| Key Takeaway | What You Need to Know |
|---|---|
| Unfair dismissal is governed by the Employment Rights Act 1996. | To bring a claim, you generally need two years of continuous employment with your employer. |
| Your employer must have a fair reason to dismiss you. | The five potentially fair reasons are: capability, conduct, redundancy, statutory restriction, and some other substantial reason (SOSR). |
| Even with a fair reason, your employer must follow a fair procedure. | Failure to follow the ACAS Code of Practice on Disciplinary and Grievance Procedures can increase any tribunal award by up to 25%. |
| You have three months less one day from your dismissal date to submit a claim to an Employment Tribunal. | Missing this deadline is fatal to your claim in almost all cases. |
| Before making a tribunal claim, you must notify ACAS under the Early Conciliation scheme. | This is a legal requirement under the Enterprise and Regulatory Reform Act 2013. |
| Certain dismissals are automatically unfair regardless of your length of service. | These include dismissal for whistleblowing, pregnancy, or asserting a statutory right. |
| A successful unfair dismissal claim can result in a substantial compensation award. | Awards consist of a basic award and a compensatory award, both subject to statutory caps. |
Losing your job is never easy. But if your employer dismissed you without a fair reason or without following the right process, the law gives you the right to challenge it. Unfair dismissal is one of the most common employment law claims brought before Employment Tribunals in England and Wales. Under the Employment Rights Act 1996, employees have clear protections that employers must respect. If those protections were ignored in your case, you may have a strong claim.
This guide covers everything you need to know. We explain what unfair dismissal means, which reasons are potentially fair, how the tribunal process works, and what compensation you could receive. If you think you have been wrongly dismissed, read on.
What Counts as Unfair Dismissal?
Not every dismissal is automatically unfair. Under the Employment Rights Act 1996, your employer must show that they had a potentially fair reason to dismiss you. They must also show that they acted reasonably in all the circumstances. Both tests must be met. If either fails, your dismissal is likely to be unfair.
The Five Potentially Fair Reasons for Dismissal
The law sets out five reasons that can justify a dismissal. First, capability, which covers performance or ill health. Second, conduct, such as serious misconduct or repeated minor misconduct. Third, redundancy, where your role genuinely no longer exists. Fourth, a statutory restriction, for example where continued employment would break the law. Fifth, some other substantial reason, which covers a wide range of legitimate business reasons.
Even if one of these reasons applies, your employer must still follow a fair process. In a case we handled, an employee was dismissed for poor performance without any prior warnings or a performance improvement plan. As a result, the tribunal found the dismissal procedurally unfair, and she received a substantial compensation award.
- Your employer must carry out a reasonable investigation before dismissing you.
- You have the right to be accompanied at any disciplinary hearing under the Employment Relations Act 1999.
- Your employer must consider alternatives to dismissal, such as demotion or a final written warning.
Automatically Unfair Dismissal: No Service Requirement Needed
Certain dismissals are automatically unfair. Crucially, you do not need two years of service to bring these types of claim. If your employer dismissed you for one of these protected reasons, you can go straight to an Employment Tribunal regardless of how long you had worked there.
What Are the Automatically Unfair Reasons?
Automatically unfair dismissal covers a wide range of situations. These include dismissal because of pregnancy or maternity leave, whistleblowing under the Public Interest Disclosure Act 1998, asserting a statutory right such as national minimum wage, trade union membership or activities, and jury service. Additionally, under the Employment Rights Act 1996, health and safety reasons also fall into this category.
In a recent matter we dealt with, an employee was dismissed shortly after raising concerns about workplace safety. Since her dismissal clearly connected to her protected disclosure, the tribunal upheld her claim without any need to establish two years of service. She recovered a substantial award to reflect her financial losses and the impact on her career.
The GOV.UK guidance on unfair dismissal provides a helpful overview of these protections. However, individual circumstances vary greatly, and specialist legal advice makes a real difference to the outcome of your claim.
How to Bring an Unfair Dismissal Claim
The process for making an unfair dismissal claim is straightforward, provided you act quickly. The key deadlines are strict, and missing them will cost you your claim. Therefore, taking action promptly is absolutely essential.
Early Conciliation and the Tribunal Process
Before you can submit a claim to an Employment Tribunal, you must first notify ACAS and go through Early Conciliation. This is a legal requirement. ACAS will attempt to help you and your employer reach a settlement without going to tribunal. If conciliation fails, ACAS issues a certificate and your time limit to submit your claim is extended accordingly.
Once your claim is submitted to the tribunal, your employer has 28 days to respond. After that, the tribunal will hold a preliminary hearing if needed, followed by a full merits hearing where both sides present their case. The ACAS guide to tribunal claims explains the full process in plain terms. At Wolf Law, our employment law team guides you through every step, from early conciliation right through to the hearing if necessary.
What Compensation Can You Receive?
If your unfair dismissal claim succeeds, the tribunal can award two types of compensation. Understanding both helps you know what to expect from the process and why keeping financial records from day one matters so much.
Basic Award and Compensatory Award
The basic award is calculated in the same way as a statutory redundancy payment. It depends on your age, length of service, and weekly pay, subject to a statutory cap on weekly pay. The compensatory award covers your actual financial losses, such as lost earnings, loss of pension contributions, and the loss of statutory rights. Together, these can amount to a substantial sum, particularly where the dismissal has had a long-term impact on your career.
Moreover, if your employer failed to follow the ACAS Code of Practice on Disciplinary and Grievance Procedures, the tribunal can increase your compensatory award by up to 25%. Conversely, if you contributed to your own dismissal, the award may be reduced. The Employment Rights Act 1996 on legislation.gov.uk sets out the full framework for compensation. Our team at Wolf Law can give you a clear, honest estimate of what your claim may be worth.
Frequently Asked Questions
How long do I have to make an unfair dismissal claim?
You have three months less one day from your effective date of termination to submit a claim to an Employment Tribunal. Before doing so, you must notify ACAS under the Early Conciliation scheme, which pauses the clock. Do not delay, as this deadline is strictly enforced and very rarely extended.
Do I need two years of service to claim unfair dismissal?
For most unfair dismissal claims, yes. You need two years of continuous employment. However, automatically unfair dismissals, such as those relating to whistleblowing, pregnancy, or asserting a statutory right, have no minimum service requirement at all.
What is constructive dismissal?
Constructive dismissal occurs when your employer’s conduct is so serious that you feel forced to resign. Common examples include a significant pay cut without agreement, bullying, or a fundamental change to your job role. Although you resigned, the law treats this as a dismissal if your employer fundamentally breached your contract.
Can I be dismissed while on sick leave?
Yes, but your employer must follow a fair process and consider all the circumstances carefully. Dismissing someone simply because they are off sick, without proper investigation or consideration of adjustments, is likely to be unfair. If the illness is a disability under the Equality Act 2010, additional protections apply.
What happens at an Employment Tribunal hearing?
At the hearing, both you and your employer present evidence and witness statements to an Employment Judge, sometimes sitting with lay members. The judge then decides whether the dismissal was fair. Most hearings last one to two days for straightforward cases, though complex matters can take longer.
Can my employer dismiss me during a disciplinary process?
Yes, but they must complete the process fairly first. This means carrying out a reasonable investigation, giving you notice of the allegations, holding a disciplinary hearing, allowing you to be accompanied, and considering your response before making a decision. Skipping any of these steps makes the dismissal procedurally unfair.
Is there a cap on unfair dismissal compensation?
Yes. The compensatory award is subject to a statutory cap, which changes each April. For most employees, the cap is either 52 weeks’ gross pay or the current statutory maximum, whichever is lower. There is no cap for automatically unfair dismissal on certain grounds, such as whistleblowing.
If you have been dismissed and you believe it was unfair, do not wait. Time limits are strict and the sooner you get advice, the stronger your position. Our employment law solicitors at Wolf Law are ready to review your case and advise you on your options, with no obligation and no upfront costs.
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.
