Disciplining and dismissing employees factsheet

Effect and importance

In a claim for unfair dismissal the employer must show the reason for dismissal and that the reason fell within one of the categories of potentially fair reasons, such as conduct. The Employment Tribunal must decide whether the employer acted reasonably in dismissing the employee for that reason. The Tribunal will examine whether the employer had a genuine belief based on reasonable grounds founded upon the results of a reasonable investigation. In order to determine if the employer acted reasonably, the Tribunal will take into account the guidance set out in the ACAS Code of Practice on Discipline and Grievance.

The current limit on the compensatory award for unfair dismissal is as set out under HR Facts and Figures on the Buddy website. Subject to this limit, the Tribunal also has the power to increase awards by up to 25% for failure to follow the ACAS Code.

It is therefore essential that the employer has in place, and follows, a fair and reasonable disciplinary process. The following guidance explains the procedure that employers should undertake based on established case law and the requirements of the ACAS Code.