What is a Show Cause letter.

Many employers lose unfair dismissal cases not because there was not a valid reason for the termination of employment but because they did not follow procedural fairness.

Procedural fairness means that the employee is

- Made aware of the allegations of misconduct or poor performance, preferably in writing,

- Has the opportunity to respond to the allegations of misconduct or poor performance,

- Not denied the right to have a support person present, and

- Provided proper consideration to the response, the length of service and prior warnings.

In some cases, the misconduct is so obvious and serious that the termination of employment is considered a likely outcome. However, in such cases there still needs to be procedural fairness, and the employer may issue a show cause letter. This sets out the issues of concern and advises the employee that there will be a meeting in order for the employee to show cause, that is, provide reasons, as to why their employment should not be terminated. This gives the employee the opportunity to respond to the areas of concern before a decision is made as to whether the employment will be terminated.

Show cause letters should not be issued without proper consideration. Just because there has been misconduct does not mean that termination is the outcome. The employee may be able to provide relevant information as to why the conduct happened, and also provide evidence that indicates that the termination of employment is too severe an outcome.

It is always best to get advice before proceeding with any disciplinary matter. If you have any concerns as to an employee’s conduct or performance contact Andrew before making any decisions as to termination.