Why a quick fire approach can backfire!

Many employers apply a “quick fire” approach when dealing with staff with less than 2 years’ service but should also be aware this approach can backfire.

Often referred to as a short service dismissal, when you let an employee go when they have less than 2 years’ service.  This is possible due to the fact an employee must have at least 2 consecutive years’ service to claim unfair dismissal at an employment tribunal.  It gives employers greater flexibility to terminate employment without the need to follow a full dismissal procedure. A lot of employers interpret this as having the green light to fire quickly but, dismissing an employee with less than 2 years’ continuous service is not without risks.

Employees terminated with less than 2 years’ service can bring a claim

There is often a misconception that an employee with under 2 years’ service cannot bring a claim at an Employment Tribunal when in fact, they can. An employee can make several claims, from day one of employment, including:

• breach of contract (wrongful dismissal)
• discrimination
• automatic unfair dismissal (such as asserting a statutory right or making a protected disclosure)

In the UK, there is no limit on the compensation which can be awarded for a discrimination claim. An employment tribunal can for example, award financial loss and compensation for personal injury which have arisen because of direct or indirect act(s) of discrimination. Claims of discrimination can be related to both visible and non-visible disabilities, and the onus is not always on the employee to declare the disability.

Avoiding an employment tribunal claim

To avoid an unexpected claim, it can be more appropriate to follow an abridged, or shorter, procedure to dismiss the employee, which is in line with best practice. This will enable you to understand the situation better and assess the risk of potential claims before proceeding. It will also help with:

• demonstrating to other employees you are an honourable employer,
• allowing other staff to feel a degree of security when they have less than two years’ service,
• avoiding negative social media attention from your disgruntled ex-staff member or colleagues,
• maintaining good reviews on public employment review sites and maintaining your employer brand.

Procedure for short service dismissals

Whilst you are not legally obligated to follow a full dismissals procedure, following an abridged process will help you defend a claim. We recommend you treat each employee issue based on facts, check your documentation, and follow this basic procedure as best practice:

1. invite the employee into a meeting and make them aware the meeting may result in their dismissal
2. hold a meeting with the employee so they have the full opportunity to provide their argument and raise any issues to consider before you conclude a decision
3. do not make a quick decision – take a break in the meeting to reflect on everything and re-adjourn when you are ready (which may not be the same day)
4. confirm the outcome of your meeting in person or via video conference call and always follow it up in writing
5. consider whether you would like to offer them the opportunity to appeal your decision

If you are exiting employees early in their employment, it is also good to reflect on what you as an employer could have done differently.  For example, could you improve your recruitment, induction or probation reviews?   You may have got to the stage where the best decision is to let the employee go and it is good opportunity to learn lessons and improve processes.

So hold fire before you quick fire and invest in training your managers.

If you want to find out more about our Interview Skills training or Management Development Programme to give your managers the knowledge and skills to avoid costly mistakes and build great teams, contact hello@emphasis.uk.com.