The statutory claim of unfair dismissal introduces the concept of reasonableness into the termination of contracts of employment. Now every eligible employee has a statutory right not to be unfairly dismissed by his employer.
An employer must establish the existence of one of the five permitted reasons for dismissal.
The five permitted reasons are:
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Relating to the capability or qualifications of the employee to do work of the kind which he was employed to do;
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Relating to the conduct of the employee;
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That the employee was redundant;
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That the employee could not continue to work in the position held without contravening some statutory provision or
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There was some other substantial reason that could justify the dismissal of an employee holding the position that the employee held.
Once the employer has shown the existence of one of the five permitted reasons, the tribunal must then decide if the employer acted reasonably.
The test is ultimately one of reasonableness and tribunals will ask themselves whether dismissal was within the range of responses of a reasonable employer.