Dismissal question

[WeeBitWobbly]

We have a woman who has worked for us for seven months in our small business. 20 hours per week. Things are not working out for various reasons, mainly not enough clients come in to cover her costs but also her attitude is pretty poor and financially we have to cut back. The business will survive without her, other staff have space to see her clients.
She has been less than a year so wondering how best to word a dismissal letter.
Do we have to put down reasons?
I don't want it to feel like it will become a slaying match.
And I want to make sure we do the right thing legally.
Thanks in advance

If you can't afford her and won't replace her , then surely it is a simple case of redundancy rather than sacking her for poor performance? I think you need to be honest and straight with her, words to the effect of "not enough business to support her role". Do you have a solicitor you use who could check the letter over?

Another thought - will there be other women left in your business? DH's company sacked a girl for similar reasons, and she tried to sue them for sexual discrimination as she was the only girl on the team. However, there was sufficient evidence of poor performance, disciplinary action etc to show that she was the most appropriate person to loose.

You don't have to give a reason but she will of course ask so I would put something brief. I wouldn't call it redundancy though.

Ok thanks.
We are considering offering alternative contract, self employed percentage. So the stress on ensuring we have enough to pay her does not exist but she still has the option to earn money, would probably be what she has earned to date but also could be more if she self promotes etc.
Is that making things more difficult for us?
No sexist concerns, as one. Of each still working here.

It is either

a performance issue - ie: the post still exists and is required, and is affordable, but she's not up to the job

or

a redundancy situation - there is not enough money to pay all the staff.

If it's redundancy, be careful that you can justify how you've chosen the candidate that you are dismissing, you should choose fairly and equitably, and not bring any unresolved performance issues into the equation.

Be very cautious about offering a former employee work on a self-employed basis - it may look to HMRC as though it IS employment, but just for fewer hours.