Employee Dismissal - Settlement Agreement | Royds Withy King

Dismissing an Employee

Over 75 years of combined employment law experience

Clear understanding of the complexities of employment law

Exceptionally responsive service

Commercial approach, tailored to your business

Employment solicitors that can help you avoid claims when dismissing an employee

‘We will advise you on the risks of dismissing an employee and guide you on the best approach to suit your business’

The employment relationship can break down for a variety of reasons. And although it may be amicable, often it’s not. Whatever the reason for dismissing an employee, our experienced employment solicitors can guide you though the maze of constantly changing employment law to ensure the best commercial outcome for your business, avoiding time consuming and expensive employment tribunal claims in the process.

Advice on drafting employment settlement agreements and more

Some of the key areas to consider when dismissing an employee:

  • Identifying the reason for dismissal.  For example: misconduct, poor performance, ill health, redundancy or restructuring.
  • Correct and effective processes and procedures.  We can advise you on the correct process to follow when dismissing an employee or terminating a contract.  However, if the procedure does not suit the needs of your business, we can find alternative solutions, advising you on the risks along the way.
  • Terminating the contract.  Whether you’re giving notice to employees, workers or consultants, there will be statutory or contractual provisions to which you must adhere in order to avoid breach of contract claims.
  • Negotiating exit packages.  We can advise you on how to construct a strong negotiation strategy to minimise the amount of a severance package.  We can also draft effective settlement agreements to ensure you are fully protected from potential claims.
  • Restrictive covenants.  Protecting your business when an employment relationship has broken down can be challenging.  We recognise the need to act quickly and commercially in such situations and can advise you on how to proceed, in order to ensure the stability and protection of your client base, workforce and confidential information.

Once again thank you for your efficient and professional services

Graham Taylor


Misconduct; Capability (including poor performance and ill health); Redundancy; Illegality; and ‘Some Other Substantial Reason’ (often referred to as SOSR).

There are various claims that an ex-employee may be able to pursue, including unfair dismissal, constructive dismissal, wrongful dismissal or discrimination.

A dismissal will be fair if: (i) the employer shows that it had a fair reason to terminate the employment; and (ii) the employer acted reasonably in treating that reason as a sufficient reason for dismissal, in all the circumstances of the case.  This means the dismissal must be both ‘procedurally’ and ‘substantively’ fair.

Compensation for unfair dismissal consists of a Basic Award (which is calculated in the same way as a statutory redundancy payment), as well as a Compensatory Award, which is an amount that the tribunal regards as ‘just and equitable’ based on the financial loss caused to the employee by the unfair dismissal (subject to a statutory maximum amount).

Contact us to find out how our experienced employment team can help you when it comes to dismissing an employee.