How to Write a Dismissal Letter

If you need to dismiss an employee, it is crucial to follow the correct procedure. Failure to do so could mean that they are able to make a claim against you for unfair or wrongful dismissal.

A letter of dismissal should follow a fair and lawful dismissal procedure. It is a legal requirement under the Employment Rights Act 1996 that someone who has been employed for two years or more is entitled to be given the reason for their dismissal in writing if they request this.

As an employer, you can be penalised for failing to follow the correct procedure and for not evidencing a valid and fair reason to dismiss.

You also need to follow the terms set out in the employment contract or your employee handbook in dealing with a dismissal.

Does a Dismissal Letter Have to be Sent?

While it is not always essential to send a dismissal letter, for example, if the employee has not been working for you for two years, it is however, still recommended that you do send a dismissal letter.

It avoids any ambiguity and lets the employee know exactly what has happened and why. Explaining why they have been dismissed clearly in writing means that there is a record of the decision.

By showing your reasoning and specifying the events that have resulted in the dismissal, you will have the best possible chance of showing that your dismissal process has been fair.

The letter should also give a set date for the ending of the employment, which will be useful for making sure that the correct amount of pay is calculated.

What to Include in an Employee Dismissal Letter

The letter should be drafted in light of the particular circumstances of the dismissal and the requirements of your employee contract and/or handbook. It should generally include the following:

• The employee’s name and the fact that their employment is being terminated
• The reasons why they are being dismissed.
• When the date of termination is and the date the employment contract will end.
• If it is not immediate, then whether any notice period is to be worked or whether the employee will receive payment in lieu.
• How accrued holiday will be dealt with or, if more holiday has been taken than has been accrued, how this will be dealt with.
• A reminder to the employee of any requirements as set out in the employment contract, such as returning property and confidentiality.
• Details of the employee’s right to appeal, to include the process to be followed, to whom the appeal should be made and the length of time in which they have to appeal.

Reasons For Dismissing an Employee

The letter should include the facts of what has happened, including the disciplinary steps that were followed and why the decision to dismiss the employee was taken.

It is essential that the reasons are valid and fair. Acceptable reasons for dismissal include:

• Misconduct, which could be continuing misconduct or gross misconduct
• Not being capable of performing the job, for example, not being able to carry out the tasks required, not being able to work with colleagues or being too ill to work
• Redundancy
• Continuing to work would be breaking the law, for example, if a driver had lost their driving licence
• Some other substantial reason, such as the ending of a fixed term contract or the end of temporary work being available

You are strongly advised to take legal advice before dismissing an employee to ensure that you have followed a fair process. In some cases, you may want to take steps to try and keep the employee. For example, if they have become disabled, you need to make reasonable adjustments to help them. You may need to consider whether a different role or part-time or flexible working would be a solution.

Contact Us

If you would like to speak to one of our expert employment lawyers, contact Kathy Trist on 01392 848922 or email kathy.trist@everys.co.uk