It is important to prepare a well crafted dismissal letter otherwise the decision could be challenged by the employee and brought to the attention of the Employment Tribunal.The main reason why so much importance is given to the dismissal letter is that it should contain the primary reasons why the employee is being dismissed and it is seen to be a fair decision according to employment law. Poorly worded dismissal letters fail to address this clearly enough, paving the way for a claim of discrimination or unfair dismissal.The following guidelines should be followed when it is necessary to let an employee know that s/he is being dismissed.

Clearly outline the reason(s) for dismissal. It may be surprising just how many dismissal letters actually fail to list the reasons(s) for dismissal. An assumption that the reasons are obvious to the employee is not sufficient to avoid spelling them out. 

Ensure that the reasons for dismissal are fair as addressed by the Employment Rights Act 1996. Reasons listed for dismissal according to the Act include one or more of the following:

poor conduct;lack of capability;redundancy;statutory illegality;other substantial reason specified. Provide details of how the decision was made. Some effort needs to go into the detail explaining how the decision to dismiss was brought about. For example, if an employee was warned at a disciplinary meeting, but went on to ignore the warning, this should be spelled out. 

Outline the alternatives that were explored before arriving at a decision to dismiss. It is important to provide an outline of what you have done as a responsible employer to explore other alternatives to outright dismissal. For example, if the reason was redundancy, explain how employees affected were consulted in advance and whether suitable alternative vacancies were explored before a decision to dismiss.

Keep the tone of the letter professional. Even if the reason for dismissal is gross misconduct, it is good practice to maintain a courteous and professional tone throughout the letter. The tone should be especially sensitive when the decision to dismiss is a no-fault reason, such as poor health or redundancy.

Explain how the employee has the right of appeal. It is important to point out to the employee that they have the right of appeal. The appeal process should be explained, perhaps by attaching a copy of the employer’s disciplinary policy to the dismissal letter. The name and contact details of the person to contact for an appeal should be given as well as an outline of the timetable for an appeal to be made.

Include practical details. The date should be given of the final day of employment, unless there is summary dismissal because of gross misconduct, for which no notice needs to be given. If the employee is to be paid in lieu of serving notice, this should be stated or the period of notice stated clearly. Also, include the date when the P45 will be sent out, whether there is any property belonging to the employer, such as keys, that need to be returned and if there are any outstanding entitlements like holiday pay which will be paid.

Remind the employee of any duty of confidentiality. Duty of confidentiality commonly extends beyond the cessation of employment. If this is the case with the employee’s contract, the employee should be politely reminded of this policy.

Don’t delay sending out the dismissal letter. Once a dismissal letter has been drafted and prepared, it should be sent to the employee promptly. The letter contains a timeline for the employee’s departure from work and it would not make sense to leave the letter lying on someone’s desk until the last minute.

Dismissal letters in the U.S. and other countries

Dismissal letters are standard in all countries where employment laws and employment contracts are in force. They tend to vary according to individual preference rather than the individual country.

References to UK employment law

1.https://www.gov.uk/employment-status

Quote from the U.K. Employment Rights Act 1996

Workers are entitled to certain employment rights, including:

getting the National Minimum Wageprotection against unlawful deductions from wagesthe statutory minimum level of paid holidaythe statutory minimum length of rest breaksto not work more than 48 hours on average per week or to opt out of this right if they chooseprotection against unlawful discriminationprotection for ‘whistleblowing’ - reporting wrongdoing in the workplaceto not be treated less favourably if they work part-time