Dismissing an employee with short service can seem straightforward, but it still requires careful handling to avoid potential pitfalls. While those with less than two years’ service typically have fewer protections, that doesn’t mean employers can act without consideration. In this blog, we’ll explain what short service dismissal is, what the legal requirements are, and how to manage the process fairly and professionally. Whether you’re looking to understand your obligations or ensure your process stands up to scrutiny, this guide will help you navigate short service dismissals with confidence.
What is a short service dismissal
Short service dismissal refers to the termination of an employee’s contract when they have less than two years of continuous service with an employer. Employees with under two years’ service generally have fewer rights to make an unfair dismissal claim unless the reason is automatically unfair (such as discrimination, whistleblowing, or health and safety concerns). This also typically means employers won’t have to pay any redundancy payment. However, this depends on what their employment contract states.
While employers still need to act fairly and follow appropriate procedures, the process for dismissing a short-serving employee is typically more straightforward.
Suggested changes in the Employment Rights Bill
One of the key proposals in the Employment Rights Bill relates to short service dismissal. The Government has suggested introducing a ‘lighter-touch’ approach by significantly reducing the threshold for what qualifies as short service — potentially to as little as six to nine months.
While the specifics of this new approach have yet to be confirmed, it remains unclear how it will differ from the current rules. It may simply replicate the existing process under a new label, but with a shorter qualifying period. Nonetheless, employers should be mindful that changes are on the way and ensure they stay informed as further details emerge.
Grounds for Unfair Dismissal
Even though staff with less than 2-years service currently qualifies for short service dismissal, it still comes with its challenges. Before going ahead with the process, its important to ensure you are not breaching any employment rules. Here are some situations where employees can claim unfair dismissal:
Not wanting to give up certain rights
If an employer chooses to dismiss an employee to avoid granting them statutory rights, they significantly increase the risk of facing an unfair dismissal claim. This risk applies even in cases where the employee has less than two years’ service, particularly if the dismissal is linked to protected rights—such as refusing to work more than an average of 48 hours a week under the Working Time Regulations.
Family leave
If you have dismissed an employee due to them exercising their right to maternity or paternity, shared parental leave or adoption leave, they have a right to automatically claim unfair dismissal.
Refusing to carry out certain tasks
You cannot go ahead with short service dismissal due to the staff member refusing tasks that pose health and safety risks to themselves or others, such as unsafe lifting or unqualified machinery use.
Joining a trade union
Employees have the right to join a trade union, and it is unlawful for an employer to dismiss them for exercising this right.
Protected characteristics
You should also have a clear understanding of protected characteristics and ensure that the decision to terminate of a contract is not linked to them in any way. Protected characteristics include:
- Sex
- Disability
- Age
- Gender Reassignment
- Pregnancy
- Maternity
- Race
- Sexual Orientation
- Mariage
- Civil Partnership
- Religion or Belief
If a claim is successful, there are no limits to the compensation that may be awarded.
Dismissal Process
It’s important to carefully plan your short service dismissal process to avoid any legal issues along the way. Here are some steps to follow:
What is the reason for terminating the contract?
The first thing to consider is why you have decided to dismiss the employee. If it’s due to breach of contract or gross misconduct , you must collect evidence before proceeding with this.
If the role is redundant or you are having to make cuts within the business due to financial challenges, there are steps you should follow:
Initial Letter
Once you have determined the termination of contract is lawful, you should draft a letter to inform your employee. You must ensure the reason for dismissal is clearly stated in the letter. If you would like us to draft a letter for you, our HR team are more than happy to help.
Hold a Meeting
Once you have informed them of the possibility of short service dismissal, organise a meeting to discuss this in more detail. The decision to dismiss should only be made after this meeting. Make sure to give the employee enough time to prepare. You should also make it clear to them that they have a right to bring along representation such as a trade union rep.
Short Term Dismissal Letter
Once you have made your decision, you should let your employee know as soon as possible. This should be done through a dismissal letter. You should make it clear that they can appeal this decision and clear instructions on how to do this.
The Appeal
If possible, appoint someone who didn’t take part in the original dismissal to take on the appeal process.
How The HR Booth Can Help
Navigating short service dismissals can be tricky — even when the process seems straightforward. Mistakes in handling these dismissals can lead to unnecessary disputes, legal costs, and reputational damage. That’s where The HR Booth comes in.
We support businesses across the UK with practical, compliant, and people-focused HR advice. Whether you need help drafting letters, conducting meetings, or ensuring your process is fair and legally sound, our team of experienced consultants are here to guide you every step of the way.
We can:
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Review the circumstances and provide tailored advice on whether dismissal is appropriate
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Help prepare legally compliant documentation, including dismissal and appeal letters
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Support or conduct meetings on your behalf
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Provide training or coaching on handling sensitive employment matters
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Keep you up to date with changes to employment law, such as developments in the Employment Rights Bill
If you’re considering a short service dismissal or simply want to make sure your procedures are up to scratch, speak to our team today. We’ll help you handle the situation with clarity, confidence, and professionalism.
Contact Us
Ready to get expert HR advice on short service dismissal? Reach out to The HR Booth today by calling us on 01383 668178 or email advice@thehrbooth.co.uk. You can also visit our website to find more resources, guides, and support.
