Unfair Dismissal

If you believe you have been unfairly dismissed from your employment, you may have a claim in the Employment Tribunal.

Unfair dismissal occurs where an employer dismisses an employee without a fair reason or without following a fair procedure. Both the reason for dismissal and the way in which the dismissal was carried out are important.

What Is Unfair Dismissal?

Under UK law, an employer must show:

  • that they had a potentially fair reason for dismissing you; and
  • that they acted reasonably in all the circumstances, including following a fair procedure.

If the employer fails to do so, the dismissal may be unfair.

Do I Qualify to Bring a Claim?

Current Law

In most cases, you must have two years’ continuous service with your employer to bring a claim for unfair dismissal.

However, you do not need two years’ service if the dismissal is for an automatically unfair reason, such as:

  • pregnancy or maternity
  • whistleblowing
  • asserting a statutory right
  • health and safety activities
  • trade union membership or activities
  • certain discrimination-related reasons

These claims can be brought from day one of employment.

Upcoming Changes

Legislative reforms are expected to reduce the qualifying period for unfair dismissal from two years to six months’ service. Once in force, this will allow more employees to bring claims at an earlier stage of employment.

The time limit for bringing a claim is also expected to extend from three months to six months, although currently the deadline remains three months less one day from the date your employment ended.

Fair Reasons for Dismissal

There are five potentially fair reasons for dismissal:

  • Conduct
  • Capability or qualifications
  • Redundancy
  • Statutory illegality
  • Some other substantial reason

Even where one of these reasons applies, your employer must still act reasonably and follow a fair process.

Fair Procedure

In most situations, a fair process will include:

  • carrying out a reasonable investigation
  • informing you of the allegations or concerns
  • giving you an opportunity to respond
  • allowing you to be accompanied at disciplinary meetings
  • providing a right of appeal

Employment Tribunals frequently refer to the ACAS Code of Practice on Disciplinary and Grievance Procedures when deciding whether a dismissal was fair. Failure to follow the Code may increase compensation awarded.

Automatically Unfair Dismissal

Some dismissals are automatically unfair, meaning that no qualifying period applies and the employer cannot justify the dismissal simply by arguing reasonableness.

Examples include dismissal:

  • because of pregnancy or maternity leave
  • for whistleblowing
  • for asserting statutory rights
  • related to health and safety matters
  • connected to trade union activities

Reforms are also expected to strengthen protection for employees dismissed for participating in lawful industrial action.

Time Limits

You normally have three months less one day from the effective date of termination to bring a claim in the Employment Tribunal.

Before issuing a claim, you must notify ACAS Early Conciliation and obtain a certificate.

Future reforms are expected to extend the limitation period to six months, but at present the three-month deadline still applies.

Compensation

If your claim succeeds, the Tribunal may award:

  • a basic award, calculated based on age, length of service and weekly pay; and
  • a compensatory award, designed to reflect your financial loss.

At present, compensatory awards are subject to a statutory cap. Legislative changes are expected to remove this cap, potentially increasing the level of compensation available in successful claims.

In some cases, the Tribunal may also order reinstatement or re-engagement, although this is less common.

Constructive Dismissal

If you resign because your employer has fundamentally breached your contract of employment, you may have a claim for constructive dismissal. Examples may include:

  • serious breaches of contractual terms
  • failure to address bullying or harassment
  • unilateral reduction in pay or status

Constructive dismissal claims are complex and depend heavily on the facts.

How We Can Help

If you believe you have been unfairly dismissed, it is important to seek legal advice as soon as possible. Strict time limits apply.

Our employment solicitors can advise you on:

  • whether you qualify to bring a claim
  • the strength of your case
  • potential compensation
  • negotiating a settlement
  • representation at the Employment Tribunal

Early advice can help protect your position and maximise your prospects of success.