Valid Reasons for Termination

Occasionally we receive a phone call asking how an employer can get rid of an employee that is not working out.

If the employee has been employed for less than 6 months in a large business (15 or more employee, or less than 12 months in a small business (fewer than 15 employees) then the termination of employment can be quite straightforward provided the termination is not for a prohibited reason.

However, once the employee has been employed longer than those timeframes there must be a valid reason for the termination and there must also be procedural fairness.

So, what constitutes a valid reason for termination?

Employers can lawfully terminate employment for:

• Performance issues – consistently failing to meet reasonable job expectations despite coaching and being warned of the possibility of termination.

• Misconduct – breaching company policy, code of conduct, or employment contract terms.

• Serious misconduct – theft, fraud, assault, or willful refusal of lawful instructions (allows immediate dismissal without notice).

• Redundancy – the role is genuinely no longer required due to operational changes.

• Capacity – inability to perform inherent job requirements (health, qualifications).

Whatever the valid reason may be there must also be procedural fairness. Many unfair dismissal claims against employers are successful, not because there wasn’t a valid reason but because the employer acted hastily and did not follow the correct steps.

In each of the valid reasons set out above there are steps to follow, and they can differ from case to case.

If you are considering the termination of an employee a five-minute phone call can ensure that you minimise the risk of an unfair dismissal claim in the Commission going against you.

Andrew can provide you with the relevant information and the correct paperwork to assist.