There are many compelling reasons to avoid dismissing employees, and the most important one is the vulnerability of the employer to unfair dismissal claims. The famous "You're Fired" statement by Sir Alan Sugar could be seen as bullying and intimidation and likely to lead to an unfair dismissal claim and a big pay out. There are instances where you can fire on the spot and this can only be done under a modified procedure where the employee is caught ‘red handed' but this procedure can be fraught with danger. In October 2004 a new Statutory Minimum Procedure (SMP) on regulating dismissals (as well as disciplinary procedures and grievances) was introduced. Sanctions were also introduced at the same time whereby if the specified minimum procedures were not followed a dismissal would be automatically unfair and any compensatory award that an Employment Tribunal orders would increase the compensatory award by between 10% and 50%. If you fail to follow the SMP you might just as well decide to settle rather than fight any such claim. This article provides an overview of the 3-step procedure for dismissal.
FPB