Unlawful Dismissal

 

 

 

1. In relation to Employment Law, using cases to illustrate where necessary, complete 
the following: 
i. 
ii. 
iii. 
iv. 
v. 
Explain Unlawful Dismissal; (4 marks) 
Explain Unjustified/Unfair Dismissal; (4 marks) 
Name the court or tribunal that deals with each; (3 marks) 
What are the processes of each court or tribunal; (5 marks) 
List the awards each court or tribunal can make. (4 marks) 
2. Using the case facts laid out below, and with the use of the relevant statute(s) and 
two (2) decided cases: 
(a) Analyse whether John is an employee or independent contractor [10 marks] 
(b) Discuss the validity of John’s termination where it is found that: 
i. He is an employee [5 marks] 
ii. He is an independent contractor [5 marks] 
John, a graphic designer, has worked for a company, TechCreatives, for the past two years. 
Initially, John was hired on a contract basis to help design websites for the company’s 
clients. His arrangement with TechCreatives was framed as a “freelance” contract, and he 
submitted invoices monthly for payment. The company provided John with a steady stream 
of work, and he would receive detailed instructions on the clients’ needs, the deadlines, and 
the specifications for each project. 
Over time, John’s responsibilities expanded, and he began working on several long-term 
projects for TechCreatives. The company now provides him with office space, a computer, 
and software licenses needed for his work. Though John has continued to be paid on a per
project basis, now reports to the office every day and is required to attend team meetings. 
TechCreatives also controls when his deliverables are due and has started to withhold tax 
for his payments. Furthermore, John has started to receive benefits, including health 
insurance, and is encouraged to participate in company events. John’s family has even 
begun to refer to him as a “full-time” employee of the company, though his formal contract 
has not changed. 
At the end of the second year, John is told that his contract with TechCreatives will not be 
renewed due to budget cuts. TechCreatives tells him that it is terminating his contract for 
“operational reasons” but assures him that it has “no issues” with his work performance. 
However, John believes that he was unfairly terminated because he was informed with little 
notice and feels that his work history at the company should have afforded him greater 
protections. 
John decides to sue TechCreatives for wrongful termination, arguing that he was an 
employee entitled to the protections of the requisite labour laws. He also contends that the 
company’s treatment of him - providing him with equipment, controlling his hours, and 
offering benefits - makes him an employee rather than an independent contractor. 
In response, TechCreatives argues that John was always an independent contractor, as he 
invoiced for services rendered, had the ability to work for other companies, and his status 
was made clear at the outset of the agreement. The company claims that it had the right to 
end the contract at any time under the original terms, as it did not involve a permanent 
employment relationship.
 

Sample Answer

 

 

 

 

 

 

 

 

Employment Law: Dismissal and Tribunals

 

 

i. Explain Unlawful Dismissal

 

Unlawful Dismissal (often referred to as Wrongful Dismissal in some jurisdictions) refers to a termination that constitutes a breach of contract by the employer. It is a common law cause of action. The most common form of unlawful dismissal occurs when an employee is dismissed without the notice period required by the contract of employment or by statute, or if the employer terminates the contract in a manner that breaches another express or implied term of the contract.

Illustration: If a contract requires one month's notice, and an employee is dismissed instantly without justification that constitutes gross misconduct (which would justify summary dismissal), the employer has committed an unlawful dismissal.

Illustration: If a contract requires one month's notice, and an employee is dismissed instantly without justification that constitutes gross misconduct (which would justify summary dismissal), the employer has committed an unlawful dismissal.

Case Example (General Principle): Cases like Payzu v Saunders (though concerning general contract law, the principle applies) established that damages for breach of contract are generally aimed at putting the injured party in the position they would have been in had the contract been performed—meaning, the employee is typically entitled to the wages and benefits they would have received during the correct notice period.

 

ii. Explain Unjustified/Unfair Dismissal

 

Unjustified/Unfair Dismissal is a statutory cause of action where the termination of an employee's contract is held to be unfair because the employer did not have a valid reason for the dismissal and/or did not follow a fair procedure.1 It goes beyond the terms of the contract and looks at the substance and process of the termination.

 

Statutory requirements typically mandate that a dismissal is only fair if it relates to:

The employee's conduct (e.g., misconduct).

The employee's capability or qualifications for the job.

The employer's operational requirements (redundancy or reorganisation).

A contravention of the law.

Some other substantial reason of a kind that warrants the dismissal.

Illustration: An employer dismisses an employee for poor performance (a potentially valid reason) but fails to give the employee prior warnings or an opportunity to improve.2 While the reason relates to capability, the procedure was unfair, making the dismissal Unfair/Unjustified.

 

Case Example (The Burchell Test): In the UK, the Burchell test (from British Home Stores Ltd v Burchell) is often used to assess fairness based on conduct: Did the employer genuinely believe the employee was guilty?3 Did the employer have reasonable grounds for that belief? Did the employer carry out as much investigation as was reasonable in the circumstances?

 

 

iii. Name the court or tribunal that deals with each

 

Type of ClaimCourt/Tribunal
Unlawful/Wrongful DismissalHigh Court or Employment/Labour Court/Tribunal (depending on the jurisdiction's specific allocation of power)
Unjustified/Unfair DismissalEmployment/Labour Court or Industrial/Employment Tribunal (the statutory body dedicated to employment disputes)