Association of Chartered Certified Accountants (ACCA) Certification Practice Test

What could be a valid reason for fair dismissal?

1. Employee's lack of motivation

2. Redundancy

3. A personal dispute with management

4. Failure to comply with workplace dress code

The correct answer is: Redundancy

Redundancy is a valid reason for fair dismissal as it occurs when an employer needs to reduce its workforce due to various factors, such as economic downturns or changes within the company that require a shift in resources. In such cases, the positions that are no longer necessary are usually identified, and the employees in those roles may be dismissed in line with the proper legal procedures. It is important for the employer to follow a fair process, which often includes consulting with affected employees and offering support, such as redundancy packages. Other reasons listed, like lack of motivation or personal disputes with management, do not typically constitute fair grounds for dismissal without preceding evidence of performance issues or a clear violation of company policy. Similarly, failure to comply with the workplace dress code might lead to disciplinary action but typically would not warrant a summary dismissal unless it is part of a serious or repeated infringement of company policy. Redundancy offers a concrete, and often unavoidable, rationale within the context of organizational change and employee rights.