Labour & Employment

What the Labour Act requires before a dismissal

Anjali Shrestha · · 4 min read

What the Labour Act requires before a dismissal

An employer with a good reason to dismiss can still lose the case by skipping the steps that have to come first.

The reason has to be a permitted one

The Labour Act sets out the grounds on which employment may be ended. A reason outside them will not hold, however genuine it is.

The worker must get a chance to answer

A written explanation should be sought and genuinely considered before any decision. A hearing held after the decision has been taken is not a hearing.

Notice and final dues

Notice, accrued leave, gratuity where applicable and outstanding social security contributions all fall due. Withholding them to force a settlement tends to strengthen the worker's claim.

Keep the file

Warnings, the explanation sought, the response given and the decision recorded are what the tribunal reads. An undocumented process is treated as one that did not happen.

About the author

Anjali Shrestha

Founder & Managing Advocate

Most disputes are decided by a document somebody signed without reading. My job starts before that.