CIMA E2 Syllabus B. Managing people performance - Dismissal - Notes ^{9 / 19}

Constructive dismissal refers to resignation by the employee because the conduct of the employer was sufficient to be deemed to have terminated the contract by the employer’s actions.

Wrongful dismissal is dismissal without notice. 

Wrongful dismissal may or may not be unfair dismissal.

For dismissal to be fair, it has to be acceptable under statute. Fair grounds for dismissal include:

1. Gross misconduct such as theft or violence.

2. Capability - Employee failed to meet the required standards.

3. Breach of statutory duty prohibiting continued employment.

4. Redundancy of the role. For example, an employee’s part of the business ceases trading.

5. Some other substantial reason. For example, loss of trust.

An example of an unfair dismissal would be an employee leaving the job claiming that the employer was in breach of contract by demoting him.

Procedure for dismissal:

1. Consult recognised trade unions

2. Notify specific countries government office or the Department for Education and Employment

3. Select and dismiss fairly

4. Give appropriate notice

5. Make redundancy payments

6. Allow time off for employees under notice to look for other jobs