This section of the Guide deals with the principles of law and good practice that apply when an employee leaves a company.
An employment relationship can end in several ways, but most commonly it ends through resignation or dismissal. This section outlines the mechanics of dismissal (dismissal) and then goes on to examine a number of particular legal issues that arise when an employee is dismissed such as notice rights.
There are also legal principles that apply to resignation and this section summarises these (resignation) before moving on to examine how an employment contract can end by mutual agreement (mutual agreement) or by the application of a legal principle known as frustration (frustration). Special considerations apply to the termination or non-renewal of fixed-term contracts (fixed-term contracts) and the termination of apprenticeships (termination of apprenticeships) , and this section outlines these.
There are other legal principles that a company may need to consider when an employee leaves. This section explains the legal rules on providing an employee with written reasons for his or her dismissal (written reason for dismissal) and references (references). It also sets out the considerations that need to be borne in mind if the company wishes to restrict an employee's activities after he or she has left the company (post-employment restrictions) or to reach a financial settlement of any legal claims the employee may have against the company (settlements). An outline is given of pension rights (pensions), the tax treatment of termination payments (tax), and social security considerations (social security considerations). Finally, the section gives some practical advice on exit interviews (exit interviews), labour turnover (labour turnover) and succession planning (succession planning).
In order to put the information on dismissal in this section into context, it should be borne in mind that there are three main ways in which a dismissal can be challenged as unlawful:
1. A dismissal that is implemented in a way that breaches an employee's contract of employment can be challenged as a wrongful dismissal. This section explains the legal principles that apply here (wrongful dismissal ).
2. If an employer does not act reasonably in deciding to dismiss, or if the dismissal was based on certain prohibited grounds such as pregnancy or trade union membership, the employee can bring a claim of unfair dismissal. This is dealt with elsewhere in this Guide (unfair dismissal ).
3. If an employee is dismissed on grounds of sex, race, disability, age, religion or sexual orientation then the dismissal could amount to an act of unlawful discrimination. Discrimination law is covered elsewhere in this Guide ( Equal opportunities ).