certain steps first and follow a fair process if you do take the decision to dismiss. Note that you need to be particularly careful if the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. has (or may have) a disabilityA physical or mental impairment which has a substantial or long-term effect on a person’s ability to carry out normal day to day activities.; see Q&A 12.

What counts as a fair process will depend on the particular situation, including the size of your organisation and what resources you have available to you. Usually, you should do what you can to find out what the reasons for the absences are and potentially suggest that the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. sees a doctor or other health adviser. Consider what arrangements you can put into place to accommodate the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work., such as permitting some flexibility in their working hours to allow them to attend medical appointments.

However, you are entitled to take into account the impact on the rest of your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. and on your business as a whole. If the absences continue and are disruptive, you will need to warn the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. that if they persist, this could result in dismissal; you should give them an opportunity to improve having done this. If there is no adequate improvement, you will usually be justified in treating persistent absences as a sufficient reason to dismiss.

See Taking disciplinary action for guidance about the procedure you should follow and template letters you can use to communicate with the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member, including Invitation to attend meeting to discuss sickness absence.

If a member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. has a disabilityA physical or mental impairment which has a substantial or long-term effect on a person’s ability to carry out normal day to day activities., you are under a duty to consider making adjustments to their working conditions in order to allow them to do their job. This might include allowing the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member to change duties or jobs within the business, adapting the work premises, providing specialist or modified work equipment, allowing them to work from home or allowing them flexibility with their working hours so that they can attend medical appointments. If you simply dismiss somebody who is disabledA physical or mental impairment which has a substantial or long-term effect on a person’s ability to carry out normal day to day activities. without having considered what adjustments you could put in place, you could be sued for disabilityA physical or mental impairment which has a substantial or long-term effect on a person’s ability to carry out normal day to day activities. discriminationTreating someone differently directly or indirectly because of their age, disability, gender reassignment, marriage or civil partnership status, being pregnant and/or being on maternity leave, race, religion or belief, sex or sexual orientation..

A disabilityA physical or mental impairment which has a substantial or long-term effect on a person’s ability to carry out normal day to day activities. can be anything that has a substantial and long-term effect on the individual's ability to carry out their day to day activities and can include some illnesses and mental health issues, although addictions such as alcoholism are not disabilities. See List of common disabilities for information about what can count. Seek advice from a doctor or other medical adviser if you are unsure.

See Long-term sickness absence and disability for further information about how to deal with staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. who have a disabilityA physical or mental impairment which has a substantial or long-term effect on a person’s ability to carry out normal day to day activities. and take sick leave.

If you genuinely cannot put reasonable adjustments in place, or if those you have tried are not working, you may then take the decision to dismiss the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member in the same way as you would any other. See Q&A 10 for steps to take if the problem is an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. who is on long-term sick leave and Q&A 11 if the problem is frequent sickness absence.

Depending on the circumstances, be aware that damages An sum of money ordered by a court to be paid to a person as compensation for loss or injury. can be very high for discriminationTreating someone differently directly or indirectly because of their age, disability, gender reassignment, marriage or civil partnership status, being pregnant and/or being on maternity leave, race, religion or belief, sex or sexual orientation. claims. For example, if your disciplinary procedure results in a dismissal causing an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. to lose their full pension rights, you may have to compensate them for their entire loss. It is therefore crucial that you handle a dismissal involving a disabledA physical or mental impairment which has a substantial or long-term effect on a person’s ability to carry out normal day to day activities. employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. carefully; you should seek legal advice if you are unsure. For access to a specialist lawyer in a few simple steps, you can use our Ask a Lawyer service.

Not if the only reason you are doing so is because she is pregnant, on maternity leaveA period of leave from work available to pregnant women and women who have recently given birth, during which they are still entitled to the benefit of all terms in their contract of employment (except remuneration terms), and after which they are entitled to return to work. or about to go on maternity leaveA period of leave from work available to pregnant women and women who have recently given birth, during which they are still entitled to the benefit of all terms in their contract of employment (except remuneration terms), and after which they are entitled to return to work.. If you do this you will be discriminating against her and may face a discriminationTreating someone differently directly or indirectly because of their age, disability, gender reassignment, marriage or civil partnership status, being pregnant and/or being on maternity leave, race, religion or belief, sex or sexual orientation. claim for compensation.

It would only be acceptable to dismiss a member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. in such a position if there was a very clear reason as to why she was being dismissed other than due to her pregnancy or the fact that she is taking maternity leaveA period of leave from work available to pregnant women and women who have recently given birth, during which they are still entitled to the benefit of all terms in their contract of employment (except remuneration terms), and after which they are entitled to return to work.. You must be careful, though, that you do not dismiss for reasons that might be attributed to her pregnancy, such as poor timekeeping or diminished performance because of pregnancy related sickness, as this could still amount to discriminationTreating someone differently directly or indirectly because of their age, disability, gender reassignment, marriage or civil partnership status, being pregnant and/or being on maternity leave, race, religion or belief, sex or sexual orientation..

In addition to the risk of a discriminationTreating someone differently directly or indirectly because of their age, disability, gender reassignment, marriage or civil partnership status, being pregnant and/or being on maternity leave, race, religion or belief, sex or sexual orientation. claim, when dismissing an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work., if the reason for the dismissal relates to her pregnancy or maternity leaveA period of leave from work available to pregnant women and women who have recently given birth, during which they are still entitled to the benefit of all terms in their contract of employment (except remuneration terms), and after which they are entitled to return to work., the dismissal will always be considered unfair and therefore an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. can claim unfair dismissalWhen an employee is dismissed without good reason or without following the proper procedure. Tribunal awards for unfair dismissal are up to one year's gross pay, currently capped at £93,878. regardless of the length of time she has been working for you.

Usually not, if the member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. is an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.. This is because if you dismiss an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. for going on jury service, it is automatically considered to be an unfair dismissalWhen an employee is dismissed without good reason or without following the proper procedure. Tribunal awards for unfair dismissal are up to one year's gross pay, currently capped at £93,878., irrespective of their length of service.

If the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.'s absence on jury service is genuinely likely to cause your business substantial harm (for example, you are likely to lose a significant amount of money or be unable to meet your contractual obligations to your clients) then you should bring this to the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.'s attention and they can ask to defer their jury service or be excused from it. If they unreasonably fail to do this after you have told them about the impact on the business, you could at that point dismiss them without it being unfair. However, you should always take care to consider whether the absence is going to be genuinely damaging to your business rather than merely inconvenient and what you could do to avoid dismissal.

This protection only applies to employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. and apprentices – not agency workersStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. or freelancersPeople, in business for themselves, who provide services to others. They may be individuals simply working under their own names, or may offer services through companies or partnerships. Sometimes known as consultants or independent contractors. , for example. Therefore, you could dismiss those types of workersStaff members who have an obligation to do their work personally for someone who is not their client or customer. for being absent on jury service.

Usually yes, as long as you have taken certain steps first and follow a fair process if you do take the decision to dismiss. Note that you must be particularly careful if the under-performance could be linked to an underlying disabilityA physical or mental impairment which has a substantial or long-term effect on a person’s ability to carry out normal day to day activities.; see Q&A 16.

Note that under-performance refers to the situation where a member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. is struggling to hit the standard of work expected of them. Under-performance is therefore a separate issue to misconductUnacceptable or improper behaviour, which includes both unprofessional behaviour and poor performance because of laziness or other unwillingness to work. However, in practice, many of these issues tend to intertwine, and so it is a good idea always to consider how issues of conduct and capability could be related.

You need to be able to demonstrate that dismissal is a fair sanction to impose in the circumstances. This is essential if the member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. is an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. who has been continuously employedHow long a person has been employed without a break lasting at least a week. Time off work whilst still employed (eg annual leave, sick leave etc) does not count as a break. by you for two or more years, as otherwise you risk a claim for unfair dismissalWhen an employee is dismissed without good reason or without following the proper procedure. Tribunal awards for unfair dismissal are up to one year's gross pay, currently capped at £93,878. being brought against you. See Staff resignations and retirement for how the law of unfair dismissalWhen an employee is dismissed without good reason or without following the proper procedure. Tribunal awards for unfair dismissal are up to one year's gross pay, currently capped at £93,878. is likely to change under the Employment Rights Bill.

This is usually achieved by first following a fair and thorough procedure to deal with the issue, ensuring you follow any disciplinary or capability policy you have in place, including:

1. investigating and gathering evidence to demonstrate what the problem is;

2. meeting the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. informally and working with them to put in place a plan and timetable for improvement, with additional training if appropriate; and

3. if matters do not improve, holding formal disciplinary meetings (at which the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. can be accompanied) and issuing written warnings which set out what further steps should be taken and warn of the possibility of dismissal.

See Taking disciplinary action for full guidance and documents to help you to carry out these steps and further information on the process you should follow, including a disciplinary investigation template (see Disciplinary investigation template ).

If there is no improvement after carrying out these steps, you could then dismiss the member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer..

If the member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. has a disabilityA physical or mental impairment which has a substantial or long-term effect on a person’s ability to carry out normal day to day activities., you are under a duty to consider making adjustments to their working conditions in order to allow them to do their job. This might include transferring the member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. to another role which they might find more manageable or providing additional equipment, such as specialist computer software.

If you fail to consider making adjustments and instead simply dismiss the member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. because they are not performing to the standard expected as a result of something arising from their disabilityA physical or mental impairment which has a substantial or long-term effect on a person’s ability to carry out normal day to day activities., this will most likely amount to disabilityA physical or mental impairment which has a substantial or long-term effect on a person’s ability to carry out normal day to day activities. discriminationTreating someone differently directly or indirectly because of their age, disability, gender reassignment, marriage or civil partnership status, being pregnant and/or being on maternity leave, race, religion or belief, sex or sexual orientation.. This could be the case even if there were additional causes, as well as the factor(In finance) A financier who provides finance to a business by buying the business's debts under the terms of a factoring agreement. relating to the disabilityA physical or mental impairment which has a substantial or long-term effect on a person’s ability to carry out normal day to day activities., for the dismissal.

A disabilityA physical or mental impairment which has a substantial or long-term effect on a person’s ability to carry out normal day to day activities. can be anything that has a substantial and long-term effect on the individual's ability to carry out their day to day activities and can include some illnesses and mental health issues, although addictions such as alcoholism are not disabilities. See List of common disabilities for information about what can count. Seek advice from a doctor or other medical adviser if you are unsure.

If you genuinely cannot put reasonable adjustments in place, or if those you have tried are not working, you may then take the decision to dismiss the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member in the same way as you would any other. See Q&A 15 for steps to take.

Depending on the circumstances, be aware that damages An sum of money ordered by a court to be paid to a person as compensation for loss or injury. can be very high for discriminationTreating someone differently directly or indirectly because of their age, disability, gender reassignment, marriage or civil partnership status, being pregnant and/or being on maternity leave, race, religion or belief, sex or sexual orientation. claims. For example, if your disciplinary procedure results in a dismissal causing an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. to lose their full pension rights, you may have to compensate them for their entire loss. It is therefore crucial that you handle a dismissal involving a disabledA physical or mental impairment which has a substantial or long-term effect on a person’s ability to carry out normal day to day activities. employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. carefully; you should seek legal advice if you are unsure. For access to a specialist lawyer in a few simple steps, you can use our Ask a Lawyer service.

You should also take care if you wish to dismiss an older member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. because you believe they are no longer capable of doing their job properly. If you believe that an older member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. is starting to under-perform you should discuss this with them as you would with any other member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer.. You should talk to them about what their plans are for the near future as they may wish to retire very soon.

You should not, though, assume that they will retire soon and that you therefore do not need to deal with any issues of under-performance, or that you can force them to retire. Forcing the member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. to retire will usually be age discriminationTreating someone differently directly or indirectly because of their age, disability, gender reassignment, marriage or civil partnership status, being pregnant and/or being on maternity leave, race, religion or belief, sex or sexual orientation.. Moreover, treating an older member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. differently by not taking any disciplinary action for their under-performance might be age discriminationTreating someone differently directly or indirectly because of their age, disability, gender reassignment, marriage or civil partnership status, being pregnant and/or being on maternity leave, race, religion or belief, sex or sexual orientation. against the younger members of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer.. See Q&A 15 for information about dismissing an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. who is under-performing.

For more information on dealing with issues about retirement, see Planning retirement.

Unauthorised absences and poor timekeeping can be valid grounds for dismissing a member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer..

However, this is an issue that can in most cases be dealt with easily and informally at an early stage without having to escalate it into a formal disciplinary action, so your first step should usually be to have an informal discussion with the member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. where you explore the reasons for the lateness or absence and warn that it is not acceptable. You should bear in mind that there may be a reason for the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member's behaviour that you do not know about, such as a family problem or an illness. Investigating the situation thoroughly and giving the member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. the chance to explain will help you determine this (see Q&A 19 for information about what to do if your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member's behaviour might be linked to an underlying disabilityA physical or mental impairment which has a substantial or long-term effect on a person’s ability to carry out normal day to day activities.). You should also be careful not to dismiss a pregnant employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. for lateness or absence if these reasons might be attributable to her pregnancy, as this could also amount to discriminationTreating someone differently directly or indirectly because of their age, disability, gender reassignment, marriage or civil partnership status, being pregnant and/or being on maternity leave, race, religion or belief, sex or sexual orientation..

If an informal approach doesn't work, you need to demonstrate that dismissal is a fair sanction to impose in the circumstances. This is essential if the member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. is an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. who has been continuously employedHow long a person has been employed without a break lasting at least a week. Time off work whilst still employed (eg annual leave, sick leave etc) does not count as a break. by you for two or more years, as otherwise you risk a claim for unfair dismissalWhen an employee is dismissed without good reason or without following the proper procedure. Tribunal awards for unfair dismissal are up to one year's gross pay, currently capped at £93,878. being brought against you. See Staff resignations and retirement for how the law of unfair dismissalWhen an employee is dismissed without good reason or without following the proper procedure. Tribunal awards for unfair dismissal are up to one year's gross pay, currently capped at £93,878. is likely to change under the Employment Rights Bill.

In most cases, you should follow a fair and reasonable disciplinary procedure before dismissal. See Staff handbook and policies for a template disciplinary procedure you can use. The process will usually involve:

1. carrying out a full and fair investigation to establish the facts; and

2. holding a formal disciplinary meeting to discuss the issue (at which the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. can be accompanied).

Following this, it is usually appropriate to issue a written warning for a first offence. Further incidents would normally result in a second or final written warning.

If the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member's behaviour does not improve following this process, you will usually be justified in dismissing them.

See Taking disciplinary action for further information about how to carry out a proper process and template documents, including an investigation template (see Disciplinary investigation template).

You need to be particularly careful if absence or lateness might be due to the fact that the member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. has a disabilityA physical or mental impairment which has a substantial or long-term effect on a person’s ability to carry out normal day to day activities..

If the member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. has a disabilityA physical or mental impairment which has a substantial or long-term effect on a person’s ability to carry out normal day to day activities., you are under a duty to consider making adjustments to their working conditions in order to allow them to do their job. This might include transferring the member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. to another role which they might find more manageable or altering their working hours. If you fail to consider what adjustments you could make and instead simply dismiss the member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. because they are not performing to the standard expected, this will most likely amount to disabilityA physical or mental impairment which has a substantial or long-term effect on a person’s ability to carry out normal day to day activities. discriminationTreating someone differently directly or indirectly because of their age, disability, gender reassignment, marriage or civil partnership status, being pregnant and/or being on maternity leave, race, religion or belief, sex or sexual orientation..

A disabilityA physical or mental impairment which has a substantial or long-term effect on a person’s ability to carry out normal day to day activities. can be anything that has a substantial and long-term effect on the individual's ability to carry out their day to day activities and can include some illnesses and mental health issues, although addictions such as alcoholism are not disabilities. See List of common disabilities for information about what can count. Seek advice from a doctor or other medical adviser if you are unsure.

If you genuinely cannot put reasonable adjustments in place, or if those you have tried are not working, you may then take the decision to dismiss the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member in the same way as you would any other. See Q&A 18 for steps to take.

Depending on the circumstances, be aware that damages An sum of money ordered by a court to be paid to a person as compensation for loss or injury. can be very high for discriminationTreating someone differently directly or indirectly because of their age, disability, gender reassignment, marriage or civil partnership status, being pregnant and/or being on maternity leave, race, religion or belief, sex or sexual orientation. claims. For example, if your disciplinary procedure results in a dismissal causing an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. to lose their full pension rights, you may have to compensate them for their entire loss. It is therefore crucial that you handle a dismissal involving a disabledA physical or mental impairment which has a substantial or long-term effect on a person’s ability to carry out normal day to day activities. employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. carefully; you should seek legal advice if you are unsure. For access to a specialist lawyer in a few simple steps, you can use our Ask a Lawyer service.

In some cases you can, but this will usually depend upon the extent of the lie.

You need to demonstrate that dismissal is a fair sanction to impose in the circumstances. This is essential if the member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. is an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. who has been continuously employedHow long a person has been employed without a break lasting at least a week. Time off work whilst still employed (eg annual leave, sick leave etc) does not count as a break. by you for two or more years, as otherwise you risk a claim for unfair dismissalWhen an employee is dismissed without good reason or without following the proper procedure. Tribunal awards for unfair dismissal are up to one year's gross pay, currently capped at £93,878. being brought against you. See Staff resignations and retirement for how the law of unfair dismissalWhen an employee is dismissed without good reason or without following the proper procedure. Tribunal awards for unfair dismissal are up to one year's gross pay, currently capped at £93,878. is likely to change under the Employment Rights Bill.

If the lie affects the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member's ability to do their job, then dismissal is likely to be justified; this could be the case if, for example, the member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. has lied about a professional accreditation which they need in order to legally do their job. In this situation, you are highly likely to be justified in dismissing the member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. on the basis that they are not qualified to do the job.

If the lie is something more benign, then you should consider whether it really warrants dismissal. For example, you are less likely to be justified in dismissing an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. for lying about a school exam grade on their CV if they have proven themselves to be competent at their job and the lie does not otherwise affect their ability to do it. However, dismissal may be justified if you consider the integrity of the individual to have been seriously undermined by even a small lie, if integrity and honesty is something that is very important to your business and/or you have a policy in place which states that dishonesty will be an actionable offence.

Whatever the circumstances, you should make sure you follow a fair and reasonable disciplinary procedure before taking the decision to dismiss, which includes investigating the situation thoroughly and giving the member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. a chance to explain their position. See Taking disciplinary action for further information about how to conduct a disciplinary process and Staff handbook and policies for a template disciplinary policy.

This will depend upon the nature of the crime and the role of the member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer., but you may be justified in dismissing for this reason.

You need to demonstrate that dismissal is a fair sanction to impose in the circumstances. This is essential if the member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. is an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. who has been continuously employedHow long a person has been employed without a break lasting at least a week. Time off work whilst still employed (eg annual leave, sick leave etc) does not count as a break. by you for two or more years, as otherwise you risk a claim for unfair dismissalWhen an employee is dismissed without good reason or without following the proper procedure. Tribunal awards for unfair dismissal are up to one year's gross pay, currently capped at £93,878. being brought against you. See Staff resignations and retirement for how the law of unfair dismissalWhen an employee is dismissed without good reason or without following the proper procedure. Tribunal awards for unfair dismissal are up to one year's gross pay, currently capped at £93,878. is likely to change under the Employment Rights Bill.

The first thing you should consider is whether the offence has any bearing on their work, as it must do so in order to count as a fair reason. This will depend on the nature of the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.'s job. For example, it is unlikely to be fair to dismiss a member of your sales team charged with a driving offence, although it may well be fair to dismiss a delivery driver charged with the same offence. It will almost certainly be fair to dismiss one of your shop assistants if they are convicted of stealing from a nearby shop; offences relating to violence and dishonesty are likely to affect most jobs and justify dismissal.

Before deciding to take any action, you should always ensure that you have carried out an investigation to establish the facts. The action you take is not necessarily influenced by the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member's guilt in attracting allegations. If they have only been charged with the offence then you do not know if they are guilty of committing it or not. Rather, the action taken should be reasonable based on the facts that you find by following a thorough disciplinary procedure.

The risk of reputational damage to your business may be a sufficient reason for you to dismiss a staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member, even if they are not ultimately convicted of an offence, although this will be very much fact specific. For example, if a staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member is charged with sexual assault and the nature of their work means they are typically left alone with vulnerable individuals, there would likely be a significant risk to reputation for a business that continued to expose those vulnerable individuals to that potential risk. In those circumstances, if the employerA person or business hiring one or more staff members. wanted to dismiss their staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member, it would need to show that it carried out a fair investigation and that the dismissal was a reasonable response in the circumstances.

Particularly where the offence involves a driving ban which affects the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.'s ability to do their work, you should consider whether you could move them to another role. You should also consider whether someone else can drive on the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.’s behalf and be open to having a trial period to see if any alternative arrangement might work.

See Taking disciplinary action for further information about how to conduct a disciplinary process.

Yes, in some circumstances.

If a member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. is expected to dress a certain way because they are representing your business, then it may be grounds for dismissal if they refuse to do so. Similarly, if a member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. is expected to wear appropriate clothing on health and safety grounds and refuses, this too may be grounds for dismissal.

However, you need to take particular care if the rules about dress which you are seeking to impose have a particular impact on the member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. because of their religion, race or ethnic origin, sex or sexual orientation, gender reassignment or disabilityA physical or mental impairment which has a substantial or long-term effect on a person’s ability to carry out normal day to day activities.; dismissing them because of their failure to dress appropriately in those circumstances might amount to discriminationTreating someone differently directly or indirectly because of their age, disability, gender reassignment, marriage or civil partnership status, being pregnant and/or being on maternity leave, race, religion or belief, sex or sexual orientation..

In addition, you must demonstrate that dismissal is a fair sanction to impose in the circumstances. This is essential if the member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. is an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. who has been continuously employedHow long a person has been employed without a break lasting at least a week. Time off work whilst still employed (eg annual leave, sick leave etc) does not count as a break. by you for two or more years, as otherwise you risk a claim for unfair dismissalWhen an employee is dismissed without good reason or without following the proper procedure. Tribunal awards for unfair dismissal are up to one year's gross pay, currently capped at £93,878. being brought against you. See Staff resignations and retirement for how the law of unfair dismissalWhen an employee is dismissed without good reason or without following the proper procedure. Tribunal awards for unfair dismissal are up to one year's gross pay, currently capped at £93,878. is likely to change under the Employment Rights Bill.

Where you feel that a member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. is dressing inappropriately, you should follow your normal disciplinary process before dismissing them. See Taking disciplinary action for further information about how to carry out a disciplinary procedure and Staff handbook and policies for a template disciplinary procedure.

Yes, abusive or inappropriate behaviour can be grounds for dismissal.

However, you must demonstrate that dismissal is a fair sanction to impose in the circumstances. This is essential if the member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. is an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. who has been continuously employedHow long a person has been employed without a break lasting at least a week. Time off work whilst still employed (eg annual leave, sick leave etc) does not count as a break. by you for two or more years, as otherwise you risk a claim for unfair dismissalWhen an employee is dismissed without good reason or without following the proper procedure. Tribunal awards for unfair dismissal are up to one year's gross pay, currently capped at £93,878. being brought against you. See Staff resignations and retirement for how the law of unfair dismissalWhen an employee is dismissed without good reason or without following the proper procedure. Tribunal awards for unfair dismissal are up to one year's gross pay, currently capped at £93,878. is likely to change under the Employment Rights Bill.

You should bear in mind that there may be a reason for the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member's behaviour that you do not know about, such as a family problem or an illness. Investigating the situation thoroughly and giving the member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. the chance to explain will help you determine this. If their behaviour may be linked to an underlying disabilityA physical or mental impairment which has a substantial or long-term effect on a person’s ability to carry out normal day to day activities., you must handle the matter particularly carefully; see Q&A 24.

In most cases, you should follow a fair and reasonable disciplinary procedure before dismissal. The process will usually involve:

1. carrying out a fair and thorough investigation to establish the facts; and

2. holding a formal disciplinary meeting to discuss the issue (at which the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. can be accompanied).

Following this, it is usually appropriate to issue a written warning for a first offence. Further incidents would normally result in a final written warning. It will usually be considered unfair to dismiss an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. because of one incident without giving them a chance to improve their behaviour, unless the behaviour is extremely severe.

For further information about how to carry out a disciplinary procedure, see Taking disciplinary action and see Staff handbook and policies for a template disciplinary policy.

If a member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. has a disabilityA physical or mental impairment which has a substantial or long-term effect on a person’s ability to carry out normal day to day activities., you are under a duty to consider making adjustments to their working conditions in order to allow them to do their job. This might include transferring the member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. to another role which they might find more manageable. If you fail to look into the matter and consider making adjustments where possible and instead simply dismiss the member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer., this may amount to disabilityA physical or mental impairment which has a substantial or long-term effect on a person’s ability to carry out normal day to day activities. discriminationTreating someone differently directly or indirectly because of their age, disability, gender reassignment, marriage or civil partnership status, being pregnant and/or being on maternity leave, race, religion or belief, sex or sexual orientation..

A disabilityA physical or mental impairment which has a substantial or long-term effect on a person’s ability to carry out normal day to day activities. can be anything that has a substantial and long-term effect on the individual's ability to carry out their day to day activities and can include some illnesses and mental health issues, although addictions such as alcoholism are not disabilities. See List of common disabilities for information about what can count. Seek advice from a doctor or other medical adviser if you are unsure.

If you genuinely cannot put reasonable adjustments in place, or if those you have tried are not working, you may then take the decision to dismiss the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member in the same way as you would any other. See Q&A 18 for steps to take.

Depending on the circumstances, be aware that damages An sum of money ordered by a court to be paid to a person as compensation for loss or injury. can be very high for discriminationTreating someone differently directly or indirectly because of their age, disability, gender reassignment, marriage or civil partnership status, being pregnant and/or being on maternity leave, race, religion or belief, sex or sexual orientation. claims. For example, if your disciplinary procedure results in a dismissal causing an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. to lose their full pension rights, you may have to compensate them for their entire loss. It is therefore crucial that you handle a dismissal involving a disabledA physical or mental impairment which has a substantial or long-term effect on a person’s ability to carry out normal day to day activities. employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. carefully; you should seek legal advice if you are unsure. For access to a specialist lawyer in a few simple steps, you can use our Ask a Lawyer service.

Yes; if you decide that your employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. is guilty of gross misconduct Misconduct committed by a member of staff that is so serious it allows the business to dismiss him immediately without any notice or payment in lieu of notice. you can end their contract at any time without giving any notice.

Gross misconduct Misconduct committed by a member of staff that is so serious it allows the business to dismiss him immediately without any notice or payment in lieu of notice. is any misconductUnacceptable or improper behaviour which is serious enough to justify dismissing the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member without notice. Given the gravity of an allegation of gross misconductUnacceptable or improper behaviour, you may consider suspending the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member in question on full pay until the facts of the matter can be investigated. A suspension can be very distressing for your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. and should only be used as a last resort.

See Taking disciplinary action for information about when it is appropriate to suspend someone, how to handle a suspension and investigation into a member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer.'s conduct, and Suspension letter pending investigation for a template suspension letter.

Gross misconduct Misconduct committed by a member of staff that is so serious it allows the business to dismiss him immediately without any notice or payment in lieu of notice. is any misconductUnacceptable or improper behaviour which is serious enough to justify dismissing the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member without notice.

There is no definitive list, but ACASAdvisory, Conciliation and Arbitration Service. A free service providing information and advice on workplace relations and employment law to both employers and employees. suggests that the following might commonly be considered gross misconductUnacceptable or improper behaviour:

1. stealing;

2. committing fraud;

3. physical violence or bullying;

4. discriminationTreating someone differently directly or indirectly because of their age, disability, gender reassignment, marriage or civil partnership status, being pregnant and/or being on maternity leave, race, religion or belief, sex or sexual orientation. or harassmentUnwanted behaviour that makes someone feel intimidated, degraded, humiliated or offended.;

5. serious misuse of the business's name or property;

6. serious insubordination;

7. deliberately accessing pornographic, offensive or obscene content on the internet while at work;

8. causing serious damage to the business's reputation;

9. serious incapability for work because of intoxication from alcohol or illegal drugs;

10. serious negligenceFailure to exercise the care that a reasonable person would in the circumstances. Intention is irrelevant. resulting in loss, damage or injury;

11. any breachA violation of a legal or moral obligation. of health and safety rules which is serious enough to cause injury or put others at substantial risk;

12. a serious breach of confidenceThe disclosure or use of confidential information; or the improper obtaining of confidential material; or in some circumstances, the retention of information obtained in confidence. If there is a breach of confidence, the person who breached (broke) confidence may be sued. (eg divulging confidential business information to a competitor).

No; you must not dismiss any member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. (except for freelancersPeople, in business for themselves, who provide services to others. They may be individuals simply working under their own names, or may offer services through companies or partnerships. Sometimes known as consultants or independent contractors. ) for exposing any of the following:

1. that a criminal offence has been or might be committed;

2. that a legal obligation has not been or might not be complied with;

3. that a miscarriage of justice has been or might be incurred;

4. that somebody’s health and safety has been or might be endangered; or

5. that the environment has been or might be damaged.

Any member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. could bring a claim for compensation if you dismiss them for these reasons. The claim will be against the business and, in some cases, can also be made against the individuals within the business who made the decision to dismiss, obliging them to personally pay any compensation.

Yes.

However, if the member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. is an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. then this is likely to count as a redundancyWhen a staff member is dismissed because his role is no longer needed.; this means that you have to follow a certain procedure and your employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. will be entitled to a redundancy paymentMoney paid to a staff member because he is being made redundant. if they are eligible for one.

If the member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. is an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. who has been continuously employedHow long a person has been employed without a break lasting at least a week. Time off work whilst still employed (eg annual leave, sick leave etc) does not count as a break. by you for two or more years, it is particularly important that you follow the correct redundancyWhen a staff member is dismissed because his role is no longer needed. procedure, as otherwise you also risk a claim for unfair dismissalWhen an employee is dismissed without good reason or without following the proper procedure. Tribunal awards for unfair dismissal are up to one year's gross pay, currently capped at £93,878.. See Staff resignations and retirement for how the law of unfair dismissalWhen an employee is dismissed without good reason or without following the proper procedure. Tribunal awards for unfair dismissal are up to one year's gross pay, currently capped at £93,878. is likely to change under the Employment Rights Bill.

See Q&A 30 and following for further information about how to dismiss someone for redundancyWhen a staff member is dismissed because his role is no longer needed..

Yes, in some circumstances.

EmployeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. cannot be dismissed for refusing to come into work if they reasonably believe that they would be in serious and imminent danger at the workplace, provided the danger is not something they could reasonably be expected to do something about themselves. EmployeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. dismissed in such circumstances could bring a claim against you for unfair dismissalWhen an employee is dismissed without good reason or without following the proper procedure. Tribunal awards for unfair dismissal are up to one year's gross pay, currently capped at £93,878..

In the context of concerns about COVID-19 infections, it will depend on the specific vulnerability of the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work., and the risks of COVID-19 to the individual. However, there are lots of reasonable measures that both you and your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. can take to dramatically reduce the risk of COVID-19 such as mask wearing, hand washing, social distancing, disinfection regimes, ventilation etc. Provided you follow good practice in infection control, it will be hard for your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. to prove they have been unfairly dismissedWhen an employee is dismissed without good reason or without following the proper procedure..

For detailed guidance on steps you can take and template risk assessmentsThe process of looking at what hazards may be present when doing a certain activity, or in a certain area, and the steps which can be taken to eliminate or reduce those dangers. that include COVID-19 safety measures, see Health and safety risk assessments.

Some alternatives to consider instead of redundancyWhen a staff member is dismissed because his role is no longer needed. are as follows:

1. Move employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. around within your business

   Moving employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. who are no longer needed in their current roles to vacancies elsewhere in the business; see Q&A 38 for further information about how to do this and when it may or may not be appropriate.

2. Change full time employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. to part-time or job-shareA share in the capital of a company (sometimes also referred to as stock, for example in relation to US companies). Shares in a company give to the holders, known as shareholders, rights in relation to that company such as to vote, to receive dividends and to a return of capital. Holders of shares in a company own that company and the company, not its shareholders, owns the company's assets. roles

   Offering employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. flexible workingA working arrangement which is different to the normal working pattern. For example, it might involve working fewer or different hours, or working from home on certain days. such as part-time work and job sharing can save money and potentially make members of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. more productive. However, care needs to be taken to make sure this is something employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. want and agree to, as it is usually not possible to change an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.'s terms of employment without their agreement. For how to go about this, see Process for changing employee contracts.

3. Ask for volunteers

   Asking for employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. to volunteer for redundancyWhen a staff member is dismissed because his role is no longer needed. or early retirement can be very effective (see Q&A 36 for further information about voluntary redundancyWhen a staff member is dismissed because his role is no longer needed. and Retirement process for more information about retirement).

4. Cut overtime or reduce pay or expensive benefits

   Reducing or ending overtime for employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. can reduce costs which may remove the need for redundanciesWhere staff members are dismissed because their role will no longer exist with the employer. . Pay cuts or changes to benefit schemes which are expensive for your business can all help avoid redundanciesWhere staff members are dismissed because their role will no longer exist with the employer. . Be very careful with these sorts of changes as they will usually be very unpopular with your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.. If you are considering this, it is important to check your employment contracts first to make sure that this is possible; you will often need the agreement of your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. to effect sweeping changes to their contracts. See Process for changing employee contracts for how to go about this.

5. Pause recruitment of external candidates

   Avoiding taking on new staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. and focusing on retraining current staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. instead so that they can cover wider jobs within the business, which can often save money and boost morale

6. Temporary lay-offs

   Temporarily laying off staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. or placing them on short-time working where there is a temporary lack of work available. However, you must ensure that the employment contract allows for this to happen before taking this step.

7. End the contracts of temporary or contract staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer.

   See Ending contracts with temporary/fixed term employees and following.

You can only make employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. redundant in the following situations:

1. You are going to stop carrying on the business in which the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. was employed, either entirely or in the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.’s particular workplace.

   For example, if a coffee shop shuts down because it is not making enough money, all of the employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. who work at the coffee shop could be made redundant. If the coffee shop business has two branches and decides to shut one branch because it is not making enough money, the jobs of the employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. in that branch could be made redundant.

2. The business either no longer needs, or has less of a need for employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. to carry out the work the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. does, either overall or in the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.'s particular workplace.

   For example, you decide that your coffee shop business is going to stop serving hot food because it is not profitable, although it will continue to serveTo deliver or send documents to be used in court proceedings to someone in a way that complies with court rules. sandwiches and cakes. Currently you have three baristas and one chef working in each of your shops. You decide that because of the change, you will no longer need a chef who is dedicated to the preparation of food; the baristas can cover the preparation of sandwiches and cakes. You can make the chef roles redundant, because your requirement for employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. to do the type of work that they do has diminished.

   There will also be a redundancyWhen a staff member is dismissed because his role is no longer needed. if you still need employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. to do a particular type of work, but for fewer hours than before. For example, if you decided you would only serveTo deliver or send documents to be used in court proceedings to someone in a way that complies with court rules. hot food at breakfast time rather than all day, so sought to reduce the chef's hours from 8 hours to 2 hours per day, there would be a redundancyWhen a staff member is dismissed because his role is no longer needed. if they refuse.

For information about the process you need to follow to make employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. redundant, see Q&A 41 and following.

Concerns about an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.'s performance or conduct should not be treated as a redundancyWhen a staff member is dismissed because his role is no longer needed. and should be dealt with through escalating disciplinary proceedings and potentially dismissal, as appropriate; see Q&A 15 and following for further information.

If you are selling all or part of your business, or restructuring it so that employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. will be working for a new employerA person or business hiring one or more staff members. (including another group companyIn relation to a company, another company which is a parent company (as defined elsewhere in this glossary) or subsidiary (also as defined elsewhere in this glossary) of that company or which is a subsidiary of any parent company of that company.), you should consider transferring employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.' contracts to the other business rather than making them redundant. For further information about this, see TUPE transfers.

The cost of redundanciesWhere staff members are dismissed because their role will no longer exist with the employer. depends on whether or not your business offers an enhanced redundancyWhen a staff member is dismissed because his role is no longer needed. package to employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.. If your business does offer an enhanced redundancyWhen a staff member is dismissed because his role is no longer needed. package, the cost of redundanciesWhere staff members are dismissed because their role will no longer exist with the employer. will be dependent on the package you have in place.

If you do not have an enhanced redundancyWhen a staff member is dismissed because his role is no longer needed. package, the cost of making employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. redundant depends upon how long they have been employed by the business, how old they are and how much they earn:

1. If the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. has been employed for less than two years, they will not be eligible for redundancyWhen a staff member is dismissed because his role is no longer needed. pay; this means you can make them redundant and not have to give them any payment packet at all, unless their contract says otherwise, (although you would still have to pay them their normal wage during any notice period(1) The length of time in advance which a notice must be given before it can take effect (2) The requirement to inform employees that they are being dismissed a certain amount of time in advance of their last day of employment. ).

2. If the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. has been continuously employedHow long a person has been employed without a break lasting at least a week. Time off work whilst still employed (eg annual leave, sick leave etc) does not count as a break. by you for two years or more, they will be eligible for redundancyWhen a staff member is dismissed because his role is no longer needed. pay. Legal minimum redundancyWhen a staff member is dismissed because his role is no longer needed. payments are relatively small (capped at £21,000 – usually much less). See Q&A 59 and following for how to calculate redundancyWhen a staff member is dismissed because his role is no longer needed. payments.

You can avoid making a redundancy paymentMoney paid to a staff member because he is being made redundant. if you offer the redundant employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. an alternative job which they accept (or if they refuse to accept a suitable new job, and the refusal was unreasonable). For more information on re-deploying redundant employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work., see Q&A 38 and following.

No. If you are dismissing somebody because your business no longer needs or cannot afford staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer., there will be a redundancyWhen a staff member is dismissed because his role is no longer needed. and your employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. will be entitled to a redundancy paymentMoney paid to a staff member because he is being made redundant. if they are eligible for one. You cannot decide, in these circumstances, that you would prefer to treat the situation as a dismissal for other reasons in order to avoid having to make a redundancy paymentMoney paid to a staff member because he is being made redundant.. If you do so, you will open yourself up to the possibility of a claim for unfair dismissalWhen an employee is dismissed without good reason or without following the proper procedure. Tribunal awards for unfair dismissal are up to one year's gross pay, currently capped at £93,878. being brought against you.

It should be borne in mind that the legal minimum for redundancyWhen a staff member is dismissed because his role is no longer needed. payments is relatively small (capped at £21,000) – usually much less, unless your employment contracts require you to pay more) (see Q&A 59 and following for further information about redundancyWhen a staff member is dismissed because his role is no longer needed. payments), whereas the potential cost of an unfair dismissal claimA legal claim brought by an employee who has been dismissed without good reason or without following the proper procedure. is much greater (compensation is split into a 'basic' award and a 'compensatory' award, which is capped at £115,115). Therefore, even if you do have to make a redundancy paymentMoney paid to a staff member because he is being made redundant., this is likely to be preferable to losing a claim for unfair dismissalWhen an employee is dismissed without good reason or without following the proper procedure. Tribunal awards for unfair dismissal are up to one year's gross pay, currently capped at £93,878..

If your employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. is on a temporary contract which expires at the end of a fixed period of time or when a certain event happens, and you do not renew it because you no longer need or cannot afford to keep the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work., this counts as a redundancyWhen a staff member is dismissed because his role is no longer needed.. The employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. will be entitled to a redundancy paymentMoney paid to a staff member because he is being made redundant. if they are otherwise eligible for one (eg they have been continuously employedHow long a person has been employed without a break lasting at least a week. Time off work whilst still employed (eg annual leave, sick leave etc) does not count as a break. by you for two or more years) (see Q&A 59 for information about redundancyWhen a staff member is dismissed because his role is no longer needed. payments). It makes no difference if the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. knew at the outset that they would only be required for a specific period.

If the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. is covering for an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. who is ill or on secondment, for example, and the contract is brought to an end because the original member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. returns or because somebody else is offered the job as a permanent replacement, this will not count as a redundancyWhen a staff member is dismissed because his role is no longer needed.. However, it will still count as a dismissal, so you need to ensure you are following the correct procedures. This is also the case if the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. is on a temporary contract to cover for another individual who is on maternity, adoption or shared parental leaveA process by which certain members of staff who are parents of a newborn or recently adopted child can share a period of leave from work to care for their child, provided certain criteria are met. During this time, they will be entitled to the benefit of all terms in their contract of employment (except remuneration terms) and afterwards they are entitled to return to work. and subsequently returns, as long as the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. was clearly informed in advance that their contract would come to an end in these circumstances.

For further information about ending contracts which are for a limited term, see Q&A 83 and following.

If an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. volunteers for redundancyWhen a staff member is dismissed because his role is no longer needed., you can simply select them for redundancyWhen a staff member is dismissed because his role is no longer needed. without going through a potentially difficult selection process, which you are required to complete otherwise (see Q&A 41 and following for how to carry out a redundancyWhen a staff member is dismissed because his role is no longer needed. selection process). Bear in mind that you do not have to select an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. for redundancyWhen a staff member is dismissed because his role is no longer needed. simply because they have volunteered (eg if you do not want to lose experienced staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. members).

However, bear in mind that when an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. volunteers to be made redundant, they are still entitled to a redundancy paymentMoney paid to a staff member because he is being made redundant. if they are eligible for one (see Q&A 59 for when redundancyWhen a staff member is dismissed because his role is no longer needed. payments have to be made).

If you are going to offer voluntary redundancyWhen a staff member is dismissed because his role is no longer needed., make sure that you extend the offer to your entire workforce. You must not put pressure on older members of your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. to volunteer for redundancyWhen a staff member is dismissed because his role is no longer needed., or you will risk claims for age discriminationTreating someone differently directly or indirectly because of their age, disability, gender reassignment, marriage or civil partnership status, being pregnant and/or being on maternity leave, race, religion or belief, sex or sexual orientation..

Yes, as long as the fact that the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. is pregnant or on leave is not the reason you have selected them for redundancyWhen a staff member is dismissed because his role is no longer needed., and you offer suitable alternative employment if you can; see Q&A 41 and following for further information about the process you need to follow in order to select somebody for redundancyWhen a staff member is dismissed because his role is no longer needed..

Note that employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. who are pregnant or on maternity, adoption or shared parental leaveA process by which certain members of staff who are parents of a newborn or recently adopted child can share a period of leave from work to care for their child, provided certain criteria are met. During this time, they will be entitled to the benefit of all terms in their contract of employment (except remuneration terms) and afterwards they are entitled to return to work. are entitled to additional protections. This includes the right to be offered suitable alternative employment in priority to other employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. who are not pregnant or on family-related leave. This means that if there is a role that is potentially suitable for two employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. who are to be made redundant, one of whom is pregnant or on family-related leave, you must first offer it to the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. who is pregnant or on family-related leave.

A pregnant employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. is protected from the date you are informed of their pregnancy until 18 months after the first day of the expected week of childbirthThe week, beginning with midnight between Saturday and Sunday, in which it is expected that a child will be born. (or for 18 months from the exact date of childbirth if they have notified you of this date before they finish maternity leaveA period of leave from work available to pregnant women and women who have recently given birth, during which they are still entitled to the benefit of all terms in their contract of employment (except remuneration terms), and after which they are entitled to return to work.). Note your employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. will be entitled to the same length of protection if they have a stillbirth after 24 weeks of pregnancy. An employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. who is on adoption leaveA period of leave from work available to certain members of staff who have adopted a child through an adoption agency or who have had a child through a surrogacy arrangement, during which they are still entitled to the benefit of all terms in their contract of employment (expect remuneration terms) and after which they are entitled to return to work. or shared parental leaveA process by which certain members of staff who are parents of a newborn or recently adopted child can share a period of leave from work to care for their child, provided certain criteria are met. During this time, they will be entitled to the benefit of all terms in their contract of employment (except remuneration terms) and afterwards they are entitled to return to work. is protected for a period of 18 months from the date of the child's placement with them, the date the child enters Great Britain (in the case of an overseas adoption) or the date of the child's birth in the case of shared parental leaveA process by which certain members of staff who are parents of a newborn or recently adopted child can share a period of leave from work to care for their child, provided certain criteria are met. During this time, they will be entitled to the benefit of all terms in their contract of employment (except remuneration terms) and afterwards they are entitled to return to work.. Note that in the case of shared parental leaveA process by which certain members of staff who are parents of a newborn or recently adopted child can share a period of leave from work to care for their child, provided certain criteria are met. During this time, they will be entitled to the benefit of all terms in their contract of employment (except remuneration terms) and afterwards they are entitled to return to work., the protected period will only apply if the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. has taken at least six weeks' consecutive shared parental leaveA process by which certain members of staff who are parents of a newborn or recently adopted child can share a period of leave from work to care for their child, provided certain criteria are met. During this time, they will be entitled to the benefit of all terms in their contract of employment (except remuneration terms) and afterwards they are entitled to return to work..

If there is no suitable available vacancy, then the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. can be made redundant; the family-leave period will also end. However, you will have to pay the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. for their notice period(1) The length of time in advance which a notice must be given before it can take effect (2) The requirement to inform employees that they are being dismissed a certain amount of time in advance of their last day of employment. ; you must also provide a written statement of the reasons for which the employment is being brought to an end. The employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. will also be entitled to a redundancy paymentMoney paid to a staff member because he is being made redundant. if they are eligible for one; see Q&A 59 for when redundancyWhen a staff member is dismissed because his role is no longer needed. payments must be made and how to calculate them.

See Q&A 38 for how to tell whether the job you offered is a suitable alternative.

Yes. It might be that there is another role within the business that needs to be filled and could be filled by an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. who would otherwise be redundant, or it might be that the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. could do their current role from a new location (eg if you are closing one of a number of branches and could avoid redundanciesWhere staff members are dismissed because their role will no longer exist with the employer. by moving staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. to a vacancy in a different branch). See Q&A 39 for information about how to go about doing this.

Redeploying redundant employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. within the business is often a good idea and should always be considered because:

1. it is likely to be of benefit to your business to keep employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. who know the business and have experience working there, and boost morale because staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. members will see the business doing everything it can to keep their colleagues;

2. offering alternative employment can mean that you do not have to make redundancyWhen a staff member is dismissed because his role is no longer needed. payments to the employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. who have been redeployed; and

3. if alternative employment is available, you should offer it in order to be fair and to do all you can to avoid redundanciesWhere staff members are dismissed because their role will no longer exist with the employer. .

It is to be noted that you must offer suitable alternative employment to those who are pregnant or on maternity, adoption or shared parental leaveA process by which certain members of staff who are parents of a newborn or recently adopted child can share a period of leave from work to care for their child, provided certain criteria are met. During this time, they will be entitled to the benefit of all terms in their contract of employment (except remuneration terms) and afterwards they are entitled to return to work., and for a period of time after their leave finishes. This means that if there is a role that is potentially suitable for two employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. who are to be made redundant, one of whom is on family-related leave, you must first offer it to the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. who is on family-related leave. See Q&A 37 for further guidance.

There are two ways you can go about redeploying your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.:

1. Make the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. redundant and offer them an alternative job during their notice period(1) The length of time in advance which a notice must be given before it can take effect (2) The requirement to inform employees that they are being dismissed a certain amount of time in advance of their last day of employment.

   If they accept, you will not need to make a redundancy paymentMoney paid to a staff member because he is being made redundant. to them. If they do not accept but the job you offered was a reasonable alternative to their current role, you still will not have to make a redundancy paymentMoney paid to a staff member because he is being made redundant.. See Q&A 62 for how to go about this in practice and how to tell whether the job you offered is a suitable alternative.

2. Move the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. to another role and make that employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. redundant instead

   You could consider moving an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. whose current role is redundant to a role that is being carried out by another member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer., and make that other member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. redundant instead. This is known as bumping; see Q&A 62 for further information about how to do this.

Yes. There is nothing to prevent you and an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. having discussions to agree the terms of their departure. Such discussions can be helpful when you are concerned that an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. may later try to bring a claim against you or if you wish to draw a line under matters quickly.

You and your employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. can enter into a legally binding agreement under which they waiveTo give up or abandon a legal right. the right to bring a legal claim against you, usually in return for some form of payment.

However, you need to approach both discussions and the drafting of any such agreement with care in order to ensure it will bind your employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.; see Q&A 112 for how to go about this.

Before making employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. redundant, you should consider all other possible alternatives: see Q&A 31 for examples of these. RedundanciesWhere staff members are dismissed because their role will no longer exist with the employer. should be your last resort.

If it becomes necessary to make employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. redundant, you must follow the correct procedure; this is particularly important if the employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. you are likely to make redundant have been continuously employedHow long a person has been employed without a break lasting at least a week. Time off work whilst still employed (eg annual leave, sick leave etc) does not count as a break. by you for two years or more. If you do not follow the correct procedure, these employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. could bring unfair dismissalWhen an employee is dismissed without good reason or without following the proper procedure. Tribunal awards for unfair dismissal are up to one year's gross pay, currently capped at £93,878. claims against you. See Staff resignations and retirement for how the law of unfair dismissalWhen an employee is dismissed without good reason or without following the proper procedure. Tribunal awards for unfair dismissal are up to one year's gross pay, currently capped at £93,878. is likely to change under the Employment Rights Bill.

However, it is best practice to conduct a fair and transparent process even if your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. have been employed for under two years, as doing so will better maintain morale, and generally help your business preserve structure and good practice during a difficult period. In addition, employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. can potentially bring discriminationTreating someone differently directly or indirectly because of their age, disability, gender reassignment, marriage or civil partnership status, being pregnant and/or being on maternity leave, race, religion or belief, sex or sexual orientation. claims against you regardless of their length of service, and following the proper process will help avoid this.

ACASAdvisory, Conciliation and Arbitration Service. A free service providing information and advice on workplace relations and employment law to both employers and employees. recommends putting in place a redundancyWhen a staff member is dismissed because his role is no longer needed. plan setting out the steps you will take at each stage of the process and to help you to explain your proposals to staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer..

The process you should follow is:

1. inform your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. that the business is about to go through a redundancyWhen a staff member is dismissed because his role is no longer needed. process and continue to consult with them throughout the process (see Q&A 43 for further information about how to do this properly);

2. make a provisional decision about which employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. are to be made redundant by using a fair, objective and transparent system, making sure not to discriminate (see Q&A 44 and following for further information about how to do this);

3. inform employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. who have been selected for redundancyWhen a staff member is dismissed because his role is no longer needed. and give them a genuine opportunity to challenge their selection and consider alternatives (see Q&A 54), including considering them for other suitable jobs within the business (see Q&A 62);

4. if redundancyWhen a staff member is dismissed because his role is no longer needed. cannot be avoided, ensure you give appropriate notice (see Q&A 74), and respect the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.'s right to look for alternative work during the notice period(1) The length of time in advance which a notice must be given before it can take effect (2) The requirement to inform employees that they are being dismissed a certain amount of time in advance of their last day of employment. (see Q&A 66); and

5. ensure that those employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. who are entitled to them are paid the appropriate redundancyWhen a staff member is dismissed because his role is no longer needed. payments (see Q&A 59).

You can use Redundancy toolkit for a how-to guide and all of the relevant documents you may need.

You should ensure that staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. who have the potential to be affected by forthcoming redundanciesWhere staff members are dismissed because their role will no longer exist with the employer. are made aware of the situation as soon as possible. Affected staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. will include not just those who might be made redundant, but also those who will be impacted by the process. For most small businesses, this will usually mean all staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. in the business should be notified. You can use Redundancy - Letter warning of proposed redundancies to do this.

Thereafter, it is important that you keep those employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. who have been selected for redundancyWhen a staff member is dismissed because his role is no longer needed. as up to date as possible at each stage of the process and ensure that you actively consult with them and listen to their input, even if your business is very small. If you do not consult properly, you run the risk that the process will be deemed unfair and this could lead to legal claims being brought against you by employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.. On a more practical level, consulting with staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. at an early stage can increase the chances of finding alternative jobs within the business for redundant employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. and will also help you identify whether any of your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. wish to volunteer for redundancyWhen a staff member is dismissed because his role is no longer needed..

Consultation must be meaningful (ie you should get feedback from your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. on your proposals and consider any suggestions they put forward). You should therefore discuss alternatives to redundanciesWhere staff members are dismissed because their role will no longer exist with the employer. , how the impact of any redundanciesWhere staff members are dismissed because their role will no longer exist with the employer. could be reduced, any restructuring plans and what your selection process will be. ACASAdvisory, Conciliation and Arbitration Service. A free service providing information and advice on workplace relations and employment law to both employers and employees. recommends that your consultations are one-to-one, rather than in groups. In addition to helping employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. feel heard and giving you the chance to spot (and tackle) problems early on, these consultations can be a useful way to get ideas about alternative ways of dealing with your situation, other than redundancyWhen a staff member is dismissed because his role is no longer needed.. There is no requirement for consultation to take place in person, so provided your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member agrees, you can conduct it remotely (eg if your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. are working from home during the coronavirus pandemic).

If your business is proposing to make 20 or more employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. redundant within 90 days, you are required to inform and consult with the employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.' trade union or employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. representatives, in addition to the normal requirements of consulting with staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. individually. The rules surrounding such large-scale redundanciesWhere staff members are dismissed because their role will no longer exist with the employer. are outside the scope of this service and it is recommended that you seek legal advice if you will be making them. For access to a specialist lawyer in a few simple steps, you can use our Ask a Lawyer service.

If you are closing a whole workplace, you can simply make all the employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. who work there redundant.

However, where (as is common) you do not need to make all employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. redundant, you must consider creating a pool of employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. from which to choose. You cannot usually simply select a particular employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. for redundancyWhen a staff member is dismissed because his role is no longer needed. at the outset. If you fail to think at all about how to make a pool for redundancyWhen a staff member is dismissed because his role is no longer needed., it is highly likely that any subsequent redundanciesWhere staff members are dismissed because their role will no longer exist with the employer. will amount to unfair dismissals and you may face claims from your former staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. for compensation as a result. See Q&A 45 for guidance on how to create a redundancyWhen a staff member is dismissed because his role is no longer needed. pool.

Once you have created a redundancyWhen a staff member is dismissed because his role is no longer needed. pool, you need to apply selection criteria to its members in order to choose who will be made redundant from within the pool. Your selection criteria are important as they will help you to avoid inadvertently discriminating against anyone. See Q&A 47 for guidance on the sort of criteria you can and cannot use, and Redundancy - Selection criteria form.

The usual process is to apply the criteria by giving each pooled employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. a numerical score. The employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. with the lowest scores are then typically selected for redundancyWhen a staff member is dismissed because his role is no longer needed.. See Q&A 51 for more information on this, including what to do when two employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. have the same score.

It is very important to take care in creating your redundancyWhen a staff member is dismissed because his role is no longer needed. pool. If you fail to think at all about how to make your pool, it is highly likely that any redundanciesWhere staff members are dismissed because their role will no longer exist with the employer. will amount to unfair dismissals and you may face claims from your former staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. for compensation as a result.

If you already have a redundancyWhen a staff member is dismissed because his role is no longer needed. procedure or policy in place, you should normally adopt the approach that has been set out in that for creation of a redundancyWhen a staff member is dismissed because his role is no longer needed. pool.

If you do not have a policy in place, there are no hard and fast rules about how to create the pool; you must simply make sure you apply your mind to the matter and genuinely try to create a pool from which you can make a fair and reasonable selection. This gives you the flexibility to create a wide pool from which you can draw less capable employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work., allowing you to keep key employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. where appropriate.

If you have more than one employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work., be very wary of creating a pool of one. It will usually be unfair to that employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. as the creation of the pool essentially decides the whole redundancyWhen a staff member is dismissed because his role is no longer needed. process before they have had a chance to engage. If you are considering a pool of one, you must consult with the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. concerned before you decide the pool so that they have a genuine opportunity to influence the outcome.

You should start by including the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. or employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. whose role is to be made redundant.

You should then consider adding to this additional groups of employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.; see Q&A 46.

Once you have created a redundancyWhen a staff member is dismissed because his role is no longer needed. pool, you will need to carefully and consistently apply selection criteria in order to choose who from that pool should be made redundant. See Q&A 47 for how to do this and Redundancy - Selection criteria form.

You should start by including the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. or employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. whose role is to be made redundant.

You should then consider adding to this additional groups of employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.:

1. All employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. who carry out the same work as the redundant post(s).

   Example: Less work is required stacking shelves on a shop floor because the business is going to rent out half its premises to another business, so the shelf stacking jobs in that half are to be made redundant. Every employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. on the shop floor whose job it is to stack shelves should be added to the pool.

   Example: you have a team of four account managers assigned to their own clients. The business loses most of the clients managed by one account manager, due to an economic downturn. So long as clients can be switched between account managers without losing their custom, your redundancyWhen a staff member is dismissed because his role is no longer needed. pool should contain all four account managers, not just the one with no clients left.

2. All employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. whose jobs are similar to the redundant post(s) in terms of skills, quality and aptitude.

   Example: If the jobs stacking shelves on a shop floor are made redundant, employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. who work loading stock into the warehouse at the back of the shop should also be added to the pool. This is because dealing with stock in a warehouse requires similar skills and aptitude as stacking shelves on the shop floor; they are similar jobs.

3. All employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. whose work is interchangeable with that of the redundant post(s)

   Work is interchangeable when the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. in the redundant post could swap jobs with another employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. and perform their job, either immediately or after some small amount of training.

   Example: you employ six people in your warehouse, three truck drivers and three people who load the stock into the warehouse. The drivers could perform the job of the stock loaders if asked to, whereas the stock loaders cannot perform the job of the drivers because they do not have HGV licences.

   If you want to make one of your drivers redundant, you should include all of the stock loaders in the pool, as a driver could step in and replace a stock loader if they were made redundant.

   On the other hand, if you want to make your stock loaders redundant but keep your drivers, you should not place any of the drivers in the pool. This is because if a driver was made redundant, a stock loader could not shift across and replace them.

4. All employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. who could be bumped (ie whose work the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. in the redundant post could take over)

   Consider including employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. who could be bumped in your redundancyWhen a staff member is dismissed because his role is no longer needed. pool. These are employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. who are doing a job which the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. whose post is being made redundant has the experience and capability to do instead. This may not always be appropriate (mostly depending on the disparity between the two jobs) but it is something you should consider where you have a senior employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. whose job is being made redundant and could place them in a more junior role and make that employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. redundant instead.

See Q&A 45 for what to do if you have looked at all these groups and think you might still end up with a pool of one.

Once you have created a redundancyWhen a staff member is dismissed because his role is no longer needed. pool (see Q&A 45 and following for how to do this), you will need to apply selection criteria in order to choose who from that pool should be made redundant.

If you have a redundancyWhen a staff member is dismissed because his role is no longer needed. agreement or policy, you should first check this to see whether it contains pre-agreed selection criteria. If it does, you should use these criteria (although you should check that they comply with the guidelines set out in Q&A 48).

If you do not have pre-agreed criteria, you will need to come up with some in order to select individuals for redundancyWhen a staff member is dismissed because his role is no longer needed.. You should be honest and open with employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. about the criteria you are using from the beginning of the process. Do not add extra criteria or change criteria part way through the process. You can choose what criteria you want to apply, but there are considerations to bear in mind when choosing them. ACASAdvisory, Conciliation and Arbitration Service. A free service providing information and advice on workplace relations and employment law to both employers and employees. recommends that you consult your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. about what criteria you use.

See Redundancy - Selection criteria form and Q&A 48 for information about how to choose your criteria.

Some broad guidelines to follow when choosing selection criteria are set out below; see Q&A 49 for criteria that are commonly used.

1. Use more than one criterion

   Usually, you should apply more than one criterion to be fair and your selection process will require you to balance employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.' scores in relation to each of the criteria that have been used (see Q&A 51 for further information about applying criteria).

2. Criteria should be clear and capable of assessment based on facts, not opinion

   Ensure that the criteria are clear and unambiguous. It must be possible for you to factually assess whether an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. scores well under a criterion or not; the criteria cannot just require you to give your personal opinion.

   For example, criteria such as 'attitude to work', 'those who would keep the companyA private company limited by shares incorporated and registered in England and Wales. viable' or those who are 'committed' are likely to be too vague and subjective and therefore unacceptable. Criteria such as sales figures and attendance record can be measured factually and are acceptable.

3. Criteria must not be discriminatory

   Do not choose criteria expressly based on age, disabilityA physical or mental impairment which has a substantial or long-term effect on a person’s ability to carry out normal day to day activities., gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex or sexual orientation as if you do so you could be discriminating against certain employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work..

   Further, be careful that your criteria do not affect some groups of employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. with these characteristics more than others. This can still amount to discriminationTreating someone differently directly or indirectly because of their age, disability, gender reassignment, marriage or civil partnership status, being pregnant and/or being on maternity leave, race, religion or belief, sex or sexual orientation. if you do not have a real business reason for those criteria.

   For example, criteria like last in, first out are highly likely to be discriminatory. You could be discriminating on grounds of age, or against women (who statistically have shorter periods of employment than men as they are more likely to take breaks for family reasons).

4. Criteria must not punish employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. who have asserted their rights against you

   You must not use criteria which mean that you choose an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. for redundancyWhen a staff member is dismissed because his role is no longer needed. because they have asserted a legal right (such as demanding the minimum wage) or done something which they are legally required to do (such as jury service).

ACASAdvisory, Conciliation and Arbitration Service. A free service providing information and advice on workplace relations and employment law to both employers and employees. recommends consulting with your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. about your selection criteria.

Set out below are some common criteria that employersA people or businesses hiring one or more staff members. use and some matters to be aware of (see Q&A 50 for information about criteria you must avoid). See Q&A 51 for how to apply your selection criteria to the redundancyWhen a staff member is dismissed because his role is no longer needed. pool.

1. Performance

   This is generally acceptable provided you have tangible evidence (such as sales figures or client/customer satisfaction scores) to back up your assessment, rather than simply relying on unsubstantiated opinion.

2. Disciplinary history

   This will usually be acceptable but as best practice, you should avoid taking into account expired warnings and you must only use disciplinary issues as evidence when there was actually some disciplinary action taken (ie not when there was simply an investigation which resulted in no further action).

3. Health and attendance

   This will usually be acceptable if you have evidence to back it up, such as sickness absence records.

   However, you must be very careful if there is any chance that sickness absences have been because of a disabilityA physical or mental impairment which has a substantial or long-term effect on a person’s ability to carry out normal day to day activities., as to select somebody because they have a disabilityA physical or mental impairment which has a substantial or long-term effect on a person’s ability to carry out normal day to day activities. is discriminatory. A disabilityA physical or mental impairment which has a substantial or long-term effect on a person’s ability to carry out normal day to day activities. is a physical or mental impairment which has a substantial and long-term effect on a person’s ability to carry out normal day-to-day activities, which in the workplace may include carrying objects, writing, driving, following instructions and communicating with colleagues.

   Some examples of disabilities are cancer, multiple sclerosis, sight-impairment, learning difficulties, autism, depression and chronic fatigue/ME; addiction to drugs or alcohol will not count as a disabilityA physical or mental impairment which has a substantial or long-term effect on a person’s ability to carry out normal day to day activities.. Therefore, it would be legitimate to select somebody because they have been absent with colds on numerous occasions but not if they have been absent because of a condition such as depression. Caution should therefore be exercised here. For a list of common disabilities, see List of common disabilities.

4. Relevant skills, experience and qualifications

   ACASAdvisory, Conciliation and Arbitration Service. A free service providing information and advice on workplace relations and employment law to both employers and employees. recommends considering these three criteria together to help avoid any inadvertent discriminationTreating someone differently directly or indirectly because of their age, disability, gender reassignment, marriage or civil partnership status, being pregnant and/or being on maternity leave, race, religion or belief, sex or sexual orientation. on grounds of age. For example, younger employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. might have more up-to-date qualifications, whereas older employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. are likely to have greater experience.

Yes. The following are unacceptable criteria and therefore should be avoided (see Q&A 49 for criteria that are commonly used and deemed acceptable):

1. the age of employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work., as this will usually be discriminatory;

2. duration of service, such as last in first out or first in first out, unless you have a proper business reason to justify its use, as this is more likely to affect your oldest or youngest employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. and so risks being discriminatory;

3. pregnancy (whether the fact that the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. is pregnant or has been or will be absent on maternity, paternity, adoption or shared parental leaveA process by which certain members of staff who are parents of a newborn or recently adopted child can share a period of leave from work to care for their child, provided certain criteria are met. During this time, they will be entitled to the benefit of all terms in their contract of employment (except remuneration terms) and afterwards they are entitled to return to work.) as this will be discriminatory;

4. an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.'s status as a fixed-term employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work., unless you have a real business reason for taking it into account;

5. whether an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. has taken their authorised holiday allowance or has been absent on jury service;

6. if an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. will not work for longer than they are legally required to each week, or refuses to be paid less than the minimum wage;

7. if an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. checks the health and safety compliance of the business, or is a health and safety officerIn a company: A legally defined term used to refer to the director, company secretary or managers of a company. Officers of a company have certain duties and responsibilities towards the company and can be held liable for company law breaches.;

8. whether an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. has requested flexible workingA working arrangement which is different to the normal working pattern. For example, it might involve working fewer or different hours, or working from home on certain days. ; and

9. if an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. acts as a representative for the employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. of your business or takes part in trade union activities or is a member of a trade union.

The most common approach is to use a scoring system (for example, marks out of 5 per criterion), whereby you apply the selection criteria and give each pooled employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. a numerical score. The employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. with the lowest scores are then usually selected for redundancyWhen a staff member is dismissed because his role is no longer needed..

Fairness is crucial when marking. Even if your criteria are beyond reproach, you can still apply them to individual employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. in a way which makes the redundancyWhen a staff member is dismissed because his role is no longer needed. selection process unfair. If you do this, you run the risk of unfair dismissalWhen an employee is dismissed without good reason or without following the proper procedure. Tribunal awards for unfair dismissal are up to one year's gross pay, currently capped at £93,878. claims from redundant employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.. When marking, you can use Redundancy - Selection criteria form and should bear in mind:

1. before you start scoring, plan your approach if two employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. have identical scores (see Q&A 52);

2. choose a reasonable period of assessment (see Q&A 53); and

3. do not take the same matter into account in respect of more than one criterion. For example, if one of your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. has received a verbal warning for their work for unacceptable performance, it would be unfair for you to reduce both their discipline score and their performance score.

You should make sure that you keep records of the approach you use, and the material which you have used in order to score employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. (such as personnel files and appraisal forms). See Q&A 125 for your recordkeeping obligations at the end of the redundancyWhen a staff member is dismissed because his role is no longer needed. process.

You should plan what to do if two of your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. have the same numerical redundancy scoreThe numerical score of an employee who is in a pool and is being assessed for redundancy. Typically, each employee has their scores compared and those with the lowest are made redundant.. One common method of resolving this is to set aside a particular criterion as a tie-breaker which can be applied as a deciding factor(In finance) A financier who provides finance to a business by buying the business's debts under the terms of a factoring agreement. where more than one employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. is scored equally. Provided that such a process is open, transparent and applied fairly to everyone, this is an acceptable approach to use.

However, the tie-breaking category should be decided before you start scoring pooled employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.; you cannot create additional criteria after you find out there is a tie to ensure that a favoured employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. is not selected for redundancyWhen a staff member is dismissed because his role is no longer needed..

You need to assess the employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. over a reasonable period. In particular, the period should be lengthy where the redundancyWhen a staff member is dismissed because his role is no longer needed. pool contains long-serving employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. and you will need to make allowances where an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.'s assessment period is interrupted by maternity leaveA period of leave from work available to pregnant women and women who have recently given birth, during which they are still entitled to the benefit of all terms in their contract of employment (except remuneration terms), and after which they are entitled to return to work., disabilityA physical or mental impairment which has a substantial or long-term effect on a person’s ability to carry out normal day to day activities. or other such legal absences, to ensure that all employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. are scored fairly.

To facilitate this, you can extend the assessment period for particular employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. to ensure fairness; it does not need to be the same for everyone.

For example, an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. has been with your companyA private company limited by shares incorporated and registered in England and Wales. for 10 years during which time they have rarely taken more than one or two days off per year for sickness. However, in the last three months, they contracted flu which left them run down and more prone to other illnesses for a time, leading to 15 days' absence in total. It would not be fair to assess their score under an absence criterion based on the most recent year only. You could extend your period of assessment to make their score properly reflective of their full attendance record.

After you have carried out your scoring of the redundancyWhen a staff member is dismissed because his role is no longer needed. pool (see Q&A 51 and following for how to do this) you should select the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. or employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. with the lowest scores for redundancyWhen a staff member is dismissed because his role is no longer needed.. You can use Redundancy - Provisional selection for redundancy letter to notify employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. of their selection.

EmployeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. need to be given a genuine chance to challenge their selection, so you should arrange private meetings with them before the redundancyWhen a staff member is dismissed because his role is no longer needed. has been officially confirmed and go in with an open mind about avoiding making the particular employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. redundant. See Q&A 55 for information about how to run the meeting.

You can use Redundancy - First individual consultation meeting agenda to guide the meeting and should bear in mind the following points:

1. During the meeting, you should give the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. as much information about the process as possible, including their redundancy scoresThe numerical scores of employees who are in a pool and are being assessed for redundancy. Typically, each employee has their scores compared and those with the lowest are made redundant., and a fair and genuine opportunity to express their views on the situation and challenge their scores and the selection.

2. As part of the meeting, you should discuss the potential of any alternative jobs within the business which may be available. If the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. suggests during the meeting that they would be interested in alternative jobs within the business in a specific area, take some time to pursue this option, then call another meeting to discuss your findings. See Q&A 62 for further information about how to go about re-deploying people within the business.

3. It is important for you to take written notes of the meeting as evidence of the discussions, to show that you have followed the redundancyWhen a staff member is dismissed because his role is no longer needed. procedure correctly and fully considered any points raised by your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work..

See Q&A 56 for steps to take after the meeting.

You should follow up your first individual consultation meeting (see Q&A 55) by writing to the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. to confirm what was discussed and set up the next stage of your consultation.

What this next stage looks like depends on what follow up points came out of the first meeting.

You can use Redundancy - Outcome of individual consultation meeting if:

1. there are more than a few minor points left to discuss with the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work., so you will need to set a second substantive meeting; or

2. the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. is invited to interview for another position within the business.

Once you have explored all the issues with your employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work., whether this takes one meeting or a few, you can use Redundancy - Invitation to final individual consultation meeting to set your final meeting with them and Redundancy - Final individual consultation meeting agenda to carry out a final meeting.

See Q&A 57 for information about how to inform an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. that they will be made redundant.

Once you have decided which employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. you are going to make redundant, send a notice of dismissal to each employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. which confirms that they are being made redundant, tells the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. what their notice period(1) The length of time in advance which a notice must be given before it can take effect (2) The requirement to inform employees that they are being dismissed a certain amount of time in advance of their last day of employment. is (see Q&A 79 and following for notice periods and when to give notice) and confirms whether or not the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. will be entitled to a redundancy paymentMoney paid to a staff member because he is being made redundant., and if so how much (see Q&A 59 for how to calculate redundancyWhen a staff member is dismissed because his role is no longer needed. payments). Keep a record of the date on which the notice was sent and when the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.'s employment is due to end.

For a template redundancyWhen a staff member is dismissed because his role is no longer needed. dismissal letter, see Redundancy - Notice of termination of employment.

You should ensure you are happy with your selection, because once the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. has been given formal notice of dismissal, it cannot be withdrawn unless the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. also agrees to the withdrawal; you will therefore be bound by the decision and any redundancyWhen a staff member is dismissed because his role is no longer needed. payments which come with it.

No, unless you have an existing redundancyWhen a staff member is dismissed because his role is no longer needed. policy that includes an appeals process. However, ACASAdvisory, Conciliation and Arbitration Service. A free service providing information and advice on workplace relations and employment law to both employers and employees. recommends that you allow your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. a formal opportunity to appeal. It means that any disagreements about the procedure can be flushed out at an early stage, rather than a more formal complaint or legal claim being brought against you later.

Information about the right to appeal can be included in Redundancy - Notice of termination of employment.

If your business offers an enhanced redundancyWhen a staff member is dismissed because his role is no longer needed. package, you must pay redundant employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. in accordance with this enhanced package; you should check the terms of the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.'s contract and/or the terms of your policy in order to assess the amount.

If you do not have an enhanced redundancyWhen a staff member is dismissed because his role is no longer needed. package, you must pay statutory redundancyWhen a staff member is dismissed because his role is no longer needed. pay to redundant employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. who have two years or more of continuous employmentHow long a person has been employed without a break lasting at least a week. Time off work whilst still employed (eg annual leave, sick leave etc) does not count as a break. with your business.

The amount of statutory redundancyWhen a staff member is dismissed because his role is no longer needed. pay that a business is required to pay depends on the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.'s age, length of service and pay. RedundancyWhen a staff member is dismissed because his role is no longer needed. payments are capped, so the maximum amount that a business can be required to pay is £21,, although for most employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. the amount will be much less.

To calculate the exact amount for a particular employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work., use this government calculator for statutory redundancy pay.

You must provide the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. with a written statement indicating how their redundancy paymentMoney paid to a staff member because he is being made redundant. has been calculated; for an example of how the calculation is set out, see Redundancy - Notice of termination of employment. Note that failure to provide this written statement is an offence committed by the employerA person or business hiring one or more staff members. and punishable by a fine.

You can avoid having to make redundancyWhen a staff member is dismissed because his role is no longer needed. payments by offering employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. new jobs within the business before the end of their employment. See Q&A 62 for how to go about this.

Note that you will not have to make redundancyWhen a staff member is dismissed because his role is no longer needed. payments if the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. quits or is properly summarily dismissedWhen a staff member is dismissed without notice (ie immediately). for gross misconduct Misconduct committed by a member of staff that is so serious it allows the business to dismiss him immediately without any notice or payment in lieu of notice. during their notice period(1) The length of time in advance which a notice must be given before it can take effect (2) The requirement to inform employees that they are being dismissed a certain amount of time in advance of their last day of employment. .

It is usually good practice to make a redundancy paymentMoney paid to a staff member because he is being made redundant. on the last day that the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. is employed – this is the day on which the notice period(1) The length of time in advance which a notice must be given before it can take effect (2) The requirement to inform employees that they are being dismissed a certain amount of time in advance of their last day of employment. ends. If under £30,000, the payment is tax free and there are no deductions for National InsuranceCompulsory payments which must be made by both employers and workers for the worker to qualify for certain benefits, like state pensions., so you should simply transfer the money in one, full lump sum to the bank account of the redundant employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work..

It is important to remember that you must provide the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. with a written statement indicating how their redundancy paymentMoney paid to a staff member because he is being made redundant. has been calculated; for an example of how the calculation is set out, see Redundancy - Notice of termination of employment. Note that failure to provide this written statement is an offence committed by the employerA person or business hiring one or more staff members. and punishable by a fine.

As well as a redundancy paymentMoney paid to a staff member because he is being made redundant., you also have to pay employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. for their notice period(1) The length of time in advance which a notice must be given before it can take effect (2) The requirement to inform employees that they are being dismissed a certain amount of time in advance of their last day of employment. and any other outstanding entitlements such as accrued but untaken leave, as for any employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. who leaves your business. See Q&A 74 and following for further information about notice periods and Q&A 120 for how to calculate an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.'s final pay cheque.

If you cannot afford to pay redundanciesWhere staff members are dismissed because their role will no longer exist with the employer. , you can apply to the RedundancyWhen a staff member is dismissed because his role is no longer needed. Payments Service (RPS) for assistance. The RPS will make redundancyWhen a staff member is dismissed because his role is no longer needed. payments directly to your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. (if your application is approved) but you will need to repay these payments later.

Businesses that are subject to formal insolvencyThe inability to pay debts as they become due. proceedings are not eligible to apply, and there are limits on how much will be paid out. To apply, you must show evidence that you cannot pay redundancyWhen a staff member is dismissed because his role is no longer needed. payments and that your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. are eligible for statutory redundancyWhen a staff member is dismissed because his role is no longer needed. pay. If you wish to apply, email the RPS at RPS.FA@insolvencyThe inability to pay debts as they become due..gov.ukUnited Kingdom of Great Britain and Northern Ireland setting out:

1. your name;

2. whether you are the employerA person or business hiring one or more staff members.;

3. whether you should be the main point of contact;

4. your business name and address; and

5. the number of redundanciesWhere staff members are dismissed because their role will no longer exist with the employer. .

The RPS will respond with requests for other information to check you meet the relevant criteria.

Note that you may be able to find other sources of financial support by contacting ACAS or the Business Debtline, and that you need to generally consider whether you should continue trading if you are in financial difficulty. You may wish to speak to a lawyer or accountant for advice. For access to a specialist lawyer in a few simple steps, you can use our Ask a Lawyer service.

Also note that the rules around making redundanciesWhere staff members are dismissed because their role will no longer exist with the employer. of more than 20 people at one establishment are outside the scope of this service.

If an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. accepts a job offer to return to your business after redundancyWhen a staff member is dismissed because his role is no longer needed. and continues in the new job after an initial trial period, you will not have made them redundant and they are not entitled to a redundancy paymentMoney paid to a staff member because he is being made redundant.. The job offer must be made before the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. actually leaves your business; see Q&A 64 for information about how to do this and Redundancy - Offer of alternative employment.

Your employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. also loses their entitlement to a redundancy paymentMoney paid to a staff member because he is being made redundant. if you make them a suitable job offer which they unreasonably refuse. You must discuss the job offer with the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. so that, if they do refuse, you know the reason and can gauge whether it is reasonable or not.

This does not mean that the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. is obliged to take any job that you offer them; your offer must be reasonable. See Q&A 63 for information about this.

Your employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. loses their entitlement to a redundancy paymentMoney paid to a staff member because he is being made redundant. if you make them a suitable job offer which they unreasonably refuse. There are no set rules as to exactly what job offer the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. would be unreasonable to refuse, but the following broad guidance will help:

1. Content

   The job should be in the same field as the previous one and should not involve substantially reduced duties in comparison.

2. Status

   Even where a job utilises the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.'s skills and is in the same field as the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.’s previous job, it may reasonably be refused if it brings about a significant demotion or lowering in status for the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.. This can be the case even if their pay remains the same. If, however, the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. has indicated a willingness to accept an available lower status job as an alternative to redundancyWhen a staff member is dismissed because his role is no longer needed., you should usually offer it to them.

3. Pay and benefits

   A significant drop in earnings or reduced benefits is likely to make a job unsuitable. You need to consider the whole package of pay and benefits, including overtime, bonuses, enhanced sick payPayment made by an employer to a staff member during the staff member's time off work due to illness or disability., holiday allowance, and even tips.

4. Hours

   A change in working hours (eg from night shift to day shift) might make the new job unsuitable, or a requirement to work weekends if the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. has significant preexisting responsibilities at the weekend.

5. Location

   Unless it is the nature of your industry for employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. to be moved around (for example in the construction industry), a change in workplace can mean it is reasonable for a redundant employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. to refuse the offer of a new job. This will especially be the case if the change in workplace increases the cost and time of travelling to work for the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work., or the new workplace is inconvenient for personal reasons (such as when an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. needs to remain close to home to care for their family).

   However, if you offer to facilitate the move by offering an increased salary to offset extra travelling costs and providing the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. with the ability to work from home a few days a week, this could turn the job offer into a reasonable one.

6. Prospects

   The job is unlikely to be suitable if it is only temporary, with no guarantee(1) In the context of debt, a contract where someone agrees to pay if the debtor cannot pay themselves. (2) In the context of sale of goods, a promise to a customer which is given freely (without charging extra money) that the goods they are buying will meet certain standards, and if they do not the person making the promise will do something to make up for that (eg give a refund, or repair or replace the goods). for the future.

You can use Redundancy - Offer of alternative employment.

You should make the job offer as soon as possible after the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. has been given notice of redundancyWhen a staff member is dismissed because his role is no longer needed.; they may be entitled to refuse it if you make the offer late in the day as they may, for example, have made alternative arrangements by then. Even if the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. tells you that they have no interest in a new job with the business, you should still make an offer of alternative employment if you are able to.

The offer should include the main terms of the new job including the financial prospects.

The new job must begin no more than four weeks after the end of the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.'s notice period(1) The length of time in advance which a notice must be given before it can take effect (2) The requirement to inform employees that they are being dismissed a certain amount of time in advance of their last day of employment. , and it should include a trial period of four weeks. You can agree a longer trial period if the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. needs some retraining for the role, but note that this must be agreed before they start the new job, in writing, and include the date that the retraining ends and the terms and conditions of employment that will apply to the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. after training ends.

See Q&A 65 for what to do if the new job does not work out.

If an alternative job doesn't work out after a redundancyWhen a staff member is dismissed because his role is no longer needed. process, you may have to make a redundancy paymentMoney paid to a staff member because he is being made redundant., if the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. would have been entitled to one had they not taken up the alternative job.

You must make a redundancy paymentMoney paid to a staff member because he is being made redundant. in the following circumstances:

1. if the new job differs from the old job and you find that the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. is under-performing because they are unsuited to or incapable of doing it, and you dismiss them during the trial period (which must be four weeks unless you have agreed to a longer period); or

2. if the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. quits during the trial period of the new job, for any reason, then you must treat them as though they were made redundant and refused the new job when it was offered to them. This means that if in fact the job offer was unsuitable and it would have been reasonable for them to refuse it in the first place, they will be entitled to a redundancy paymentMoney paid to a staff member because he is being made redundant..

If the dismissal is not connected to the differences between the jobs and is for something such as gross misconductUnacceptable or improper behaviour, for example, you will not have to make a redundancy paymentMoney paid to a staff member because he is being made redundant..

You must give redundant employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. who have been continuously employedHow long a person has been employed without a break lasting at least a week. Time off work whilst still employed (eg annual leave, sick leave etc) does not count as a break. for two years a reasonable amount of paid time off work during their notice period(1) The length of time in advance which a notice must be given before it can take effect (2) The requirement to inform employees that they are being dismissed a certain amount of time in advance of their last day of employment. so that they can look for other work or to undertake training for future work. EmployeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. who have not been employed for two years do not have this entitlement so you could make them take the time as annual leavePaid time off work to which members of staff are entitled each year, also known as holiday leave., but it is usually good practice to allow flexibility where possible. You are not obliged to pay employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. who take this time off more than 40% of their normal week's pay, but you may choose to. For example if they normally earn £500 per week (working 5 days per week), and they take a week off to look for other work during their notice period(1) The length of time in advance which a notice must be given before it can take effect (2) The requirement to inform employees that they are being dismissed a certain amount of time in advance of their last day of employment. , you would not have to pay them more than £200 for that week.

Note that you should always try to offer redundant employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. new jobs within the business if they are available. If they accept the job, or unreasonably refuse it, you will not have to pay them any redundancy paymentMoney paid to a staff member because he is being made redundant.. See Q&A 62 and following for further information about when and how to do this.

Yes. Although the Coronavirus Job Retention Scheme has closed, you may still use HMRC's Government Gateway to view your previous claims or to delete a claim (provided you delete it within 72 hours of making it). To access the service, you will need the Government Gateway user ID and password you use for PAYEPay as you earn; the system of income tax collection used by employers. online.

It depends.

When the Coronavirus Job Retention Scheme first opened, employersA people or businesses hiring one or more staff members. were able to claim employerA person or business hiring one or more staff members. NICs and minimum automatic enrolment employerA person or business hiring one or more staff members. pension contributions on the subsidised pay covered by grants under the scheme (although not on any top-up salary they decided to make). However, from 1 August 2020, the level of grant provided by the Government under the scheme changed and no longer included employerA person or business hiring one or more staff members. NICs and pension contributions.

Equally, under the Coronavirus Job Retention Scheme extension from 1 November 2020 and until the scheme closed on 30 September 2021, employersA people or businesses hiring one or more staff members. remained responsible for paying the applicable employerA person or business hiring one or more staff members. pensions and NI contributions.

EmployersA people or businesses hiring one or more staff members. were required to obtain their staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. members' agreement to being furloughed under the Coronavirus Job Retention Scheme, because putting them on furlough leave will have required a change to the terms of their contract. You must ensure that you keep a written record of your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member's furlough agreement for five years.

You must also keep records of your claims for six years, including the amount claimed for each staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member, the claim periods, claim reference numbers, your calculations and hours worked and not worked by staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. on flexible furlough arrangements.

Yes.

From February 2021, HMRCHis Majesty’s Revenue and Customs. The government authority which oversees tax and customs. began publishing the names and (if applicable) companyA private company limited by shares incorporated and registered in England and Wales. registration number of employersA people or businesses hiring one or more staff members. who had made claims under the scheme on or after 1 December 2020. HMRCHis Majesty’s Revenue and Customs. The government authority which oversees tax and customs. also provides an indication of the value of claims made by respective employersA people or businesses hiring one or more staff members. by reference to a banded range (eg £1 to £10,000 or £10,001 to £25,000 etc). From February 2021, employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. can also find information about claims made for them in their Personal Tax Account on HMRCHis Majesty’s Revenue and Customs. The government authority which oversees tax and customs.'s website.

In exceptional circumstances, employersA people or businesses hiring one or more staff members. can request that these details not be published if they can demonstrate that doing so would place certain individuals at a serious risk of violence or intimidation (eg a directorThe directors of a company are the individuals who make up the company's board of directors. Directors may be natural persons or companies, but each company must have at least one director who is a natural person. The board is the main decision-making body of the company. of the companyA private company limited by shares incorporated and registered in England and Wales. or an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.).

Yes, employment rights and benefits continued whilst on furlough, including the right to sick payPayment made by an employer to a staff member during the staff member's time off work due to illness or disability., annual leavePaid time off work to which members of staff are entitled each year, also known as holiday leave., maternity and other parental rights, protection against unfair dismissalWhen an employee is dismissed without good reason or without following the proper procedure. Tribunal awards for unfair dismissal are up to one year's gross pay, currently capped at £93,878. and rights to redundancyWhen a staff member is dismissed because his role is no longer needed. payments. Note that:

1. annual leavePaid time off work to which members of staff are entitled each year, also known as holiday leave. must always have been paid at your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member's full rate of pay (see Q&A 73);

2. an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. being made redundant who has been on furlough leave must have their statutory redundancyWhen a staff member is dismissed because his role is no longer needed. pay based on their usual pay and not their furlough pay (if you did not top this up) (see Q&A 59);

3. statutory notice pay must be calculated on the basis of a staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member's normal pay and not their furlough pay (if you did not top this up) (see Q&A 74); and

4. staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. members who were furloughed and who began a period of family leaveLeave taken by a member of staff in order to care for a child, including maternity, paternity, adoption, shared parental and parental leave on or after 25 April 2020 should have had both their eligibility for and rate of payment of statutory family leaveLeave taken by a member of staff in order to care for a child, including maternity, paternity, adoption, shared parental and parental leave pay (ie SMPStatutory maternity pay: A sum of money that certain employees are entitled to whilst they are on maternity leave., SPPStatutory paternity pay: A sum of money that certain employees are entitled to whilst they are on paternity leave., SAPStatutory adoption pay: A sum of money that certain employees are entitled to whilst they are on adoption leave., SShPPStatutory shared parental pay: A sum of money that certain members of staff are entitled to whilst they are on shared parental leave., parental bereavement leaveA period of leave from work available to employees following the loss of a child under 18, or a stillbirth after 24 weeks of pregnancy. This right may also be referred to as 'Jack's Law'. pay or maternity allowance) calculated on the basis of what their normal weekly earnings would have been had they not been on furlough leave. For further guidance about calculating eligibility for and rates of statutory family leaveLeave taken by a member of staff in order to care for a child, including maternity, paternity, adoption, shared parental and parental leave pay, see Maternity leave and pay, Adoption leave and pay, Paternity leave and pay, Shared parental leave and pay, or Bereavement leave. For further guidance about maternity allowance, see Maternity leave and pay.

Yes; staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. continued to accrue annual leavePaid time off work to which members of staff are entitled each year, also known as holiday leave. whilst they were on furlough leave. You may have asked your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. members to agree to amend their contracts to reduce their holiday leave entitlement for the period on which they were on furlough, but you could not reduce this below the statutory minimum, which for most staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. is 28 days at full pay.

StaffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. were able to take annual leavePaid time off work to which members of staff are entitled each year, also known as holiday leave. during furlough leave. If they did so, they must have been paid their normal full rate of pay for that time, in accordance with the Working Time Regulations.

This is where you simply pay the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. what they would have been entitled to for their notice period(1) The length of time in advance which a notice must be given before it can take effect (2) The requirement to inform employees that they are being dismissed a certain amount of time in advance of their last day of employment. , but they leave immediately. You can do this as of right if their contract says you can; if not, you must make sure you agree to it with them.

If making a payment in lieu of noticeWhen an employee who is dismissed is paid her salary for the duration of the notice period instead of being required to work until the end of that period., you should notify the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. clearly that by making the payment you are ending the employment with immediate effect.

If you dismiss a member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. without the correct notice, you will have broken the terms of their contract and they may sue you for the salary and other benefits they would have been entitled to during that time. Importantly, if you break the contract by not giving enough notice, you cannot rely on any restrictions in it afterwards which may be included to protect your business (eg a non-compete clauseA term in a staff contract forbidding them from competing with their employer's business, either by working for a competitor or setting up their own business. to prevent the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. from competing with your business or a non-dealing clauseA provision or section. Usually in a contract. to prevent them from taking your clients).

No; where you are dismissing the member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. for an act of gross misconductUnacceptable or improper behaviour, such as theft or violence, you can usually dismiss the member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. immediately and without any notice (or payment in lieu of noticeWhen an employee who is dismissed is paid her salary for the duration of the notice period instead of being required to work until the end of that period.).

You can usually dismiss a staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member immediately if it would be illegal to continue to employ them; for example, if they no longer have a right to work in the UKUnited Kingdom of Great Britain and Northern Ireland. Once you have clarified this is the case, you should pay them in lieu of their notice period(1) The length of time in advance which a notice must be given before it can take effect (2) The requirement to inform employees that they are being dismissed a certain amount of time in advance of their last day of employment. so that you do not break the law by continuing their employment.

You should check the contract to see if it tells you when the notice period(1) The length of time in advance which a notice must be given before it can take effect (2) The requirement to inform employees that they are being dismissed a certain amount of time in advance of their last day of employment. will start. If it does say, then you must follow that. If it does not say, then whether you give your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member notice verbally or in writing, the notice period(1) The length of time in advance which a notice must be given before it can take effect (2) The requirement to inform employees that they are being dismissed a certain amount of time in advance of their last day of employment. will only start from the day after they personally receive the notice.

Example: If you hand a written notice to a staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member on 2 January, their notice period(1) The length of time in advance which a notice must be given before it can take effect (2) The requirement to inform employees that they are being dismissed a certain amount of time in advance of their last day of employment. will start from the following day (3 January).

Your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member must actually receive your notice before the notice period(1) The length of time in advance which a notice must be given before it can take effect (2) The requirement to inform employees that they are being dismissed a certain amount of time in advance of their last day of employment. can start. For example, if you write to them giving them notice that you are ending their contract but they are on holiday and do not receive your letter for another two weeks, their notice period(1) The length of time in advance which a notice must be given before it can take effect (2) The requirement to inform employees that they are being dismissed a certain amount of time in advance of their last day of employment. will only start after they are back and have actually received your letter (although they do not have to have read it). In light of this you should take the following steps:

1. If you are writing to your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member to give them notice that you are ending the contract you should ideally either hand your letter to them personally, or at least send the letter in a way where you can tell that they have personally received it: for example, by email and include a read receipt. You should also ask them to confirm they have received the notice.

2. If you are giving your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member notice verbally you should follow this up with a letter which confirms that you have given them notice to end the contract and gives the reasons. You should do this as soon as possible after you have dismissed the. Or better still, give them a copy of this letter at the same time as you are dismissing them. This is to avoid any misunderstandings about what was said (and when it was said).

If you are making a payment in lieu of noticeWhen an employee who is dismissed is paid her salary for the duration of the notice period instead of being required to work until the end of that period., you must notify your employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. clearly that by making the payment you are ending their contract with immediate effect.

The employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.’s length of service is counted up to the date they leave the business at the end of their notice period(1) The length of time in advance which a notice must be given before it can take effect (2) The requirement to inform employees that they are being dismissed a certain amount of time in advance of their last day of employment. , not the date on which they are told that they are dismissed. Therefore, if you dismiss an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. who has been with the business for one year and ten months, and they have a three month notice period(1) The length of time in advance which a notice must be given before it can take effect (2) The requirement to inform employees that they are being dismissed a certain amount of time in advance of their last day of employment. , by the time they leave the business they will have been employed for two years and a month.

If you dismiss an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. with just under two years of service without notice (either because you have made a payment in lieu of noticeWhen an employee who is dismissed is paid her salary for the duration of the notice period instead of being required to work until the end of that period. or because you have dismissed them without notice), then the week-long notice period(1) The length of time in advance which a notice must be given before it can take effect (2) The requirement to inform employees that they are being dismissed a certain amount of time in advance of their last day of employment. they are entitled to by law will be automatically added to the time for which they worked when determining whether they have been employed for long enough to bring an unfair dismissal claimA legal claim brought by an employee who has been dismissed without good reason or without following the proper procedure..

Note that once a member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. has been continuously employedHow long a person has been employed without a break lasting at least a week. Time off work whilst still employed (eg annual leave, sick leave etc) does not count as a break. for two years, they gain additional rights; in particular, the right to bring a claim for unfair dismissalWhen an employee is dismissed without good reason or without following the proper procedure. Tribunal awards for unfair dismissal are up to one year's gross pay, currently capped at £93,878. if you do not have a fair reason or follow a proper process when dismissing them. See Staff resignations and retirement for how the law of unfair dismissalWhen an employee is dismissed without good reason or without following the proper procedure. Tribunal awards for unfair dismissal are up to one year's gross pay, currently capped at £93,878. is likely to change under the Employment Rights Bill.

You may not want an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. to come into work after you have told them you are ending their contract. For example, you may be concerned about them having access to sensitive or confidential data which they may use after they have left; you may worry that their presence will affect the morale of remaining staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer.; or you may be concerned that their standards will slip in the knowledge that they are leaving.

You may be able to agree with the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. that they will leave early, particularly if they have been able to find a new job. It is always worth checking with the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member what they wish to do.

Otherwise, you have the following two options if you do not want them to continue working:

1. make a payment in lieu of noticeWhen an employee who is dismissed is paid her salary for the duration of the notice period instead of being required to work until the end of that period. (see Q&A 75); or

2. put the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. on garden leaveWhen, during the notice period at the end of employment, a member of staff is kept on full pay and is technically still employed, but does no work, has no access to company property or information, and cannot work for anyone else. (see Q&A 82).

Garden leaveWhen, during the notice period at the end of employment, a member of staff is kept on full pay and is technically still employed, but does no work, has no access to company property or information, and cannot work for anyone else. is effectively a paid leave of absence during which the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. continues to be paid and to receive any benefits due under their contract, but they are not required or permitted to attend work or have access to your records, business systems or customers. Garden leaveWhen, during the notice period at the end of employment, a member of staff is kept on full pay and is technically still employed, but does no work, has no access to company property or information, and cannot work for anyone else. might be suitable where you are fearful that the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. might leak confidential information or damage your relationship with clients.

Unlike when a payment in lieu of noticeWhen an employee who is dismissed is paid her salary for the duration of the notice period instead of being required to work until the end of that period. is made, an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. who is on garden leaveWhen, during the notice period at the end of employment, a member of staff is kept on full pay and is technically still employed, but does no work, has no access to company property or information, and cannot work for anyone else. still has an ongoing contractual obligation of confidentiality to your business until their garden leaveWhen, during the notice period at the end of employment, a member of staff is kept on full pay and is technically still employed, but does no work, has no access to company property or information, and cannot work for anyone else. ends. The downside is that you will usually still have to give the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. full pay and benefits for the duration of the garden leaveWhen, during the notice period at the end of employment, a member of staff is kept on full pay and is technically still employed, but does no work, has no access to company property or information, and cannot work for anyone else. period which can be expensive.

You will not always be able to place an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. on garden leaveWhen, during the notice period at the end of employment, a member of staff is kept on full pay and is technically still employed, but does no work, has no access to company property or information, and cannot work for anyone else.; it depends on their contract and on the kind of work they do.

Check the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.'s contract to see whether it contains a clauseA provision or section. Usually in a contract. which says they can be put on garden leaveWhen, during the notice period at the end of employment, a member of staff is kept on full pay and is technically still employed, but does no work, has no access to company property or information, and cannot work for anyone else.. If it does, you will usually be able to rely on it, though you should bear in mind that sometimes such clausesProvisions or sections. Usually in a contract. can be challenged, most commonly for covering too long a period.

If there is no clauseA provision or section. Usually in a contract. in the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.'s contract, you may be able to agree to garden leaveWhen, during the notice period at the end of employment, a member of staff is kept on full pay and is technically still employed, but does no work, has no access to company property or information, and cannot work for anyone else. with them. Many members of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. will find the prospect of staying at home whilst still being paid attractive and so are likely to readily agree, but some may not, particularly if they are reliant on earning commission or if time away from work is likely to damage them professionally. It is important that any agreement reached is properly recorded because if it is not, you will not be able to enforce it easily.

Finally, it is sometimes possible to insist an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. goes on garden leaveWhen, during the notice period at the end of employment, a member of staff is kept on full pay and is technically still employed, but does no work, has no access to company property or information, and cannot work for anyone else. even if their contract does not say anything about it, although this is risky. You can only do this for employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. whose skills do not require frequent use to stop them from deteriorating (eg a senior dealer in a spread betting business might need continuing experience of the market to stop their skills from becoming stale). If your employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. does not want to be on garden leaveWhen, during the notice period at the end of employment, a member of staff is kept on full pay and is technically still employed, but does no work, has no access to company property or information, and cannot work for anyone else. in these circumstances, they may bring a legal claim against you for failing to provide them with work.

Yes; fixed-term employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. who have been continuously employedHow long a person has been employed without a break lasting at least a week. Time off work whilst still employed (eg annual leave, sick leave etc) does not count as a break. by you for more than two years qualify for the same protections as permanent employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. on being made redundant, eg the right to a redundancy paymentMoney paid to a staff member because he is being made redundant.. See Q&A 59 and following.

This depends on what their employment contract says.

1. If your fixed-term employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.'s contract requires you to give notice to your employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. in the event that you do not renew their contract at the end of the fixed term, make sure you give the notice specified, in the way that the contract says you must give it.

2. If the contract does not specify a notice period(1) The length of time in advance which a notice must be given before it can take effect (2) The requirement to inform employees that they are being dismissed a certain amount of time in advance of their last day of employment. , then there is usually no legal obligation on you to give them any notice. However, it is best practice to give all fixed-term employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. notice setting out the date of termination so that you and your employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. are both clear about when the contract will end. As it is not a legal requirement, the amount of notice is up to you and what is sensible will very much depend on your circumstances.

Yes, but you will need to follow a proper process.

If the employment contract sets out a process which must be followed upon early termination of the contract, you must ensure that you follow that process.

If not, what you must do depends on why you want to end the contract:

1. If it is because you no longer need the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. (perhaps because they have completed the task they were brought in to do), you must follow a redundancyWhen a staff member is dismissed because his role is no longer needed. process; see Q&A 41 and following for how to do this.

   Bear in mind that fixed-term employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. should not be selected for redundancyWhen a staff member is dismissed because his role is no longer needed. purely because they are on fixed-term contracts, unless you can objectively justify your decision. For example, if your fixed-term employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. had been brought in to carry out a particular task (which has now finished), you may well be able to objectively justify selecting them for redundancyWhen a staff member is dismissed because his role is no longer needed..

2. If it is for some other reason (such as poor conduct), you will need to have the same considerations as you would for any other employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. to make sure the dismissal is fair; see and following.

   It will always be unfair if you dismiss a fixed-term employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. for trying to assert their rights as a fixed-term employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. (eg the right to the same terms and conditions as comparable permanent employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.). For more information about fixed-term employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.' rights, see Employees.

Before your employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.'s contract comes to an end, you must tell them about any vacancies in your business or you could face an Employment TribunalA tribunal that deals solely with employment disputes. claim. You can do this by ensuring that they have a reasonable opportunity to read any advertisements for vacancies or informing them of vacancies in some other way.

You must make sure you give the correct notice; see Q&A 87.

If your fixed-term employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. has been continuously employedHow long a person has been employed without a break lasting at least a week. Time off work whilst still employed (eg annual leave, sick leave etc) does not count as a break. by you for a month or more, you must give them the same minimum notice of termination as you would any other employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work., or more if the contract provides for it.

Minimum notice is:

1. one week if they have been continuously employedHow long a person has been employed without a break lasting at least a week. Time off work whilst still employed (eg annual leave, sick leave etc) does not count as a break. by you for between one month to two years; and

2. after they have worked for you for two years, at least one extra week per year of service up to a maximum of 12 weeks after 12 years' employment.

See Q&A 74 and following for more information about notice periods.

If the term of your employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.'s fixed-term contractA contract which runs for a set period of time, or until a set event, before ending. This is in contrast to permanent contracts, where there is no end date specified. with you has expired but they are still working for you, their contract will have been automatically renewed on the same terms.

You can subsequently end it, but you must bear in mind that if you are doing this because you don't need them any more, this will amount to a redundancyWhen a staff member is dismissed because his role is no longer needed., so you must follow a fair redundancyWhen a staff member is dismissed because his role is no longer needed. process to end the contract; see Q&A 41 and following for how to do this. Note that you must give notice in the same way as if the term of the contract had not yet expired; see Q&A 87 for the rules about this.

Fixed-term employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. should not be selected for redundancyWhen a staff member is dismissed because his role is no longer needed. purely because they are on fixed-term contracts, unless you can objectively justify your decision. For example, if your fixed-term employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. had been brought in to carry out a particular task (which has now finished), you may well be able to objectively justify selecting them for redundancyWhen a staff member is dismissed because his role is no longer needed..

Before your employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.'s contract comes to an end, you must tell them about any vacancies in your business or you could face an Employment TribunalA tribunal that deals solely with employment disputes. claim. You can do this by ensuring that they have a reasonable opportunity to read any advertisements for vacancies or informing them of vacancies in some other way.

Yes, but you will need to treat the situation as a dismissal and carry out certain steps (note that the situation should not be treated as a redundancyWhen a staff member is dismissed because his role is no longer needed.).

First, you should check the contract to see how the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.'s fixed period of employment is defined. Usually, it will say:

1. that the contract will end when the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. whose leave is being covered returns to work; or

2. that it will terminate on the expiry of a fixed term or on the performance of a specific task.

You will need to provide the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. with a reason as to why their employment is being terminated. The fact that the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. whose role was being covered is returning to work will usually be considered a fair reason if:

1. you informed the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. in writing when you employed them (eg in their employment contract) that their employment would end when the person they were covering returned to work; and

2. you are dismissing them because that employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. is returning to work.

If the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member that your fixed-term employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. is covering will not be returning to work at the end of their period of leave, but you still want to dismiss your fixed-term employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work., you must ensure that you have some other fair reason for dismissing them eg under-performance or inappropriate behaviour, and follow a proper process; see and following for further information.

If you have continuously employedHow long a person has been employed without a break lasting at least a week. Time off work whilst still employed (eg annual leave, sick leave etc) does not count as a break. your employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. for four years or more (whether this is under one contract or a series of successive short-term contracts), they will automatically become your permanent employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. unless you have a real business reason for why they should remain as a temporary employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work..

Example: You have a role on a short-term project, which relies on funding from an external source. In this situation, you are likely to be able to show you have a real business need to keep your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member on as a temporary employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.. Equally, a larger business employing someone on a series of short contracts to cover various employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.' maternity or sick leave leave is likely to be an acceptable reason for the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. to remain temporary rather than getting permanent status.

If there is no real business reason why your employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. should remain as a temporary employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. then they will have become a permanent employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work., starting from one of the following dates (whichever is later):

1. the date that you both entered into (or last renewed) their current contract; or

2. the date that they passed four years' continuous serviceHow long a person has been employed without a break lasting at least a week. Time off work whilst still employed (eg annual leave, sick leave etc) does not count as a break. with your business.

If an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. thinks that they have become a permanent employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work., they can ask you to give them a written statement to explain the position. In this situation, you must give them a statement explaining whether you accept that they are a permanent employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work., or explaining why you say they remain a temporary employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.. You must give them this written statement within 21 days of their request. If you fail to do so and the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. later brings a claim against you to assert their rights as a permanent employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work., it will likely harm your case.

You will need to tell your employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. why you are ending (or not renewing) their fixed-term contractA contract which runs for a set period of time, or until a set event, before ending. This is in contrast to permanent contracts, where there is no end date specified. in the following situations:

1. if they have been continuously employedHow long a person has been employed without a break lasting at least a week. Time off work whilst still employed (eg annual leave, sick leave etc) does not count as a break. by you for two or more years and they ask you for written reasons about why their contract is being ended or not renewed, you must provide a written statement of your reasons within 14 days of the request;

2. if your employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. is pregnant or is on maternity or adoption leaveA period of leave from work available to certain members of staff who have adopted a child through an adoption agency or who have had a child through a surrogacy arrangement, during which they are still entitled to the benefit of all terms in their contract of employment (expect remuneration terms) and after which they are entitled to return to work. (regardless of their length of service), you must provide a written statement of reasons without waiting for them to ask for it; or

3. if your employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. considers that their dismissal means they are being treated less favourably than one of your comparable permanent employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work., they can request a written statement from you explaining your reasons for that treatment. If you receive such a request, you must provide a written statement setting out your reasons, or explaining why there has been no less favourable treatment, within 21 days).

If none of the above apply, there is no legal obligation to give reasons to your employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work., but it is still best practice to be clear with them about what your reasons are. This can help to avoid misunderstandings or later allegations that, for example, you have discriminated against them when you have in fact not renewed their contract for a valid reason. See Staff resignations and retirement for how the law of unfair dismissalWhen an employee is dismissed without good reason or without following the proper procedure. Tribunal awards for unfair dismissal are up to one year's gross pay, currently capped at £93,878. is likely to change under the Employment Rights Bill.

Yes. Like a permanent employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work., a fixed-term employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. can resign and end their contract at any time.

There is a legally required minimum amount of notice that your employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. must give you. If they have been continuously employedHow long a person has been employed without a break lasting at least a week. Time off work whilst still employed (eg annual leave, sick leave etc) does not count as a break. by you for one month or more, they must give you at least one week's notice when they resign, even if their contract specifies less than this or says nothing about notice.

If your employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.'s contract requires them to give you more than the legal minimum period of notice, they must give you that amount of notice.

If the contract does not say anything about what notice period(1) The length of time in advance which a notice must be given before it can take effect (2) The requirement to inform employees that they are being dismissed a certain amount of time in advance of their last day of employment. your employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. has to give when they want to resign, then the amount of notice they must give you must also be reasonable; this may be more than the one week legal minimum if the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. is senior, specialist or has been with you for a long time.

The only time your employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. will not have to give notice when they resign is if they say they have been constructively dismissedWhere an employee who resigned directly because his employment contract was seriously breached, he is treated as though he has been dismissed.. This will be the case if they say you have broken their contract so seriously that you have forced them to resign.

Example: If you try to force your employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. to accept a change to their hours or pay in their contract without their consent, they could resign without giving you notice on the basis that they were constructively dismissedWhere an employee who resigned directly because his employment contract was seriously breached, he is treated as though he has been dismissed..

For more information on dealing with an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.'s resignation see What to do if a staff member resigns.

If the contract does not tell you how to end it or how much notice you must give to do so, then you must give the freelancerA person, in business for himself, who provides services to others. He may be an individual simply working under his own name, or may offer services through a company or partnership. Sometimes known as a consultant or independent contractor. a reasonable amount of notice. What is reasonable will depend on the circumstances, for example, the length of the contract, how formal the arrangements are between you and any standard market practice could all be relevant. Generally, the longer the freelancerA person, in business for himself, who provides services to others. He may be an individual simply working under his own name, or may offer services through a company or partnership. Sometimes known as a consultant or independent contractor. has worked for you and the more formal the arrangements between you, the longer the notice period(1) The length of time in advance which a notice must be given before it can take effect (2) The requirement to inform employees that they are being dismissed a certain amount of time in advance of their last day of employment. that you will be expected to give. For example, if they are heavily invested in a large project for you which was expected to last five years, then a long notice period(1) The length of time in advance which a notice must be given before it can take effect (2) The requirement to inform employees that they are being dismissed a certain amount of time in advance of their last day of employment. will be reasonable. Conversely, a freelancerA person, in business for himself, who provides services to others. He may be an individual simply working under his own name, or may offer services through a company or partnership. Sometimes known as a consultant or independent contractor. providing occasional IT support for a small monthly retainer will only be entitled to a short notice period(1) The length of time in advance which a notice must be given before it can take effect (2) The requirement to inform employees that they are being dismissed a certain amount of time in advance of their last day of employment. if their contract does not give one.

To avoid any confusion, ensure that your notice is clear and unambiguous about when the notice period(1) The length of time in advance which a notice must be given before it can take effect (2) The requirement to inform employees that they are being dismissed a certain amount of time in advance of their last day of employment. will start and how long it will last for. If your contract does not tell you how to deliver the notice to your freelancerA person, in business for himself, who provides services to others. He may be an individual simply working under his own name, or may offer services through a company or partnership. Sometimes known as a consultant or independent contractor., try to ensure that you hand it to the freelancerA person, in business for himself, who provides services to others. He may be an individual simply working under his own name, or may offer services through a company or partnership. Sometimes known as a consultant or independent contractor. personally if possible and note when this was done so there can be no dispute as to when it was received.

Note that whatever your contract with the freelancerA person, in business for himself, who provides services to others. He may be an individual simply working under his own name, or may offer services through a company or partnership. Sometimes known as a consultant or independent contractor. says about termination, in some circumstances you may be entitled to terminate the contract without notice because they have seriously breachedViolation of a legal or moral obligation. its terms. Whether a breachA violation of a legal or moral obligation. by a freelancerA person, in business for himself, who provides services to others. He may be an individual simply working under his own name, or may offer services through a company or partnership. Sometimes known as a consultant or independent contractor. is sufficiently serious to allow you to end the contract immediately will depend on the specific facts and you should seek legal advice if you are unsure. For access to a specialist lawyer in a few simple steps, you can use our Ask a Lawyer service.

Start by checking your freelancerA person, in business for himself, who provides services to others. He may be an individual simply working under his own name, or may offer services through a company or partnership. Sometimes known as a consultant or independent contractor.'s contract as this will typically explain what they need to do to end it and what notice they need to give. If they do not give you the notice that the contract says they must and you suffer loss as a result, then you may be able to sue them for breach of contractFailing to keep to the terms of a contract by doing something which is forbidden or failing to do something which is required under the contract. and recover your losses.

If the contract does not say how they can end it early then your freelancerA person, in business for himself, who provides services to others. He may be an individual simply working under his own name, or may offer services through a company or partnership. Sometimes known as a consultant or independent contractor. should give you reasonable notice that they are ending the contract.

What is reasonable will depend on the length of your contract and how formal it is (longer contracts and more formal arrangements will typically mean longer notice periods); whether there is any standard market practice you can look to; and what is reasonable at the time your freelancerA person, in business for himself, who provides services to others. He may be an individual simply working under his own name, or may offer services through a company or partnership. Sometimes known as a consultant or independent contractor. is giving you notice. For example, a specialised freelancerA person, in business for himself, who provides services to others. He may be an individual simply working under his own name, or may offer services through a company or partnership. Sometimes known as a consultant or independent contractor. who will be hard to replace ending a long-term contract midway will likely attract a much longer notice period(1) The length of time in advance which a notice must be given before it can take effect (2) The requirement to inform employees that they are being dismissed a certain amount of time in advance of their last day of employment. than a short-term contract for a relatively unskilled task.

You must not dismiss any member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. if the reason relates to a protected characteristicAge, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex or sexual orientation. , as otherwise you could face a claim for discriminationTreating someone differently directly or indirectly because of their age, disability, gender reassignment, marriage or civil partnership status, being pregnant and/or being on maternity leave, race, religion or belief, sex or sexual orientation.. Depending on the circumstances, be aware that damages An sum of money ordered by a court to be paid to a person as compensation for loss or injury. can be very high for discriminationTreating someone differently directly or indirectly because of their age, disability, gender reassignment, marriage or civil partnership status, being pregnant and/or being on maternity leave, race, religion or belief, sex or sexual orientation. claims.

You may also face an Employment TribunalA tribunal that deals solely with employment disputes. claim if you dismiss an agency workerStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. because they have exposed certain wrongdoings within your business (known as whistleblowingWhen an individual discloses information, usually about wrongdoing within a business, that he reasonably believes is in the public interest. For example if a crime has been committed or someone's health and safety has been endangered.) or because their dismissal disadvantages them and relates to them having (or you suspecting that they have):

1. brought proceedings in relation to their rights as an agency workerStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. (eg their right to be given access to facilities open to comparable staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer.);

2. given evidence or information in connection with any proceedings by another agency workerStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. to enforce their rights;

3. asked you for a written statement about any infringement of their rights (if they have worked in the same role for you for more than 12 weeks);

4. done anything else to enforce their rights as an agency workerStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. ;

5. alleged that you or the agency have breachedViolation of a legal or moral obligation. your duties to them; or

6. refused to forgo any of their rights as an agency workerStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. .

See Agency workers for more information about your duties towards agency workersStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. .

An agency workerStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. can stop working for you before they have finished their assignment and how they must do so will generally be covered by their contract with the employment agency. You should check your own agreement with the agency to see what the agency is required to do to if the agency workerStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. stops working for you (eg if it must give you notice or provide you with a substitute agency workerStaff supplied by a recruitment agency to work for a business under a contract made between the agency and the business. to replace them).

If the agency does not stick to your agreement then, technically, you may be able to sue it for breach of contractFailing to keep to the terms of a contract by doing something which is forbidden or failing to do something which is required under the contract. if you have suffered any loss as a result. However, in most cases, it is unlikely that it will be financially worth your while to go to the trouble of suing the agency as legal action is expensive and time consuming to pursue. See Taking legal action against staff for more information about taking legal action.

Yes; in order to be fair, your reasons for dismissing your apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college. should fall into particular categories in the same way as other employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. (see Q&A 2). Note that there are particular reasons you must never use (see Q&A 3).

NOTE: Following the introduction of the Employment Rights Bill to Parliament on 10 October 2024, this area of law is being considered for reform (see our blog explaining the Bill here). Any reforms are unlikely to take effect before 2026. The Bill proposes further rights from day one of employment, including protection from unfair dismissalWhen an employee is dismissed without good reason or without following the proper procedure. Tribunal awards for unfair dismissal are up to one year's gross pay, currently capped at £93,878. (currently available only after two years of service).

Yes, potentially; if your apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college. has been continuously employedHow long a person has been employed without a break lasting at least a week. Time off work whilst still employed (eg annual leave, sick leave etc) does not count as a break. by you for at least two years you could risk a claim for unfair dismissalWhen an employee is dismissed without good reason or without following the proper procedure. Tribunal awards for unfair dismissal are up to one year's gross pay, currently capped at £93,878. if you do not have a fair reason and follow a fair process when ending their contract. You could also face a claim for unfair dismissalWhen an employee is dismissed without good reason or without following the proper procedure. Tribunal awards for unfair dismissal are up to one year's gross pay, currently capped at £93,878. irrespective of how long your apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college. has been employed by you if, for example, their dismissal is related to whistleblowingWhen an individual discloses information, usually about wrongdoing within a business, that he reasonably believes is in the public interest. For example if a crime has been committed or someone's health and safety has been endangered., an attempt by the apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college. to insist on some of their legal rights (such as health and safety) or a protected characteristicAge, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex or sexual orientation. .

You must therefore follow the usual dismissal process when terminating an apprenticeship agreement to protect yourself from any potential claims; see Q&A 4 for how to conduct a fair process of dismissal. Note that dismissing an apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college. at the end of their apprenticeship period is very unlikely to amount to a redundancyWhen a staff member is dismissed because his role is no longer needed., therefore you will not usually need to follow a redundancyWhen a staff member is dismissed because his role is no longer needed. process.

If the apprenticeship agreement requires you to give notice to your apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college. that the agreement is coming to an end, you should make sure that you give the notice specified. If no notice period(1) The length of time in advance which a notice must be given before it can take effect (2) The requirement to inform employees that they are being dismissed a certain amount of time in advance of their last day of employment. is specified (or the period specified is less than the legal minimums set out below) and your apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college. has been continuously employedHow long a person has been employed without a break lasting at least a week. Time off work whilst still employed (eg annual leave, sick leave etc) does not count as a break. by you for more than one month, you must give them the following minimum statutory notice period(1) The length of time in advance which a notice must be given before it can take effect (2) The requirement to inform employees that they are being dismissed a certain amount of time in advance of their last day of employment. of termination:

1. one week if they have been employed by you for between one month to two years; and

2. after they have worked for you for two years, at least one extra week per year of service up to a maximum of 12 weeks after 12 years' employment.

If you dismiss your apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college. without giving enough notice, you will have broken the terms of their agreement and they may sue you for the salary and other benefits they would have been entitled to during that time. See Q&A 74 and following for how to give notice, when the notice period(1) The length of time in advance which a notice must be given before it can take effect (2) The requirement to inform employees that they are being dismissed a certain amount of time in advance of their last day of employment. will start and what happens if you fail to give it correctly.

Yes, as long as you follow the steps set out in Q&A 99.

An apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college. can choose to resign and end their contract early. How much notice they will need to give you will depend on what the contract says. If they have been continuously employedHow long a person has been employed without a break lasting at least a week. Time off work whilst still employed (eg annual leave, sick leave etc) does not count as a break. by you for one month or more, they will have to give you at least one week’s notice when they resign, even if the contract has a shorter notice period(1) The length of time in advance which a notice must be given before it can take effect (2) The requirement to inform employees that they are being dismissed a certain amount of time in advance of their last day of employment. or says nothing about notice.

For more information on resignation, see What to do if a staff member resigns.

No. You do not have to pay your apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college. a redundancy paymentMoney paid to a staff member because he is being made redundant. at the end of the apprenticeship if you do not keep them on.

If you have continuously employedHow long a person has been employed without a break lasting at least a week. Time off work whilst still employed (eg annual leave, sick leave etc) does not count as a break. your apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college. for two or more years, they are entitled to ask you for written reasons for why their contract is being ended. If they ask you for this then you must give them a statement explaining the reasons within 14 days of their request. See Staff resignations and retirement for how the law of unfair dismissalWhen an employee is dismissed without good reason or without following the proper procedure. Tribunal awards for unfair dismissal are up to one year's gross pay, currently capped at £93,878. is likely to change under the Employment Rights Bill.

If you are dismissing an apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college. who is pregnant or who is on maternity or adoption leaveA period of leave from work available to certain members of staff who have adopted a child through an adoption agency or who have had a child through a surrogacy arrangement, during which they are still entitled to the benefit of all terms in their contract of employment (expect remuneration terms) and after which they are entitled to return to work. (regardless of length of service), you must provide a written statement of reasons without waiting for your apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college. to ask for it.

Otherwise, you do not have to provide reasons to your apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college..

However, even if you don't strictly have to tell them the reasons that you’re not renewing their contract, it is still best to be clear with them about what they are and to keep a record of this (such as an email or note of a meeting with them). This can help to avoid misunderstandings or later allegations that, for example, you have discriminated against your apprenticeA person who is taken on to learn a trade or skill. A modern arrangement involves an apprentice, an employer and a training provider such as a college. when you have in fact dismissed them for a valid reason. See Q&A 2 and Q&A 3 for information about reasons you can and cannot validly use.

Yes. How much notice they need to give will depend on whether they are simply shadowing your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. or doing paid work for you:

1. if your internA person who works (in which case he must usually be paid) or work shadows (usually without pay) for a fixed period of time, to gain work experience or as part of a qualification. only observes or shadows your employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. under an informal arrangement then they can end their internship immediately if they want to;

2. If your internA person who works (in which case he must usually be paid) or work shadows (usually without pay) for a fixed period of time, to gain work experience or as part of a qualification. does regular paid work for you under a written agreement, then how they should end the internship will depend on whether they are an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. or a casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker.:

   1. if your internA person who works (in which case he must usually be paid) or work shadows (usually without pay) for a fixed period of time, to gain work experience or as part of a qualification. is an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. working on a fixed-term contractA contract which runs for a set period of time, or until a set event, before ending. This is in contrast to permanent contracts, where there is no end date specified., see Q&A 92;

   2. if they are a casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker., see Q&A 111.

For guidance on how to tell if your internA person who works (in which case he must usually be paid) or work shadows (usually without pay) for a fixed period of time, to gain work experience or as part of a qualification. is an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. or casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker., see Interns, apprentices and young people.

There are certain reasons that you must not use to end a casual or zero-hours contract, otherwise you could face an Employment TribunalA tribunal that deals solely with employment disputes. claim. These reasons include:

1. anything connected to a protected characteristicAge, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex or sexual orientation. ; or

2. because they have exposed certain wrongdoings within your business (known as whistleblowingWhen an individual discloses information, usually about wrongdoing within a business, that he reasonably believes is in the public interest. For example if a crime has been committed or someone's health and safety has been endangered.); or

3. if you ended their contract because you included a clauseA provision or section. Usually in a contract. in it to stop them from working for another business, which they have breachedViolation of a legal or moral obligation. .

Further, if your casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker. is part-time, then you must not dismiss them for asserting their rights as a part-time workerA staff member who has an obligation to do their work personally for someone who is not their client or customer. (eg the right not to be treated less favourably by you than you treat a comparable full-time workerA staff member who has an obligation to do their work personally for someone who is not their client or customer. ). See Casual workers (including zero-hours workers) and Part-time staff for more information about casual and part-time workersStaff members who have an obligation to do their work personally for someone who is not their client or customer. ' rights.

Normally the contract will explain how much notice they have to give you, although if the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member is free to refuse offers of work for any reason, it will not actually make a difference how much notice they give you, and there is likely to be little you can do if they decide to stop accepting work from you.

Nevertheless, if the contract does not say how much notice they need to give then they should technically give you reasonable notice that they are ending the contract.

What is reasonable will depend on the length of your relationship and how formal it is (longer contracts and more formal arrangements will typically mean longer notice periods) and whether there is any standard practice in your industry. For example, a long-term arrangement under which a casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker. has regularly and frequently worked for your business will usually require a longer notice period(1) The length of time in advance which a notice must be given before it can take effect (2) The requirement to inform employees that they are being dismissed a certain amount of time in advance of their last day of employment. than a fairly new casual workerA person hired to work on an as required basis, sometimes known as a seasonal worker. who has only done a few odd days' work.

This might be something you wish to propose, either because you are worried about the possibility of the member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. bringing a legal claim against you or perhaps if you wish to bring the working relationship to an end relatively swiftly and without going through a disciplinary procedure. However, settlement agreementsAgreements recording the fact that the parties in a legal dispute (or potential legal dispute) have resolved the issues between them. Particularly common in employment disputes. are not an alternative to good management. If, for example, the member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. is under-performing then it will usually be good practice to first put in place a procedure which works towards their improvement.

Alternatively, the member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. might come to you and propose settlement; an advantage for them is that they can say that they left on mutually agreed terms rather than saying that they were dismissed.

One advantage of entering into a settlement agreementAn agreement recording the fact that the parties in a legal dispute (or potential legal dispute) have resolved the issue between them. Particularly common in employment disputes. is that you can include confidentiality clausesProvisions or sections. Usually in a contract. (also referred to as non-disclosure agreementsAgreements between parties to not disclose any confidential information except where permitted under the terms of the agreement. A non-disclosure agreement can be either one-way (only one party agrees not to disclose confidential information) or mutual (all parties to the agreement agree not to disclose confidential information). Also known as NDAs. or NDAs) within the agreement to prevent any information about the dismissal being shared more widely. This can be particularly useful if the circumstances surrounding the dismissal are particularly sensitive or could cause reputational damage to your business. Note that there are some things that you cannot seek to protect using a confidentiality clauseA clause in an agreement prohibiting someone from divulging confidential information. as they will not be legally enforceable; you cannot prevent your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member from reporting a criminal offence or from whistleblowingWhen an individual discloses information, usually about wrongdoing within a business, that he reasonably believes is in the public interest. For example if a crime has been committed or someone's health and safety has been endangered.. In addition, you should not use a confidentiality clauseA clause in an agreement prohibiting someone from divulging confidential information. or NDAAn Non Disclosure Agreement. These are agreements between parties to not disclose any confidential information except where permitted under the terms of the agreement. An NDA can be either one-way (only one party agrees not to disclose confidential information) or mutual (all parties to the agreement agree not to disclose confidential information). to cover up instances of inappropriate behaviour within your workplace – including harassmentUnwanted behaviour that makes someone feel intimidated, degraded, humiliated or offended. and sexual harassmentUnwanted behaviour that makes someone feel intimidated, degraded, humiliated or offended. – particularly if there is a risk of recurrence.

Settlement agreementsAgreements recording the fact that the parties in a legal dispute (or potential legal dispute) have resolved the issues between them. Particularly common in employment disputes. are voluntary, so neither you nor the member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. has to agree to enter into one or to accept the terms offered. It is usually the case that a final agreement is reached following negotiation and discussion, with each side making various offers and counter-offers. Usually, these discussions are private so that if at the end of it an agreement is not reached, neither side can use the other's offers against them if eventually they go to court or an Employment TribunalA tribunal that deals solely with employment disputes. with a dispute. However, this will not be the case if by offering settlement terms you are discriminating against a member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer.; this could happen if you offered terms to a pregnant, disabledA physical or mental impairment which has a substantial or long-term effect on a person’s ability to carry out normal day to day activities. or older member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. simply as a means of getting them to leave your business because of their pregnancy, disabilityA physical or mental impairment which has a substantial or long-term effect on a person’s ability to carry out normal day to day activities. or age.

Usually, you should allow a member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. at least ten calendar days to consider settlement terms you offer and to seek independent legal advice on them. For access to a specialist lawyer in a few simple steps, you can use our Ask a Lawyer service.

Given the complexities of negotiating settlement agreementsAgreements recording the fact that the parties in a legal dispute (or potential legal dispute) have resolved the issues between them. Particularly common in employment disputes. with employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work., and the fact that the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. must receive legal advice for the settlement agreementAn agreement recording the fact that the parties in a legal dispute (or potential legal dispute) have resolved the issue between them. Particularly common in employment disputes. to be legally binding, it is recommended that you also seek legal advice on the terms of the settlement to ensure that you are protecting your business and that you have a legally binding agreement that covers what you need it to. For access to a specialist lawyer in a few simple steps, you can use our Ask a Lawyer service.

Once settlement discussions are complete and an agreement is reached, you must ensure that the final agreement is binding. For a settlement agreementAn agreement recording the fact that the parties in a legal dispute (or potential legal dispute) have resolved the issue between them. Particularly common in employment disputes. to be binding, it must meet the following conditions:

1. the agreement must be in writing;

2. the agreement must relate to a particular complaint or proceedings. It is not sufficient to say that the agreement is 'in full and final settlement of all claims'; you should give a brief background to any particular legal claims the settlement is seeking to prevent;

3. the agreement must confirm that the member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. has received advice from an independent adviser as to its terms and effect. They need to understand that they have waivedTo give up or abandon a legal right. the right to pursue any claims against your business. The adviser must be identified in the agreement and must have a current contract of insurance or professional indemnity insuranceInsurance which covers the cost of compensation for loss or damage caused by providing negligent services or advice to a customer. in place (in case the member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. needs to sue them for giving negligentFailing to exercise the care that a reasonable person would in the circumstances. Intention is irrelevant. advice). It is best practice for you to pay your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member's costs of obtaining legal advice, although you can cap the costs you will be willing to pay provided that this is reasonable; and

4. the agreement must confirm that all of the conditions set out above have been satisfied.

Given the complexities of negotiating settlement agreementsAgreements recording the fact that the parties in a legal dispute (or potential legal dispute) have resolved the issues between them. Particularly common in employment disputes. with employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work., and the fact that the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. must receive legal advice for the settlement agreementAn agreement recording the fact that the parties in a legal dispute (or potential legal dispute) have resolved the issue between them. Particularly common in employment disputes. to be legally binding, it is recommended that you also seek legal advice on the terms of the settlement to ensure that you are protecting your business and that you have a legally binding agreement that covers what you need it to. For access to a specialist lawyer in a few simple steps, you can use our Ask a Lawyer service.

There is no obligation to give a full, detailed or comprehensive reference. The only requirement is to take care that what you say is true, accurate and fair, and if you do give an opinion about the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member you must have a proper and legitimate basis for any opinion expressed. If you say something false or misleading and either the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member or new employerA person or business hiring one or more staff members. loses out as a result, you could face a legal claim for those losses.

It is therefore safest and easiest to say as little as possible, and stick to the bare facts. Most employersA people or businesses hiring one or more staff members. give a reference which is purely factual, stating only the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member's job title and dates of employment.

You can choose to provide a brief reference template using Reference Template.

If you wish to give a fuller reference because you are confident that doing so will not present you with problems, the following matters are commonly dealt with:

(a) time working for you;

(b) positions held within your business;

(c) capability on the job;

(d) timekeeping;

(e) reasons for leaving; and

(f) any long periods of absence such as sick leave.

You can choose to provide a detailed reference template using Reference Template.

No, you do not have to. Although under data protectionThe area of law which deals with the way in which data can be handled. law your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. have a general right of access to personal dataAny information about an identifiable, living person. Information which cannot be used to identify someone on its own will still be personal data if it can be used in combination with other information to identify that individual. that you hold about them, you are not required to provide copies of references that you have either obtained from or given to another business about them.

You can show them if you wish, although given that most references will be a bare factual summary, there will not usually be much to show.

Normally, a staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member will be paid their final salary in the next available payroll after they leave. However, you may arrange to make a final payment on their last day where this is either requested by the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member or as part of a negotiated exit from the business. It should be accompanied with a statement explaining how the figure was reached.

The final payment will consist of some or all of the following:

1. any outstanding wages, including wages for the time worked during the notice period(1) The length of time in advance which a notice must be given before it can take effect (2) The requirement to inform employees that they are being dismissed a certain amount of time in advance of their last day of employment. ; if you have placed your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member on garden leaveWhen, during the notice period at the end of employment, a member of staff is kept on full pay and is technically still employed, but does no work, has no access to company property or information, and cannot work for anyone else., you still need to pay them their full normal pay for that period;

2. any payment in lieu of noticeWhen an employee who is dismissed is paid her salary for the duration of the notice period instead of being required to work until the end of that period. you have agreed to;

3. payment for any holiday days (annual leavePaid time off work to which members of staff are entitled each year, also known as holiday leave.) which the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member has accrued at the date of their departure, but not used up; and

4. reimbursement for any unpaid expenses accrued (eg travel expenses); and

5. a redundancy paymentMoney paid to a staff member because he is being made redundant., if the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member is entitled to one. You must ensure you provide the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. with a written statement setting out how this payment was calculated; for an example of how this is done, see Redundancy - Notice of termination of employment. Note that failure to provide this written statement is an offence committed by the employerA person or business hiring one or more staff members. and punishable by a fine. See Q&A 59 for information about calculating redundancyWhen a staff member is dismissed because his role is no longer needed. payments.

As a general rule, you cannot deduct anything from your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member's final payment (eg if they owe you money, you cannot deduct that from their final salary payment), unless their contract specifically says you can; you should therefore check before doing this. For example, if the contract does allow it, you may look to deduct the remainder of a partially paid off season ticket loan, or reimbursement for any holiday the member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. has taken over and above their accrued holiday entitlement on the date that they leave.

See Staff pay for more information about when you can and cannot make deductions from wages.

You should first check your contract to see whether it tells you how to calculate the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member's holiday payPayment made by an employer to a worker during the worker's holiday time off work. when they leave. If it does, then you should follow this, so long as it provides for the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member to be paid at least what they would have been received if they had taken this holiday while they were still working for you .

If your contract doesn't explain how to work out what to pay them then you should calculate this by using this formula: (A x B) – C

1. A is the amount of leave they are entitled to by law for the entire holiday yearThe period in which a staff member must take his annual holiday leave.. This is a minimum of 28 days for a full-time workerA staff member who has an obligation to do their work personally for someone who is not their client or customer. , including public holidays (you will need to pro-rate this if they work part time).

2. B is the amount of the holiday yearThe period in which a staff member must take his annual holiday leave. which will have passed by the last day of their employment.

3. C is how many days leave they will have taken between the start of the holiday yearThe period in which a staff member must take his annual holiday leave. and their last day of employment.

You do not have to round up or round down any fractions of days to make them into whole days.

For example, your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member is entitled to 28 days' holiday for the entire holiday yearThe period in which a staff member must take his annual holiday leave., which runs from 1 January to 31 December and they will be leaving on 1 July by which time they will have taken five days' holiday. Here, they will be entitled to be paid for 9 days' holiday when their employment ends: this is based on 28 (which is the total number of days in the holiday yearThe period in which a staff member must take his annual holiday leave.) x 0.5 (because you will be 6 months into the holiday yearThe period in which a staff member must take his annual holiday leave. by the time their employment ends) minus 5 (the number of days they have already taken).

If you offer holiday which is more than the legal minimum (so more than 28 days for a full-time workerA staff member who has an obligation to do their work personally for someone who is not their client or customer. ) you should check your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member's contract to see if it says whether they are entitled to be paid for this extra holiday when they leave. If so, then you must also factor(In finance) A financier who provides finance to a business by buying the business's debts under the terms of a factoring agreement. this into the payment that you make them.

For example, if you offer 35 days holiday a year and your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member worked 6 months of the holiday yearThe period in which a staff member must take his annual holiday leave. and took 6 days holiday, the formula to calculate your departing staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member's holiday will be (35 x 0.5) - 6 = 11.5.

If you are unsure about how much holiday your member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. is legally entitled to, you can use the government's holiday leave calculator to calculate their minimum holiday leave.

You are required to complete a P45 (tax) form when employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. leave. This does not have to be done for non-employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work..

The form consists of four parts and these can be generated automatically if you have payroll software. You must do the following with each of the parts:

1. Part 1 must be sent online to HMRCHis Majesty’s Revenue and Customs. The government authority which oversees tax and customs.. This can be done automatically through your payroll software, or through the HMRC PAYE tools software.

2. Parts 1A, 2 and 3 must be given to the leaving employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.. Once again, you should use your payroll software to generate these parts of the form, or if you do not have a payroll software order copies of the P45 form from HMRC.

You should aimAlternative Investment Market, a sub-market on the London Stock Exchange for growing companies to have completed the form by the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.'s last day.

There is no legal obligation for you to hold an exit interview with a departing member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer.. However, if the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member has been at your business for a long time and/or you value their opinion, you should consider conducting one. The main advantage of an exit interview is that a leaving staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member will be more likely to reveal underlying issues with the business that may need addressing.

It is good practice for the exit interview to be held one on one, in private, with somebody who was not the direct manager of the leaving staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member – this makes it more likely that they will talk openly and freely.

For a list of potential questions to use during an exit interview, see List of questions to ask at an exit interview.

You should update your internal IT systems to remove the member of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. as soon as they leave. This includes dealing with any business software or pages of which the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member is an admin (eg a companyA private company limited by shares incorporated and registered in England and Wales. LinkedIn page or Twitter account).

There are a number of possibilities when dealing with email addresses: you could give another staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member in the business access to the account of the person who has left to pick up any emails that come in, or set up a forwarding function so that any emails are forwarded on to somebody who remains in the business. Another option would be to set an out of office response from the account notifying anybody who tries to email the account that the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member has now left and providing an alternative contact. Regardless, the email account should eventually be removed.

Additionally, it is important to block any accounts or licences that were set up in the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member's name (eg Office 365), block or deactivate any remote access software (eg if the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member can log in to do work via a cloud based system), and cancel any subscriptions the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member had through the business to any websites or services.

Finally, if your business has a website which includes staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. profiles, you should remove the staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. member's profile from the website once they have left.

See Checklist for departing staff to make sure you do not miss anything important.

Your business will always need to hold some records about former members of staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer.. The information available in their personnel files could include basics such as contact details, salary and leave records and extend to evidence gathered during any disciplinary or dismissal proceedings. When considering what data and records you should keep, you must exercise care to ensure that you only keep what you legitimately need and that you respect your former staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. members' right to privacy. Failure to do so which breachesViolations of a legal or moral obligation. your data protectionThe area of law which deals with the way in which data can be handled. obligations can have serious financial and reputational consequences for your business, including fines of up to £17.5 million or 4% of your global annual turnoverThe amount of money taken by a business, before deductions (eg expenses, tax etc). (although large scale fines are rare).

For full guidance about what personal dataAny information about an identifiable, living person. Information which cannot be used to identify someone on its own will still be personal data if it can be used in combination with other information to identify that individual. you should keep about your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. and former staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. and how to ensure that you are complying with your data protectionThe area of law which deals with the way in which data can be handled. obligations when doing so, see Records and data of former staff.

If your employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.'s contract contains provisions to protect your business (eg to stop former employeesIndividuals hired personally to work under contracts of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. competing against you by taking your clients or poaching your remaining staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer.) and you think you might want to rely on them in order to protect your business' interests after they have left, there are some practical steps you should take after you have given them notice. If you end up in a legal dispute with your employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. about a restrictive covenantA contractual term which places restrictions on someone. For example, a term in an employment contract or shareholders' agreement preventing a former employee or shareholder from competing or taking clients or staff with him to another business. In property, it could be a term in a tenancy agreement limiting what sort of business can be run from the premises., you will be in a stronger position if you have prepared properly.

1. Act fairly towards your staffAnybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. and comply with any internal policies and practices you have in place; not doing so might result in a court refusing to enforce the covenant.

2. In a similar vein, make sure you do not breachA violation of a legal or moral obligation. your contract with the employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.. Most obviously, do not prevent them from working during their notice period(1) The length of time in advance which a notice must be given before it can take effect (2) The requirement to inform employees that they are being dismissed a certain amount of time in advance of their last day of employment. unless you have taken the appropriate steps (see Q&A 81 for your options). If you do breachA violation of a legal or moral obligation. the contract, you may be unable to enforce any restrictive covenantsContractual terms which place restrictions on someone. For example, a term in an employment contract or shareholders' agreement preventing a former employee or shareholder from competing or taking clients or staff with him to another business. In property, it could be a term in a tenancy agreement limiting what sort of business can be run from the premises.. Make sure that the departing employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. is aware of the restrictive covenantA contractual term which places restrictions on someone. For example, a term in an employment contract or shareholders' agreement preventing a former employee or shareholder from competing or taking clients or staff with him to another business. In property, it could be a term in a tenancy agreement limiting what sort of business can be run from the premises., knows what it prevents them from doing and for how long, and is aware that breaching The act of violating a legal or moral obligation.it may lead to legal action.

3. If you know that the departing employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. intends to work for a specific competitor, write to the competitor to make them aware of the restrictive covenantA contractual term which places restrictions on someone. For example, a term in an employment contract or shareholders' agreement preventing a former employee or shareholder from competing or taking clients or staff with him to another business. In property, it could be a term in a tenancy agreement limiting what sort of business can be run from the premises.. If it is later broken as a result of your ex-employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work.’s work for the competitor, you may be able to sue the competitor if they know about the covenant and encouraged your former employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. to break it anyway.

4. If you intend to rely on a confidentiality clauseA clause in an agreement prohibiting someone from divulging confidential information. , you should identify exactly what information you want to prevent the departing employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. from sharing or using, and inform them in writing that this information is confidential and that releasing it will be a breachA violation of a legal or moral obligation. of their confidentiality agreement. You should bear in mind that even if you take all the correct steps, the restrictive covenantA contractual term which places restrictions on someone. For example, a term in an employment contract or shareholders' agreement preventing a former employee or shareholder from competing or taking clients or staff with him to another business. In property, it could be a term in a tenancy agreement limiting what sort of business can be run from the premises. might not be enforceable. If you think that your former employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. might be breaking it, you should take legal advice and act promptly to try and stop them as waiting can harm your chances of success in any legal case as well as potentially allowing harm to come to your business in the meantime. For access to a specialist lawyer in a few simple steps, you can use our Ask a Lawyer service.

For further information about what to do if you are worried that an employeeAn individual hired personally to work under a contract of employment, usually in exchange for payment. Employees are normally fully integrated into the business and the employer exercises a large degree of control over their work. has broken a restrictive covenantA contractual term which places restrictions on someone. For example, a term in an employment contract or shareholders' agreement preventing a former employee or shareholder from competing or taking clients or staff with him to another business. In property, it could be a term in a tenancy agreement limiting what sort of business can be run from the premises. and you need to take action, see Taking legal action against staff. Note that the law governing whether or not a restrictive covenantA contractual term which places restrictions on someone. For example, a term in an employment contract or shareholders' agreement preventing a former employee or shareholder from competing or taking clients or staff with him to another business. In property, it could be a term in a tenancy agreement limiting what sort of business can be run from the premises. is enforceable or not is very complicated, so you are likely to need to seek the advice of a lawyer if you have this problem.