2. The basic law on dismissal

The rules on unfair dismissal set out in this booklet only apply if there has been a dismissal. In most cases, it will be obvious that a dismissal has taken place, but not always. For example, in a case of early retirement through ill health, a tribunal might well conclude that both sides mutually agreed to end the contract, meaning no dismissal and no scope to claim unfair dismissal.

Mutually agreed termination will also impact on entitlement to state benefits, as well as any income-based insurance products linked to termination, such as mortgage protection insurance. Employees and their reps need to be alert to these risks and their implications when involved in any discussions that could result in employment being terminated.