The Employment Protection Act. Three words that make many managers hesitate.
Not because they are afraid to do something wrong — but because they are uncertain about what they are permitted to do. That uncertainty often leads to two equally problematic outcomes: either avoiding difficult decisions longer than necessary or making decisions without sufficient preparation.
Neither is good. Here is what is most worth knowing.
The two basic grounds for dismissal
The Act permits dismissal on two grounds: personal reasons or redundancy. That sounds straightforward. In practice, it is not always.
Dismissal for personal reasons normally requires the employer to demonstrate what steps were taken to try to resolve the situation first. That may involve warnings, attempts at redeployment, and documentation. Without that, the decision can be difficult to defend.
Redundancy is a legal concept that does not only cover situations where there is simply no work available. It also encompasses reorganizations and operational changes. Even here, however, there are rules around selection order and the obligation to consider redeployment that are important to be aware of.
Selection order — something worth understanding in advance
The main rule is that the most recently hired employee is made redundant first. There are exceptions, including the possibility for smaller employers to exempt a certain number of key employees. Collective agreements can also further alter the rules.
In my experience, this is one of the areas where getting things wrong can have significant consequences — both financially and in terms of relationships. It is worth familiarising yourself with it well in advance, not only when the situation arises.
When it is worth seeking advice
When you are considering dismissal for personal reasons. When you are carrying out a reorganization affecting several people. When someone is on sick leave and a decision needs to be made. When you are uncertain.
Employment law is not your adversary. It is a framework. If you understand the basic principles — or know who to call when you need to — you have a good starting point
If you have thoughts, questions, or simply want to talk something through — feel free to get in touch. I am happy to have an initial conversation with no agenda.
Right person. Right place. Everything changes.