(Solution) New 5HR01 (AC3.1) Explain the principles of legislation relating to unfair dismissal in respect of capability and misconduct issues

Short references should be added into your narrative below. Please remember to only list your long references in the reference box provided at the end of this section. 

Word count: Approximately  400 words

Capability and Unfair Dismissal
Under Section 98(2)(a) of the ERA 1996 an employer can fire an employee because the person lacks ability to do the job according to UK Government (2025). When an employee underperforms employers can dismiss them for capability problems when they show solid proof of poor results and follow systematic performance improvement steps with training and assistance options. Under British equal rights law employers must take necessary changes for workplace accessibility before ending employment with disabled workers.

Employees deserve fair capability dismissals which depend on proper performance review practises and support from their employers. If management fails to teach a worker new system basics before firing them they violate fair dismissal standards. An employer must provide proper notice regarding performance problems plus chances to enhance skills before ending employment. HR needs to supervise managers during these actions to benefit both the organisation and staff.

Misconduct and Unfair Dismissal

Worker discipline falls under two groups: standard misconduct and serious misconduct (ACAS 2024). Worksites penalise employees who break small rules_known as ordinary misconduct_by enforcing minor discipline actions like time lateness and disobedience. An employee fired for regular workplace rule breaking generally faces unfair treatment except when their employer clearly warned about this and followed established disciplinary procedures.

A worker can be terminated right away for serious workplace offences like stealing from the company property, using harmful behaviour against colleagues or making fraudulent choices. Once bosses complete their proper investigation they need to let workers explain their side before ending their employment. An employer’s decision to end the employee relationship becomes invalid when they needlessly conduct an improper investigation or refuse to let their employee explain their situation.

For example, when an employee shows up late too often the company should not fire that person right away without allowing them time to change their behaviour. When employees report theft to the company without getting investigated before termination they can defend themselves in court (CIPD 2023). HR needs to lead managers in building a lawful routine to fire employees accused of misconduct.