ACCA F4 - Corp and Business Law (ENG)

140 9: Dismissal and redundancy  Part C Employment law

Study guide

Intellectual level

C Employment law^

2 Dismissal and redundancy

(a) Explain termination of employment by notice 2

(b) Distinguish between summary and constructive dismissal 2

(c) Explain wrongful dismissal 2

(d) Explain unfair dismissal, including the procedure, and fair and unfair

reasons for dismissal

2

(e) Discuss the remedies available to those who have been subject to unfair

dismissal

2

(f) Explain what is meant by redundancy 2

Exam guide

Multiple choice questions are likely to focus on distinguishing wrongful, unfair and constructive dismissal.

1 Termination by notice

When an employment contract is terminated by notice there is no breach of contract unless the contents

of the notice (such as notice period) are themselves in breach.

A contract of employment may be terminated by notice. The following rules apply.

(a) The period of notice given must not be less than the statutory minimum, whatever the contract

may specify.

(b) It may be given without specific reason for so doing, unless the contract requires otherwise.

(c) If the contract states that notice may only be given in specific circumstances then generally it may

not be given for any other reason.

Although there is no breach of contract, termination by notice or non-renewal qualifies as 'dismissal'

under the statutory code. This means that the employee may be entitled to compensation for unfair

dismissal.

Statute imposes a minimum period of notice of termination to be given on either side.

1.1 Minimum period of notice

Where employment is terminated by notice the period given must not be less than the statutory

minimum.

If an employer terminates the contract of employment by giving notice, the minimum period of notice to

be given is determined by the employee's length of continuous service for the employer as follows.

(a) An employee who has been continuously employed for one month or more but less than two years

is entitled to not less than one week's notice.

(b) An employee who has been continuously employed for two years or more but less than twelve

years is entitled to one week's notice for each year of continuous employment.

(c) Any employee who has been employed for twelve years or more is entitled to not less than twelve

weeks' notice.

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