How Managers Can Avoid Lawsuits For Unfair Dismissal

Bonisiwe Shabane

-Oct 30, 2025, 4:36 AM

how managers can avoid lawsuits for unfair dismissal

Firing an employee is one of the most legally sensitive actions a manager can take. If not handled properly, it can lead to lawsuits, financial penalties, reputational damage, and legal disputes. To protect the company from legal challenges, managers must ensure fair, transparent, and legally compliant dismissal procedures. At Ultimate Forensic Consultants, we help companies avoid wrongful termination lawsuits by ensuring HR compliance, proper documentation, and fair disciplinary procedures. This guide explains how managers can avoid lawsuits from employees who feel they were fired unfairly, including best practices, legal steps, and risk management strategies. An employee may sue for wrongful termination if they believe they were fired without just cause or due process.

🚫 No Valid Reason Given – Employee was fired without cause or explanation.🚫 Discrimination – Dismissal based on race, gender, religion, age, disability, or pregnancy.🚫 Retaliation – Employee was fired for reporting misconduct, whistleblowing,... In a perfect world, employees perform optimally, enjoy high job satisfaction, and stay with one company until retirement. This type of perfection rarely exists. According to the U.S. Bureau of Labor Statistics, the median employee tenure with a single company is 3.9 years. While some staff members resign voluntarily, others are involuntarily terminated.

Improper or illegal terminations expose companies to consequential legal issues and financial risk. Employers must attempt to close all possible doors to post-termination litigation to avoid lengthy and expensive legal battles, adverse publicity, and any detrimental impact on employee morale. Make sure your employees understand their job responsibilities, the company’s policies and code of conduct, any performance issues, and ways to improve their performance. That said, the most important way to avoid litigation is by adhering to all applicable federal, state, and local laws concerning employment. Never fire an employee for an improper or illegal reason. Doing so leads to accusations of discrimination, retaliation, or breach of contract.

Emotions run high following an involuntary discharge and some ex-employees are just looking for a fight. While nothing can totally bar former workers from pursuing legal action, employers can take steps to take the wind out of these individuals’ litigious sails. Get a free trial of Practical Law, the how-to resource with termination best practices, protocols and practical tips for employers on legal risks. The best way to escape a lawsuit it to avoid its inception. Implementing and following proper termination practices minimizes the risk of encountering a wrongful termination claim. Before initiating a dismissal process, employers must understand all applicable federal and state employee termination laws and policy requirements.

To protect confidentiality, only include critical individuals in discussions. Deciding whether to dismiss someone for misconduct is tough. It’s not just about whether the behaviour was bad enough — it’s about whether your decision will stand up as fair and reasonable. Get this wrong and you risk grievances, appeals, or even an employment tribunal. Get it right and you protect yourself, the business, and your team’s trust in your leadership. Here’s what you need to know as a manager — and how to put it into practice.

Under the Employment Rights Act 1996, “conduct” is one of the potentially fair reasons for dismissal. In today’s workplace environment, avoiding wrongful termination lawsuits is crucial for both employees and employers. Employers should prioritize clear documentation of performance-related issues and maintain open lines of communication with employees. This proactive approach not only safeguards against legal disputes but also fosters a positive workplace culture. Understanding the legal landscape surrounding termination is essential. Employers must be aware of local labor laws and ensure that their practices align with these regulations to minimize the risk of litigation.

By implementing fair and consistent policies, they can better protect their organizations from potential claims. Training managers and HR personnel on best practices can further reduce risks. Equipping them with the tools to handle employee grievances effectively can prevent misunderstandings that may lead to costly lawsuits. Taking these steps is vital for maintaining a healthy work environment and ensuring legal compliance. Wrongful termination covers various illegal employment practices. It can happen when an employee is let go for discriminatory reasons or in violation of established laws or regulations.

Recognizing what constitutes wrongful termination is crucial for both employees and employers. Wrongful termination occurs when an employee is fired in violation of federal or state laws, contractual agreements, or public policy. Examples include dismissals based on discrimination due to race, gender, age, or religion. Additionally, it can apply when an employee is terminated for exercising legal rights, such as reporting illegal activities or filing for workers’ compensation. If an employee is successful at proving constructive discharge, your business may face a five- to six-figure lawsuit. Other than preventing costly litigation, avoiding wrongful termination lawsuits is important because it’s the right thing to do.

By preventing and investigating harassment and discrimination in your workplace, you create an environment that is safe for everyone. As a result of your efforts, you can also decrease the odds of having and losing a wrongful termination lawsuit. In a landmark case involving the National Labor Relations Board (NLRB), constructive discharge was first created as a legal doctrine. Back then, employers in the 1930s used harassment and intimidation to get employees to quit rather than having to fire them. In the 1938 Foods v. NLRB case before the Supreme Court, this method of effectively firing workers was deemed illegal.

In a Mission to Grow podcast on avoiding wrongful termination lawsuits, Brian J. Shenker, principal in the Long Island, New York, office of Jackson Lewis P.C., talked about constructive discharge in the United States today. According to Shenker, “The Supreme Court has defined this doctrine as an employee’s reasonable decision to resign because of unendurable working conditions so that it’s equated with a formal discharge by the employer.” The Equal Employment Opportunity Commission (EEOC) defines a constructive discharge to be any time when you’re effectively forcing an employee to leave by making work conditions so intolerable that they can’t stay. To fit the doctrine of constructive discharge, three key facts must be true. By Louise Gillibrand, HR Policy Consultant, Moorepay

Barely a day goes by without an unfair dismissal claim hitting the headlines. Many of these claims are down to employers failing to follow a full and fair procedure. So, read on for six ways to avoid unfair dismissal claims. It’s important that employers follow their organisation’s HR procedures, including any that could lead to an employee being dismissed. You should also be mindful that employees have access to an abundance of information on unfair dismissal claims on sites such as GOV.UK, ACAS and Citizens Advice. While you may think that you’ve dismissed an employee fairly, it’s still possible for an individual to bring a claim of unfair dismissal.

An employee can usually bring a claim for unfair dismissal when they’ve completed two years of continuous service. An employee may say for example: That the dismissal was unfair because you did not follow the correct process for disciplinary and dismissal. Terminating an employee can be a complex matter that carries a risk of an unfair dismissal claim against the employer, no matter how careful the company may be. When letting an employee go, it is important that it is done legally and in a fair, just and reasonable manner. Under Polish law, employment contracts can be terminated by the employer either in a regular mode (i.e.

with the notice period) or for disciplinary reasons (i.e. without the notice period). What is specific for Polish law, is that there has to a concrete and objective reason for terminating the contract by the employer otherwise the employee can be reinstated by the court in the... In the case of termination for disciplinary reasons, there has to be gross violation of basic duties by the employee, for instance drinking alcohol in the workplace or not coming to work. The termination letter in case of a disciplinary dismissal should indicate circumstances of the gross violation of basic duties and decision of the employer to terminate the employment immediately. In the case of termination in a regular mode (i.e.

with the notice period), there has to be sufficient grounds for dismissal otherwise the employee can be reinstated by the court in the case of a court dispute. What are the sufficient grounds? Reasons for terminating employment contract

How Managers Can Avoid Lawsuits For Unfair Dismissal

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