Fair Procedures & Employment Injunctions

The Court of Appeal in Ireland this week delivered a seminal judgment that will make the obtaining of injunctions restraining the dismissal of employees more difficult for employees.

The Court determined that if an employer has a contractual right to dismiss an employee on notice without giving any reason a Court cannot imply a term into the contract that the dismissal can only take place if fair procedures have been afforded to the employee, except where the employee is dismissed for misconduct.

The extensive written Court of Appeal decision in O’Donovan V Over-C Technology allowed an appeal against an earlier order of the High Court granting an injunction restraining the employer from dismissing an employee on probation, for performance issues where the dismissal was on notice and summary and without fair procedures having been applied.

The effect of the decision in O’Donovan V Over-C Technology is that the principles of natural justice or fair procedures apply to cases involving dismissal for misconduct but not to termination on other grounds. There is no legal basis to argue that the principles applicable under the Unfair Dismissals Acts should be imported into the common law.

It is important to note this judgment relates solely to injunctions seeking to prevent dismissals of employees.

The separate statutory rights of qualifying employees not to be unfairly dismissed under the Unfair Dismissals Acts continue. An employer remains obliged to implement the principles of fair procedures under the statutory code or face orders of reinstatement, reengagement or compensation for employees who are dismissed.

For more information on this topic please contact David Pearson, Partner and Head of Employment Law at J.W. O’Donovan LLP, by email at dpearson@jwod.ie

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