The 5 Fair Reasons for Dismissal and How to Handle Them Correctly

Getting the ‘People’ side of business right means doing more than just following the law, it means treating individuals with respect, care, and consistency. Few areas highlight this more than how dismissals are handled.

Whether you’re an SME employer managing a small team or scaling up operations, it’s vital to understand the five fair reasons for dismissal, and how to approach them correctly. Getting this wrong can result in tribunal claims, damaged morale, and reputational risk. Done properly, though, dismissals can be a necessary and fair part of managing your team.

What Are the 5 Fair Reasons for Dismissal?

UK employment law recognises five potentially fair reasons for dismissing an employee. Here’s what they are, and how to handle them properly.

1. Conduct

Misconduct includes anything from repeated lateness to serious offences like theft.

Example of Good Practice:
An employee is regularly late. They receive ‘verbal’ warnings . If the lateness persists, a disciplinary hearing is conducted where the employee is given chance to respond. They would firstly receive a First Written Warning, and then if no improvement while the warning was still ‘live’, another disciplinary hearing is conducted. The employee is again given chance to respond, and a Final Written Warning may be issued. If this conduct continued, while the warning was ‘live, a disciplinary hearing is conducted, and the employee may be dismissed. This decision to dismiss follows the correct procedure, in line with the company’s disciplinary policy.

What Not to Do:
Firing someone on the spot without any warnings or investigation — even if their behaviour seems unacceptable — skips vital steps and could be deemed unfair.

2. Capability or Performance

This covers issues with an employee’s ability to do their job due to lack of skill, training, or ill health.

Example of Good Practice:
An underperforming team member is supported through a clear Performance Improvement Plan, with targets, reviews, and feedback. After a fair period and lack of improvement, and a series of disciplinary meetings, dismissal may follow, with documentation to back every step.

What Not to Do:
Letting someone go without giving them the opportunity to improve, or without any performance discussions or support, could be seen as arbitrary and unfair.

3. Redundancy

Redundancy relates to business needs such as job roles no longer being required, company restructuring, or economic downturns.

Example of Good Practice:
Redundancy is proposed after careful planning. Employees are consulted with transparently, selection criteria are clear, and alternative roles are explored.

Redundancy is always about the role and not the person in that role. Dismissals are carried out respectfully and fairly.

What Not to Do:
Claiming redundancy when the role is later filled by someone else on different terms, or failing to consult, undermines the legitimacy of the process and may amount to unfair dismissal.

4. Statutory Illegality

This applies when keeping someone in their role would break the law — for example, if a driver loses their driving licence.

Example of Good Practice:
An employer confirms the legal issue, considers whether the employee can be redeployed or supported, and then follows a fair dismissal process if there’s no alternative.

What Not to Do:
Dismissing someone based on hearsay or assumption, without investigating or offering alternatives, is both risky and unfair.

5. Some Other Substantial Reason (SOSR)

This is a broad category used only in specific, justified cases, like a breakdown in trust or third-party pressure to dismiss.

Example of Good Practice:
A long-term client refuses to work with a particular employee. After exploring every reasonable alternative, and consulting with the employee, the business is left with no choice but to dismiss — with full documentation.

What Not to Do:
Using this reason as a vague or convenient excuse without evidence or attempting to resolve the issue will rarely hold up legally.

Why the ‘How’ Is as Important as the ‘Why’

We regularly help clients who know why they need to end an employment relationship — but are unsure how to do it fairly. The reason alone doesn’t make a dismissal fair. The procedure, documentation, and communication are just as important.

• A rushed dismissal — even for a valid reason — can be ruled unfair.
• A respectful, legally-sound process builds trust, even during difficult decisions.

We can Help You Get It Right

Handling dismissals is rarely easy, and there is always some element of risk. Our HR team are here to guide you every step of the way, ensuring you follow fair processes, mitigate risk and avoid costly mistakes. Whether it’s managing performance, handling redundancies, or navigating complex people issues, we’re here for you, in person.

Need support or a second opinion?

Get in touch with your Advo HR advisor, or email us at info@advo.co.uk.