Where do you stand if you hire the wrong person?

However thorough your selection processes it is possible to hire the wrong person, but where do you stand as an employer if you do?

Many are worried they will be sued for unfair dismissal, but in fact an employee needs to have completed two years’ continuous service with you before they enjoy this protection. There are some exceptions to this general rule however, so be careful.

This is not to say they have no recourse. They are for example protected against discrimination from day one and they could argue breach of contract if your employment contracts are badly written.

Unless you are an employment specialist it is important to take professional advice on how to deal with things, including how you should communicate with the person concerned.

Directors and shareholders

If you want to let a statutory Director or shareholder go, things are rather more complicated.

You will need to follow a different process and in particular read through the shareholders’ agreement to check what happens as regards the shares. Ideally you want to know that you can get them back.

Again, it is important to take advice and to make sure you have the right shareholder agreements in place before you have a problem.

Using your discretion as the business owner

Ultimately you are the boss, so you can ask anybody to leave whom you would rather not have around.

The question is, what will the consequences be?

This depends entirely on the circumstances and how you believe the employee will respond. Will they negotiate or ‘go to war’?

If the latter, you can take expert advice to quantify the likely compensation payable and legal costs.

From here you can make a decision.

Safeguarding your reputation

One thing we always recommend: aim to treat unwanted employees fairly and honestly.

This will make people more amenable to finding a solution and help protect your reputation as a decent employer in your community.

You might even find some employees are relieved to have things out in the open if they are underperforming in job they dread.

If you would like to discuss any aspect of employing people or running your business, please get in touch.

Here are the types of cases we handle:

  • Contracts of Employment
  • Employer Staff Handbooks
  • Redundancy Process
  • Breach of Contract
  • Breach of Restrictive Covenants
  • Tribunal Claims
  • Settlement Agreements
  • Consultancy Agreements

Sports and Football Law

  • Contracts of Employment
  • Service Agreements
  • Contractual Issues
  • Executive Departures

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