Jargon Buster – U

Word
Meaning

Unauthorised Absence

An odd day off when an employee gives no reason for the absence.

Unlawful Dividend

Insufficient profits exist within the company to cover amounts paid. Companies Act 2006 states, “a dividend or distribution to shareholders may only be made out of profits available for the purpose.”

Unfair Dismissal

Employees of any age are able to make a claim for unfair dismissal (as long as they have 24 months’ service). A dismissal may be fair or unfair, depending on the reason for dismissal and whether the employer acted ‘reasonably’ in the circumstances. You should bear in mind that employment tribunals follow previous legal decisions in deciding/
defining what is ‘reasonable’. To dismiss an employee fairly, you must first have a fair reason for doing so.