Skip to content
CityAM
Main navigation
  • News
    • News
      • Latest Business News
      • Economics
      • Politics
      • Tech
      • Banking
      • FTSE 100 Live
      • Retail
      • Insurance
      • Legal
      • Property
      • Transport
      • Markets
    • From our partners
      • AON
      • Bayes Business School
      • Canada BIDs
      • Central London Alliance CIC
      • Destination City
      • Halkin
      • Olympia
      • Inside Saudi
      • Tottenham Hotspur Stadium
      • Santander X
      • YEAR SIX Dividend
    • Featured

      Judge rejects Gatwick Airport bid to block new relaxed runway slot rules

      Gatwick Airport terminal bustling with travelers and staff under bright signage and flight information displays

      Submit a story

      Tell us your story.

      Submit
  • Opinion
  • Sport
    • Latest Sports News
      • Sport
      • Sport Business
    • From our partners
      • The Morning Briefing: SBS x CityAM
      • Aramco Team Series
      • LIV Golf
    • Featured

      Arsenal launch £7k-a-head VIP package with seats behind dugout and player meeting

      High-resolution image of a business meeting with diverse professionals discussing a project in a modern office setting

      Submit a story

      Tell us your story.

      Submit
  • Life&Style
    • Life&Style
      • Life&Style
      • Toast the City Awards
      • The Magazine
      • Travel
      • Culture
      • Motoring
      • Wellness
      • The RED BULLETiN
      • Do it with Shared Ownership
      • Media Speak Hub
    • Featured

      Fogo de Chao nominated for Best Casual Dining Toast award

      Fogo de Chão restaurant exterior with vibrant signage and bustling entrance at popular city location

      Submit a story

      Tell us your story.

      Submit
  • Investec
  • Events
  • Latest Paper
Tuesday 14 June 2016 7:04 pm  |  Updated:  Monday 02 August 2021 1:47 pm

How to avoid these common employment law mistakes

By: CityAM Contributor

Add as a preferred source on Google

There are times when any employer must make tough management decisions. While employment law provides a framework for managing the process of terminating a member, or members, of staff, mistakes are often made. Many, however, can be easily avoided.

The most common mistake relating to employment law is failing to effectively manage people who, for whatever reason, aren’t working out. Whether it’s an employee’s performance, cultural fit, or the fact that the business has grown beyond them, many managers don’t like delivering bad news. Too often there is no communication until the situation reaches breaking point.

Often with entrepreneurs, early employees are friends, which adds an added dimension of discomfort. But even if not, most people aren’t great at telling others that they’re doing a bad job, or even that they’re doing a good job but that it’s a job the company no longer needs.

Generally employees only have the right not to be unfairly dismissed if they’ve already been with an employer for at least two years. If someone is past the two-year legal probation period, a three warning system should ensure a fair performance dismissal. Regardless of length of service, we would always advise a gradual escalation from informal discussions on the areas of failing, providing opportunities to improve, offering ongoing feedback and finally, if necessary, a more formal process. This way, if and when you get to crunch point, the employee is not surprised. That’s both legally right and commercially right.

Some employers (and employees) in this situation, however, prefer to reach a mutually agreeable exit through a settlement agreement, which sets out what the employee will receive in return for waiving claims against the employer.

The costliest employment errors usually relate to discrimination, particularly maternity leave. Either the individual comes back and isn’t properly reintegrated into the business, or the company prefers the maternity cover and decides to keep them in the job. It doesn’t matter if the maternity cover has settled into the job and is performing better than the person they replaced, the person on maternity leave has an unavoidable right to return to their pre-existing job. With discrimination cases, employees don’t need to have worked with you for two years and the cap on compensation for the tribunal is removed.

Employee misconduct should also be managed carefully. If the individual has been with you for two years or more, you need to go through a proper disciplinary process where the individual is told of the allegations and given an opportunity to respond. If it’s an allegation that threatens the business, it might be appropriate to suspend them while you’re investigating. If you conclude that it’s gross misconduct, then it is a lawful dismissal – at a tribunal it would have to be shown that no reasonable employer with those facts could have thought it was misconduct, which is a pretty high barrier.

Despite some claims to the contrary, British businesses aren’t overburdened with employment regulation. Britain is one of the best places to find talent to grow your business – and there is almost nothing that a good employer would want to do that is not achievable under UK employment laws.

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • Jobs and Money

Categories

  • Personal Development

Trending Articles

  • As it happened: Stocks sink after Fed and Bank of England opt for hawkish hold; Oil price tumbles

  • More Big Four blues as Deloitte plans to slash UK audit roles

  • Baillie Gifford in line for Anthropic windfall just months after £3.6bn SpaceX bonanza

  • City investors raise alarm on Burnham’s Chancellor pick

  • Revolut pays compensation for waking customer up with push notifications

More from CityAM

  • More Than Half of UK Businesses Say Hiring Has Become Harder as Employment Costs Rise by Almost 10% in a Year

    Business Wire
  • World Cup office sweepstakes could leave employers facing legal red cards

    Legal
    The Club World Cup kicks off this evening (well, at 1am tomorrow morning) with 32 teams looking to win a trophy few really wanted to fight for a couple of months ago.
  • Rising hiring costs push British businesses to the brink

    Business
    London office workers collaborating on AI and tech projects, surrounded by computers and digital interfaces in a modern wo...
  • Workplace NDA ban may lead to more tribunals

    Legal
    London office workers collaborating on AI and tech projects, surrounded by computers and digital interfaces in a modern wo...
  • Pinsent Masons is not the only City law firm walking a dangerous AI tightrope

    Legal
    Breaking news update with stock market analysis and financial data graphs on a digital interface, highlighting global trends
  • Employment Rights Act will turbocharge creative interview techniques

    Opinion
    Professional job interview setting with diverse candidates seated at a table, highlighting workplace diversity and inclusion.
  • Next boss slams Labour’s zero-hour contracts crackdown

    Retail
    Simon Wolfson speaking at a business conference, wearing a suit and tie, addressing economic and retail industry topics
  • James Reed: UK needs entrepreneurs desperately. So I’m gonna fund them

    Opinion
    James Reed discussing business strategies at a conference podium with a focused audience in the background

CityAM Canada — business, markets and opinion for Canadian readers.

Sections

  • Business
  • Markets
  • Tech
  • AI
  • Economics
  • Opinion
  • Cities

Company

  • About
  • Contact

Legal

  • Terms of Use
  • Privacy Policy
  • Cookie Policy
© 2026 CityAM Canada. All rights reserved.
Terms · Privacy · Cookies