Ending employment fairly under the Employment Act

The Employment Act, 2007 protects employees against unfair termination. In a dispute, the employer must show that the reason for termination was valid and fair, and that it followed a fair procedure. Getting the procedure wrong can make a dismissal unfair even where the reason was a good one.

A valid reason

The reason must relate to the employee's conduct, capacity or performance, or to the employer's genuine operational needs. The employer must be able to prove it: keep records of warnings, performance reviews and investigations.

A fair hearing

Before dismissing an employee for misconduct or poor performance, the employer must explain the reason to the employee, in a language they understand, and hear what they have to say. The employee is entitled to have a fellow employee or a union representative present.

In practice that means:

• A written notice setting out the allegations, sent in good time
• A meeting at which the employee can respond and bring a colleague
• A decision, in writing, that deals with what the employee said

Notice and dues

Unless the dismissal is summary for gross misconduct, the employee is entitled to notice under the contract or the Act, or pay in lieu. Final dues, including accrued leave, should be calculated and paid promptly, with a certificate of service.

Redundancy

Redundancy has its own procedure under the Act, including notice to the employee and the labour office, and rules on selection and severance pay. It should never be used as a shortcut around a disciplinary process.

For employees

If you believe you were dismissed unfairly, keep your contract, letters and payslips, and take advice promptly. Claims are heard by the Employment and Labour Relations Court, and time limits apply.

We act for both employers and employees, from drafting contracts and disciplinary procedures to representation in court.