Unfair Dismissal Claims in Liverpool
Key Takeaways
| Critical Point | Legal Insight |
|---|---|
| Qualifying Period | You need two years’ continuous service to bring an unfair dismissal claim, although exceptions exist for automatically unfair reasons under the Employment Rights Act 1996. |
| Time Limits Matter | You must lodge your claim with an Employment Tribunal within three months less one day of your dismissal date, making swift action essential. |
| Automatic Unfair Dismissal | Dismissals related to whistleblowing, maternity, or health and safety complaints don’t require any qualifying service period to claim. |
| Compensation Awards | Tribunals can award a basic award plus compensatory award, with the current maximum cap standing at £115,115 or 52 weeks’ pay, whichever is lower. |
| ACAS Early Conciliation | You must notify ACAS before filing a tribunal claim, and this process can extend your time limit by up to one month. |
| Liverpool Employment Tribunal | Your case will likely be heard at Liverpool Civil and Family Court, where tribunals sit regularly to hear employment disputes. |
| Legal Representation | Whilst you can represent yourself, instructing experienced employment law solicitors significantly improves your chances of success and maximises compensation. |
Introduction
Losing your job unfairly can turn your world upside down. One minute you’re earning a steady wage, the next you’re facing bills with no income and the crushing weight of injustice. In Liverpool, we see dozens of workers each month who’ve been dismissed without proper process, fair reason, or basic respect for their employment rights.
Your employer might have sacked you on the spot. Perhaps they forced you out through impossible working conditions. Maybe they fabricated a reason to get rid of you. Whatever happened, you’re probably wondering whether you can challenge this decision and what compensation you might receive.
This guide explains everything you need to know about unfair dismissal claims in Liverpool. You’ll learn whether you qualify to bring a claim, how the tribunal process works, what evidence you need, and how to maximise your chances of success. Moreover, we’ll show you the common mistakes that cost claimants thousands in lost compensation.
Right then, let’s start by understanding what actually counts as unfair dismissal under UK law.
Understanding Unfair Dismissal: What Makes a Dismissal Unlawful?
Unfair dismissal occurs when your employer terminates your employment without a fair reason or fails to follow proper procedures. It’s not simply about being sacked—it’s about how and why you were dismissed.
What Counts as Unfair Dismissal Under UK Law
The Employment Rights Act 1996 sets out five potentially fair reasons for dismissal: conduct, capability, redundancy, statutory restriction, or some other substantial reason. However, having a potentially fair reason isn’t enough. Your employer must prove they acted reasonably in treating that reason as sufficient grounds for dismissal.
Furthermore, they must follow a fair procedure. This typically means conducting a proper investigation, holding a disciplinary hearing, allowing you to respond to allegations, and offering you the right to appeal. Skip any of these steps, and the dismissal becomes unfair.
Automatically Unfair Reasons for Dismissal
Certain dismissal reasons are automatically unfair, regardless of your length of service. These include:
- Being dismissed for pregnancy, maternity leave, or related reasons
- Whistleblowing about wrongdoing at work
- Asserting a statutory right, such as requesting flexible working
- Health and safety complaints or leaving a dangerous workplace
- Trade union membership or activities
- Requesting time off for dependants
One client came to our Liverpool office after being sacked two weeks into her job for requesting maternity leave. Despite having virtually no service, we successfully claimed automatic unfair dismissal and secured substantial compensation.
If you’ve been dismissed for raising concerns about accidents at work or safety violations, you don’t need two years’ service to claim. These protections exist from day one.
Constructive Dismissal: When You’re Forced to Resign
Sometimes employers don’t actually sack you. Instead, they make your working life so intolerable that you feel compelled to resign. This is called constructive dismissal, and it’s just as unlawful as direct dismissal.
To succeed with a constructive dismissal claim, you must prove your employer fundamentally breached your employment contract. Common breaches include failing to pay wages, drastically changing your job role without agreement, or subjecting you to serious bullying or harassment.
You must resign in response to that breach without delay. Wait too long, and tribunals may decide you’ve accepted the situation. One Liverpool warehouse worker waited four months after his employer slashed his hours before resigning—the tribunal found he’d affirmed the contract variation by continuing to work.
The Legal Requirements for Bringing an Unfair Dismissal Claim
Not everyone can bring an unfair dismissal claim. Strict qualifying criteria and tight deadlines apply, so you need to act quickly and ensure you meet the requirements.
Two Years’ Continuous Service: The Basic Qualifying Period
Generally speaking, you need two years’ continuous employment with the same employer to claim ordinary unfair dismissal. This means 104 weeks of unbroken service counting back from your effective date of termination.
Breaks in service can destroy your continuity. However, certain breaks don’t count—temporary cessation of work, absence by arrangement, or strikes lasting under a week usually preserve continuity.
Strict Time Limits: The Three-Month Deadline
You must present your claim to an Employment Tribunal within three months less one day of your dismissal. Miss this deadline, and your claim is almost certainly dead in the water.
The clock starts ticking from your effective date of termination—usually your last day of work, or the end of your notice period if you worked your notice. If you received payment in lieu of notice, the date you were told you were dismissed counts.
Before filing at tribunal, you must notify ACAS for early conciliation. This pauses the time limit for up to one month whilst ACAS tries to negotiate a settlement. Nevertheless, don’t rely on this extension—get your ACAS notification in as soon as possible after dismissal.
Employee Status: Who Can Claim Unfair Dismissal
You must be an employee, not a worker or self-employed contractor. This distinction trips up many people. Just because your contract says you’re self-employed doesn’t make it true—tribunals look at the reality of your working relationship.
Employees have contracts of employment, work under direct control and supervision, and are integrated into the business. Genuine contractors control how they work, provide their own equipment, and can send substitutes.
A Liverpool Uber driver discovered this distinction the hard way. Despite his contract calling him self-employed, the Supreme Court in Uber BV v Aslam [2021] UKSC 5 ruled drivers are workers for some purposes. However, workers still can’t claim ordinary unfair dismissal—only employees can.
If you’re unsure about your employment status, contact our team for a free assessment of your situation.
The Unfair Dismissal Tribunal Process: What to Expect
Taking a case to the Employment Tribunal feels daunting. Nevertheless, understanding each stage helps you prepare properly and maximise your chances of success.
Filing Your ET1 Claim Form
After completing ACAS early conciliation, you’ll receive an early conciliation certificate. You then file your ET1 claim form online or by post to the Employment Tribunal. This form requires detailed information about your employment, dismissal circumstances, and the remedy you’re seeking.
Be specific about the facts. Vague claims lacking detail often fail. Include dates, names of people involved, and exactly what happened. Attach relevant documents as evidence—your contract, dismissal letter, and any correspondence about the dismissal.
Your Employer’s Response and Case Management
Your employer has 28 days to file an ET3 response. They’ll set out their defence—why they say the dismissal was fair and what procedure they followed. Often their response contradicts what they told you at the time. Don’t panic. Inconsistencies in their story strengthen your case.
The tribunal then holds a preliminary hearing to manage the case. They’ll set timetables for exchanging documents, witness statements, and agreeing a bundle of evidence. They might also determine preliminary issues—for example, whether you’re actually an employee or have sufficient service.
Witness Statements, Evidence Bundles, and Disclosure
Both sides must disclose relevant documents. This means handing over everything relating to the dismissal, even documents that hurt your case. Failure to disclose can lead to your claim being struck out.
You’ll prepare a witness statement setting out your evidence chronologically. This becomes your evidence-in-chief at the hearing. Your statement must be truthful, detailed, and stick to facts rather than opinions.
The parties then agree a joint bundle containing all relevant documents, numbered and indexed. This bundle becomes the only evidence the tribunal can consider, so ensuring it contains all key documents is vital.
The Final Hearing: Presenting Your Case
The final hearing typically lasts one to three days for unfair dismissal claims. You’ll attend Liverpool Civil and Family Court on Queen Elizabeth II Law Courts on Derby Square, where employment tribunals sit regularly.
The tribunal panel usually comprises an employment judge and two lay members (one with employer background, one with employee background). Your employer goes first, calling witnesses to give evidence and face cross-examination. Then you present your case and witnesses.
After closing submissions, the tribunal deliberates and delivers a judgment. Sometimes they give an oral judgment on the day. Other times they reserve judgment and send a written decision weeks later.
Calculating Unfair Dismissal Compensation and Remedies
Winning your case is only half the battle. Understanding what compensation you can claim and how tribunals calculate awards ensures you receive everything you’re entitled to.
Basic Award: Statutory Redundancy Calculation
The basic award mirrors statutory redundancy pay. It’s calculated based on your age, length of service (capped at 20 years), and weekly pay (capped at £700 as of April 2025).
The formula gives you:
- Half a week’s pay for each complete year of service under age 22
- One week’s pay for each complete year between 22 and 40
- One and a half week’s pay for each complete year aged 41 and over
A 45-year-old Liverpool care worker with 10 years’ service earning £500 per week would receive 15 weeks’ pay (10 years × 1.5), totalling £7,500 basic award.
Compensatory Award: Recovering Your Financial Losses
The compensatory award covers your actual financial losses flowing from the dismissal. This includes:
- Lost wages from dismissal until the hearing (or until you find new work)
- Future loss of earnings if you’re still unemployed or earning less
- Loss of statutory rights (usually £500)
- Loss of pension contributions and other benefits
- Expenses incurred looking for work
You must mitigate your losses by actively seeking alternative employment. Failing to look for work can drastically reduce your compensatory award. Keep records of all job applications as evidence.
The current maximum compensatory award is £115,115 or 52 weeks’ gross pay, whichever is lower. However, tribunals can award more for whistleblowing or health and safety dismissals.
Reinstatement, Re-engagement, and Financial Awards
Tribunals can order your employer to reinstate you (give you your old job back) or re-engage you (give you a different suitable role). In practice, this rarely happens. Most claimants don’t want to return, and most employers refuse to comply.
If a tribunal orders reinstatement and your employer refuses, you’ll receive an additional award of between 26 and 52 weeks’ pay. This comes on top of your basic and compensatory awards.
One Liverpool retail worker won reinstatement but her employer point-blank refused. The tribunal awarded an extra 40 weeks’ pay (£28,000) for non-compliance, dramatically increasing her total compensation.
Understanding Tax on Tribunal Awards
The first £30,000 of any unfair dismissal compensation is tax-free. Anything above this threshold is taxable income. However, the basic award and awards for injury to feelings (in discrimination cases) don’t count towards the £30,000 limit.
Your compensatory award might be reduced if you contributed to your dismissal through your own conduct. Tribunals can reduce awards by any percentage they consider just and equitable. Lying in disciplinary hearings or committing genuine misconduct typically attracts a 25-50% reduction.
Moreover, if your employer failed to follow the ACAS Code of Practice on Disciplinary and Grievance Procedures, tribunals can uplift your award by up to 25%. This reward for procedural failings can add thousands to your compensation.
Frequently Asked Questions About Unfair Dismissal Claims in Liverpool
Can I claim unfair dismissal if I’ve worked for less than two years?
Generally speaking, no. You need two years’ continuous service for ordinary unfair dismissal claims. However, you can claim from day one if dismissed for an automatically unfair reason such as whistleblowing, asserting statutory rights, pregnancy, or health and safety concerns. These protections apply regardless of service length.
How much compensation will I receive for unfair dismissal?
Compensation varies dramatically based on your circumstances. You’ll receive a basic award (similar to redundancy pay) plus a compensatory award covering your actual financial losses. Most awards range between £5,000 and £25,000, though serious cases can exceed £100,000. Factors affecting compensation include your salary, length of service, how quickly you find new work, and whether your employer followed proper procedures.
Should I accept a settlement offer from my employer?
Settlement offers need careful evaluation. Your employer might offer money to avoid tribunal, but their first offer is rarely their best. Moreover, accepting settlement means signing a COT3 agreement or settlement agreement that prevents you claiming at tribunal. Before accepting anything, get specialist legal advice to ensure the offer reflects the true value of your claim and covers all potential losses.
What evidence do I need to prove unfair dismissal?
Strong evidence is vital. Gather your employment contract, staff handbook, dismissal letter, any warnings or disciplinary documents, emails discussing your dismissal, witness contact details, and records of job applications. Screenshots of messages, attendance records, and contemporaneous notes of meetings all strengthen your case. The more documentary evidence you have, the stronger your position.
Can I represent myself at an Employment Tribunal?
You can represent yourself, and many people do. Nevertheless, employment law is complex and tribunals are formal legal proceedings. Represented claimants generally achieve better outcomes and higher compensation than those going alone. If your claim is worth pursuing, instructing experienced solicitors often pays for itself through increased awards and settlement negotiations.
What happens if I lose my unfair dismissal case?
If you lose, you typically don’t pay your employer’s costs unless you’ve acted unreasonably or pursued a claim with no reasonable prospect of success. This differs from other civil litigation where the loser usually pays. However, losing means you receive no compensation and might have wasted months pursuing the claim. Thorough case assessment before filing helps avoid this outcome.
How long does an unfair dismissal claim take?
From submission to final hearing typically takes 6-12 months, though complex cases can take longer. The process involves ACAS early conciliation (around one month), filing your claim, your employer responding, preliminary hearings, evidence exchange, and finally the hearing itself. Many cases settle before the final hearing, often at ACAS conciliation or through direct negotiation.
Can I claim unfair dismissal if I was made redundant?
Redundancy can be fair or unfair depending on the circumstances. If your employer has a genuine redundancy situation and follows a fair selection process and consultation procedure, the dismissal is likely fair. However, if they use redundancy as an excuse to get rid of you, fail to consult properly, apply unfair selection criteria, or don’t consider alternative roles, you might have an unfair dismissal claim despite the redundancy label.
Legal Disclaimer
This article is intended for informational purposes only and does not constitute legal advice. For specific advice relating to your circumstances, please contact Wolf Law directly to arrange a consultation with one of our qualified solicitors.
If you believe you’ve been unfairly dismissed, time is of the essence. Contact our Liverpool employment law specialists today for a free initial assessment of your claim. We operate on a no win, no fee basis for many employment claims, meaning you can pursue justice without financial risk. Don’t let your employer get away with unfair treatment—let us fight for the compensation you deserve.