How to Fire an Employee Without Getting Sued (UK)

Your tech is late. Again. Third time this week. Jobs are getting delayed, customers are complaining, and you're covering his work at 10pm. You need to fire him.

But you've heard horror stories: employment tribunals, £20K settlements, months of stress. You're worried one wrong word means losing your business.

This guide gives you the exact UK-compliant process to fire an underperforming employee while protecting yourself from tribunal claims.

Legal Grounds for Dismissal (What's Allowed)

You can't fire someone "because you feel like it." UK employment law requires a fair reason. These are the only legitimate grounds:

Documentation Required (This Saves You)

Employment tribunals are won and lost on paperwork. If it's not documented, it didn't happen. You need:

1. Written Contract of Employment

• Must have: Job title, duties, hours, pay, notice period, disciplinary procedure
• Why it matters: Proves what they agreed to. Can't fire for breach if contract doesn't specify expectations.

2. Performance/Conduct Records

3. Written Warnings

4. Meeting Notes

• Notes from every disciplinary meeting
• Who attended, what was said, what employee agreed to
• Get employee to sign or email acknowledgment

The Performance Improvement Plan (PIP) Process

For capability issues (poor performance), you must give them a chance to improve before firing. Use a PIP:

Step 1: Initial Meeting (Informal)

Step 2: Formal PIP Document

Step 3: Review Meeting (After 4 Weeks)

The Termination Meeting (Final Step)

If warnings and PIP didn't work, you can proceed to dismissal. Follow this exact protocol:

Before the Meeting

1. Send formal invitation: 48 hours notice minimum. State it's a disciplinary meeting that may result in dismissal.
2. Right to accompany: They can bring a colleague or union rep (not a lawyer).
3. Prepare evidence: Print all warnings, PIP documents, incident logs.
4. Have termination letter ready: Don't wing it. Pre-write the dismissal letter.

During the Meeting

After the Meeting

• Give them written termination letter (keep copy)
• Document what was said (email yourself notes)
• Inform team professionally ("X is leaving, last day is [date]")
• Change passwords, collect equipment

Final Pay and Notice Period

Statutory Notice Periods (Minimum Required)

Payment in Lieu of Notice (PILON)

Final Payslip Must Include

• Wages up to termination date
• Accrued holiday pay (they're entitled to unused days)
• Notice pay (if working notice or PILON)
• Any commission/bonus owed
• Deductions allowed: Unreturned property value (if in contract), overpaid wages

Avoiding Tribunal Claims (Red Flags)

Even if you follow the process perfectly, watch for these high-risk scenarios:

Get Legal Advice When...

• Employee has 2+ years service (higher tribunal risk)
• Discrimination concerns exist
• Employee is pregnant or on long-term sick leave
• You're unsure if you have enough evidence
• It's a redundancy situation (different rules apply)

The Bottom Line

Firing an employee in the UK requires documentation, warnings, and a fair process. Rush it, skip steps, or fail to document, and you'll lose at tribunal.

Follow this checklist: identify fair reason, document everything, give written warnings, run a PIP, hold formal meeting, pay correctly, return property. Do all that, and you're legally protected.

And if you're unsure at any point—especially with long-service employees or protected characteristics—spend £300 on a 1-hour employment law consultation. It's cheaper than an £8,000 tribunal settlement.