Employee Dismissal Letter

What is an employee dismissal letter?

An employee dismissal letter is a formal letter sent by an employer to an employee, usually at the end of a disciplinary process, informing them of the decision to dismiss the employee from their position of employment.

Is it mandatory to have an employee dismissal letter?

Yes, in practice, it is necessary to issue a dismissal letter when dismissing an employee from the organisation. While it may be done orally, it is strongly recommended to use a dismissal letter to comply with the employment contract as it requires the employer to terminate employment by giving notice in writing. Failure to use a dismissal letter can cause confusion and expose the employer to legal claims made by the employee.

What does dismissal mean?

Dismissal refers to the termination of the employee's contract of employment.

What are the prerequisites for an employee dismissal letter?

Before issuing the employee a dismissal letter, the employer must have carried out a stringent disciplinary procedure. Where the employee has been accused of gross misconduct, should have conducted an investigation into the conduct the employee has been accused of.

The employee should have been given relevant and reasonable opportunities to improve and/or explain their behaviour to the employer before the decision to dismiss them is taken. Where the employee is being dismissed on grounds of poor performance and/or poor conduct, the employee should have been issued with relevant warning letters before dismissal.

It is common practice to issue at least three disciplinary meetings and written warnings before dismissal of the employee can be considered. It should be noted that where an employer has included its disciplinary procedure within their contracts of employment, they could breach the terms of the contract if that disciplinary procedure is not followed.

What has to be done once an employee dismissal letter is ready?

Once the employee dismissal letter is ready, it should be signed by the employer or their representative (e.g. HR Manager), and then sent to the employee using the method prescribed in the employment contract or the disciplinary procedure, which may be either by post or by email. After sending, the employer should make sure to keep a copy of the letter for their records and future reference.

What must an employee dismissal letter contain?

An employee dismissal letter must contain:

• Details of any disciplinary meetings, warning letters, conduct and/or performance the employee has failed to rectify; and
• Any other relevant information regarding the employee's dismissal should be included.

What laws are applicable to an employee dismissal letter?

Employment Rights Act 1996

Employment Act 2002

Acas Code of Practice

LRA Code of Practice

UK Government Guidance on Dismissal

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