Dismissing Employees

5. Special Cases

Some of the more common situations which lead to confusion or problems are outlined below. If in doubt, take legal advice.

5.1 Many directors are both office-holders and employees.

• A director may be removed from office in accordance with the company's Articles of Association or the requirements of the Companies Act 2006 but may nevertheless remain an employee.
• A director who is also an employee has the same legal protection against unfair or unlawful dismissal as other employees.

5.2 You cannot usually dismiss employees taking 'protected' (official) industrial action, unless this has gone on for more than 12 weeks. You must also have taken reasonable steps to resolve the dispute.

• If you get this wrong, it will be unfair dismissal.
• Employees taking unofficial strike action can be dismissed.

5.3 You can dismiss a temporary replacement once the permanent employee returns to work (eg after maternity leave).