Fair Dismissal refers to dismissal of an employee for a lawful reason. Lawful reasons are: capability, qualifications or conduct, redundancy, illegality, and other substantial reasons.
For example, in the state of Alabama, the Fair Dismissal Act (Code of Ala. § 36-26-100), governs the procedure for fair dismissal. The purpose of the act is to provide employees a fair and swift resolution of proposed employment terminations. There are six necessary steps for termination of employment under the Alabama Fair Dismissal Act. They are :
Step 1- The Board's letter notifying the employee of the proposed termination;
Step 2- The employee's letter of intention to contest the proposed termination;
Step 3- The Board's decision to dismiss the employee;
Step 4- The employee's request for an appeal and hearing;
Step 5- The selection of an employee review panel; and
Step 6- The hearing and final disposition by the review panel. [Perine v. Kennedy, 868 So. 2d 1123, 1127-1128 (Ala. Civ. App. 2003)]