Free guide for business owners
9 employee situations that turn into tribunals
Most employee problems don't become expensive because they're complicated. They become expensive because they're handled the wrong way, or left too long. These are the nine that catch owner-managed businesses out most often, and what to do instead.
Handled early, it's a conversation. Handled late, it's a claim.
Written for owner-managed businesses: owners, directors, and the managers who handle people problems day to day. No HR department needed.
★★★★★ 5.0 from 18 Google reviews · FCIPD Chartered Fellow · 25+ years
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Inside the pack
- ✓ The first-48-hours checklist
- ✓ An investigation planner
- ✓ The 5 questions to ask before you act
A tribunal doesn't just judge whether your decision was right. It judges whether your process was fair. That's why owners lose cases they should have won, and why getting the first steps right matters more than almost anything else.
A mishandled dismissal can run into five figures, with unfair dismissal awards reaching up to £115,115, plus months of management time and stress. The free Action Pack helps you get the first steps right.
The nine
Recognise any of these?
You dismissed someone in the heat of the moment
Something happens, tempers go up, and the words "just go, you're done" come out. It feels justified in the moment. The problem is that a dismissal needs a fair reason and a fair process, and neither survives a decision made in anger. This is one of the most common ways a manageable problem becomes an unfair dismissal claim.
The fix: Never dismiss in anger. Step back, follow a fair process, and get the decision sense-checked before anything becomes final.
You ignored a grievance, or handled it "informally"
Someone raises a concern, you deal with it quietly over a coffee, and you assume it's sorted. Then it comes back, in writing, as a formal grievance. Once a complaint is on record, how you respond matters far more than what caused it. A grievance that's brushed off or handled off the books is one of the clearest routes to a constructive dismissal claim.
The fix: Acknowledge it in writing, investigate it properly, give a clear answer, and allow an appeal.
You managed long-term sickness without a process
An employee is off for weeks, then months, with no plan, no occupational health referral and no return date. The pressure on the business is real, so eventually a decision gets made to move them on. If the illness could count as a disability, and many do, that decision carries a discrimination risk on top of unfair dismissal.
The fix: Stay in gentle, regular contact, get proper medical input, and make a documented plan before any decision.
You tackled underperformance with a quiet word, not a process
You've mentioned it a few times. Nothing has been written down, there's no improvement plan, and no formal warnings. Then patience runs out and they're let go. Without a paper trail showing a fair chance to improve, a dismissal for performance is hard to defend.
The fix: Set clear expectations, give real support, and keep a simple written record of every conversation. That record is what protects you.
You went straight to a disciplinary without investigating
You're sure of what happened, so you skip ahead to the outcome. But a disciplinary decision made without a fair investigation is a decision that can be unpicked. Even when you're right about the facts, missing this step is one of the easiest ways to lose a case you should have won.
The fix: Investigate first, keep it proportionate, and wherever possible keep the investigator and the decision-maker separate.
You made someone redundant without genuine consultation
The role has to go, the decision feels obvious, so you move quickly and tell them it's done. Redundancy is a fair reason for dismissal, but only if the process is genuine. A redundancy that's really about the person, or that skips consultation, is a sham redundancy in the eyes of a tribunal.
The fix: Run real consultation, use a fair selection method, and look at alternatives before you announce anything.
You mishandled a pregnancy or maternity situation
A performance or restructure decision happens to land while someone is pregnant, on maternity leave, or has just returned. This is the highest-risk area of all. Pregnancy and maternity are protected from day one, with no minimum service needed, and dismissals here can be automatically unfair as well as discriminatory.
The fix: If any decision involves someone in this position, get advice before you act, not after.
You suspended someone as a knee-jerk reaction
Something serious is alleged, so the instinct is to suspend straight away. But suspension is not a neutral act, and reaching for it by default can itself breach trust and confidence and support a constructive dismissal claim.
The fix: Only suspend when it's genuinely necessary, keep it as short as possible, and take advice first.
You tried to "just pay them to go" the wrong way
You want a clean exit, so you offer a sum to leave. Done properly, this is a sensible and legitimate route. Done wrong, it backfires. A settlement offer made outside a protected conversation can be used as evidence against you, and a settlement agreement is only binding once the employee has had independent legal advice.
The fix: Use a protected conversation, get the groundwork right, and make sure they take independent legal advice so the agreement holds.
Get all nine as a print-and-keep toolkit
The first-48-hours checklist, an investigation planner, and the 5 questions to ask before you act. Instant download, a copy lands in your inbox too.
“Samantha helped us through a long-term sickness issue and saved us from expensive employment law problems. Her advice was invaluable.”
“Her guidance helped us feel confident in our decisions, while keeping respect and dignity for everyone involved.”
Who wrote this
You deal directly with the specialist
Samantha Newton FCIPD · Chartered Fellow of the CIPD
An Employee Relations specialist with 25+ years' experience, including senior roles at Williams Racing, Pets at Home and NHS Primary Care. When a good employee becomes a problem, I sort it, properly and quietly. No call centre, no junior, no jargon.
More about SamanthaCommon questions
Questions business owners ask
Do I have to follow a process if I'm sure the employee did it?+
Yes. A tribunal judges whether your process was fair, not just whether your decision was right. Even when you're certain of the facts, skipping the investigation or the correct steps can make a fair decision unsafe. Getting the process right is what makes the outcome stick.
How long does someone need to work for me before they can claim unfair dismissal?+
Currently, most ordinary unfair dismissal claims need around two years' continuous service. But important exceptions, including discrimination and pregnancy or maternity, apply from day one with no minimum service. The rules in this area are changing, so it's worth checking the current position before you rely on it.
Can I just pay an employee to leave?+
Sometimes a clean, agreed exit is the smart move, through a settlement agreement. But it only protects you if it's handled correctly: raised in a protected conversation, with a genuine reason and process behind it, and signed off after the employee has taken independent legal advice. Done badly, the offer itself can be used against you.
What should I do in the first 48 hours of an employee problem?+
Don't act in anger and don't make promises. Preserve any evidence, check the contract and relevant policy, keep it confidential, and get anything irreversible (suspension, dismissal, formal accusations) sense-checked before you do it. The free Action Pack on this page walks you through exactly this.
When should I get professional HR advice?+
Before you act, not after. Especially if a disability, pregnancy or long-term sickness might be involved, or if you're not sure which process you're on. Early advice almost always costs less than unpicking a process that has already gone wrong.
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