Termination

Termination of an employee in the UK who is serving a 6-month probationary period …

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When considering the dismissal of an employee for prolonged sickness absence, an employer must be able to demonstrate they have acted fairly …

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Dismissal may be summary, or with notice …

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Employees may receive severance payments, up to a certain upper limit, free of income tax, but may not receive basic pay in lieu of notice (PILON) tax free. Employees pay income tax and Class 1 national insurance contributions (NICs) on the amount of basic pay they would have received if they had worked their notice in full, even if there is no contractual PILON clause in their employment contract. 

Once the current upper limit for severance ALONE is reached employees continue to receive exemption from NIC payments on such payments, but employers pay national insurance in full on  them.

Suspension on full pay

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Employees with at least two years service are entitled by statute to receive a written statement giving particulars of the actual reasons for dismissal …

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Employees have the right not to be unfairly dismissed, and the burden is on an employer to satisfy a two-fold test …

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A contract of employment may be terminated in a number of ways …

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An employer may ask an employee to stay at home or take unpaid leave if there is not enough work for the employee …

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◉ Confidentiality and post-termination restraints In all employment contracts, employees have an implied common law obligation of fidelity and good faith …

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◉ Redundancy Redundancies are treated differently depending on whether they are individual cases, or collective redundancies …

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An unfair dismissal claim can only be brought by an employee after two years service …

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Under the Trade Union and Labour Relations (Consolidation) Act 1992 (TULRCA), a collective redundancy occurs when an employer proposes to make 20 or more employees redundant at one ‘establishment’ within a period of 90 days …

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