Dismissal and Employee Exits: Employer Guides for Every Situation
Practical, employer-side guidance on every type of dismissal and employee exit. From fair dismissal procedures to gross misconduct, sick leave dismissal, probation, constructive dismissal and settlement agreements, written exclusively for North West employers.
Employer-Side Advice Only
CIPD Qualified
ERA 2025 Updated
Bolton, Manchester, North WestDismissal is the highest-risk area of employment law for North West SMEs. Getting the reason right is only half the battle. The process must be fair, documented, and defensible. From January 2027, unfair dismissal protection kicks in after just 6 months’ service and the compensation cap is removed entirely. Every dismissal now carries more weight than it did two years ago. The guides below cover every dismissal and exit situation you are likely to face.
Choose Your Dismissal Scenario
Select the scenario that matches your situation for step-by-step guidance tailored to UK employment law.
How to Dismiss an Employee Fairly
The complete employer guide: five fair reasons, fair process, common mistakes and ERA 2025 changes. Start here if you are unsure where to begin.
Read Full Guide+ 7 more scenarios
Dismissal on Sick Leave
Can you dismiss someone who is off sick? Yes, but the process is complex and the risk is high. This guide covers capability dismissal, reasonable adjustments and the medical evidence you need.
Read GuideDismissal on a Zero Hours Contract
Zero hours does not mean fewer rights. This guide covers employment status, how dismissal rules apply to zero hours workers and what changes under ERA 2025.
Read GuideGross Misconduct Dismissal
When an employee’s conduct is serious enough to justify immediate dismissal without notice. What counts as gross misconduct, the investigation process you must follow and how to avoid common mistakes.
Read GuideDismissal During Probation
Probation does not mean no rights. This guide covers what you can and cannot do during a probationary period and how the ERA 2025 six-month threshold changes the risk calculus.
Read GuideConstructive Dismissal
When an employee resigns because of your conduct and claims it counts as dismissal. What triggers a constructive dismissal claim, how to avoid it and how to defend one.
Read GuideVerbal Resignation
An employee says “I quit” in the heat of the moment. Is it legally binding? This guide covers what to do, how long to wait and when to take a verbal resignation at face value.
Read GuideRetracted Resignation
An employee who resigned wants their job back. Do you have to accept the retraction? What are your options and what are the risks either way?
Read GuideDismissal During Pregnancy
One of the highest-risk dismissal scenarios. Pregnant employees have enhanced protections and no qualifying service period. This guide covers what you can and cannot do.
Read GuideJob Abandonment
An employee has stopped coming to work and is not responding. What are your legal obligations before you can treat the contract as terminated?
Read GuideGarden Leave
Placing an employee on garden leave during their notice period. When it is appropriate, what it costs and how to do it correctly.
Read GuideSettlement Agreements
Using a settlement agreement to end employment by mutual consent. When to use one, what it must contain, what ERA 2025 changes about NDAs and how to negotiate one.
Read GuideDismissal: The Two Tests Every Employer Must Pass
Before exploring specific scenarios, there are two things that apply to every dismissal regardless of the reason:
Fair reason. There are five potentially fair reasons for dismissal under the Employment Rights Act 1996: conduct, capability, redundancy, statutory illegality, and some other substantial reason. If the reason does not fall within one of these five, the dismissal is automatically unfair regardless of how justified the employer believed it to be.
Fair process. Even where the reason is entirely valid, an employer who fails to follow a fair procedure, including proper investigation, written invitation to a hearing, opportunity to respond and right of appeal, faces an unfair dismissal finding. The Acas Code of Practice sets the benchmark. Tribunals can increase compensation by up to 25% where an employer unreasonably fails to follow it.
Both tests must be passed. A fair reason with a flawed process fails. A perfect process built on the wrong reason fails. The guides below address both dimensions for each specific scenario.
Dismissal Risk Is Rising: What ERA 2025 Means
Unfair dismissal protection after 6 months’ service. Currently two years. Every employee hired from July 2026 is protected within months of starting.
The compensation cap on unfair dismissal awards is removed entirely. Currently capped at £118,223 or 52 weeks’ gross pay. After January 2027 there is no upper limit.
Dismissal for taking part in lawful industrial action is now automatically unfair.
The tribunal claim window doubles from 3 months to 6 months.
The habits you build now, fair processes, documented decisions, consistent treatment, are the ones that protect you after 2027. DaisyHR advises North West employers on dismissal risk every day.
Read our full ERA 2025 guideFrequently Asked Questions
Currently two years of continuous service for ordinary unfair dismissal. This reduces to six months from January 2027 under ERA 2025. Certain dismissal reasons, such as pregnancy, whistleblowing, health and safety, or asserting a statutory right, carry no qualifying period at all and can be claimed from day one of employment. From January 2027, employers should treat every dismissal as carrying full unfair dismissal risk regardless of service length.
Unfair dismissal is a statutory claim based on whether the reason and process were fair, and it requires qualifying service. Wrongful dismissal is a contractual claim based on whether the employer breached the employment contract, most commonly by dismissing without proper notice. Constructive dismissal is where an employee resigns in response to a fundamental breach of contract by the employer and claims that their resignation was effectively a dismissal. An employee can bring more than one type of claim simultaneously.
In conduct and capability cases, yes. The Acas Code of Practice on Disciplinary and Grievance Procedures sets the expected standard and tribunals take it directly into account. Unreasonable failure to follow the Code can result in compensation being increased by up to 25%. In redundancy and SOSR cases the Code does not technically apply but following its principles of fairness is still strongly recommended.
Currently the compensatory award is capped at the lower of £118,223 or 52 weeks’ gross pay, plus a basic award calculated on service length, age and weekly pay. From January 2027 the compensatory cap is removed. There will be no upper limit on what a tribunal can award. Discrimination claims carry no cap at all. Getting dismissal right is always cheaper than defending it afterwards.
Yes, every time. The cost of advice before a dismissal is a fraction of the cost of defending a tribunal claim after one. DaisyHR provides same-day employment law advice for North West employers. Call us before you make any final decision.
Related Scenario Guides
Step-by-step employer guidance on running fair disciplinary and grievance processes. Written for North West SMEs.
Practical guidance on managing employee sickness and absence. From short-term absence triggers to long-term sick leave and occupational health referrals.
Get Dismissal Advice From a North West HR Consultant
Dismissal is the area where North West SMEs face the most tribunal risk, and where getting advice early makes the biggest difference to the outcome. Book a free 30-minute consultation. We will assess the situation, tell you what the risk looks like and advise on the right course of action before you make any final decision.
Dismissal advice for employers across Bolton, Manchester, Wigan, Warrington, Salford, Stockport, Bury, Rochdale, Preston, Lancaster, Cheshire and the wider North West. · Last reviewed: March 2026