Key Takeaways
| Right to Claim: You have two years from termination to bring an unfair dismissal claim under the Employment Rights Act 1996. This period is strict and non-negotiable. |
| Redundancy Payments: Statutory redundancy compensation depends on your age, service length, and weekly pay. A tribunal can order additional compensation for unfair procedures. |
| Burden of Proof: Your employer must prove they acted fairly. If they fail, the tribunal awards you compensation or reinstatement under Employment Tribunal Rules. |
| Procedural Fairness: The ACAS Code of Practice requires consultation, clear communication, and genuine consideration of alternatives. Breaching this costs extra compensation. |
| Unfair Reasons: Dismissal based on pregnancy, health, whistleblowing, or trade union membership is automatically unfair under Employment Rights Act 1996. |
What is Unlawful Redundancy?
Redundancy happens when your employer no longer needs your role. That’s normal business. But redundancy only becomes unlawful when your employer fails to follow proper procedures or dismisses you for an automatically unfair reason.
A recent case involved a tearoom worker dismissed after 12 years with minimal notice and no consultation. The tribunal found the dismissal both procedurally unfair and substantively unreasonable. The worker received £12,000 compensation. This isn’t unusual. When employers cut corners, it costs them.
Why Proper Procedure Matters
Courts take procedure seriously because it affects real people. The ACAS Code of Practice sets the standard. Your employer must:
- Provide written details of the redundancy situation
- Consult you individually before deciding who gets dismissed
- Offer you the chance to suggest alternatives to redundancy
- Consider redeployment to other available roles
- Explain the appeal process
Skip these steps and you’ve got a claim. Employment Rights Act 1996 makes clear that procedural fairness isn’t optional.
Automatically Unfair Dismissal
Some dismissals are unfair the moment they happen, regardless of business need. These include dismissal because of pregnancy, disability, whistleblowing, or union membership.
A classic example: an employee raises health and safety concerns about office equipment. Management dismisses her for “restructuring” a week later. The tribunal looks past the official reason and finds automatic unfairness under the Public Interest Disclosure Act 1998.
Whistleblowing and Health and Safety
If you report genuine health risks, discrimination, or illegality, you’re protected. Your employer cannot dismiss you for raising these issues. The protection is absolute. This applies from your first day of employment.
You don’t need to get permission before reporting. You don’t need to prove your complaint was correct. You only need to show you had a reasonable belief that wrongdoing had occurred.
Calculating Your Compensation
Employment Tribunals award compensation using two methods.
Statutory Redundancy Pay
This is calculated by age and years of service. You get:
- £399 per week for each complete year of service aged 22-40
- £532 per week for service aged 41+
- £199 per week for service aged under 22
Maximum is 20 weeks. This applies regardless of unfairness. You receive this amount as a baseline.
Unfair Dismissal Compensation
If dismissal was unfair, you receive additional compensation. The tribunal considers whether reinstatement is possible and awards a compensatory amount reflecting lost earnings, benefits, and the impact on your employment prospects.
The cap is 52 weeks’ pay or £102,500, whichever is lower. Real cases regularly exceed £15,000 when procedure is seriously breached. The tearoom worker’s £12,000 award reflects procedural failures and poor notice handling.
Bringing Your Claim
Time is critical. You have exactly two years from your final day to submit a claim form to an Employment Tribunal. This deadline is fixed.
You don’t need a solicitor. Many people represent themselves. But tribunals respond to clear evidence. Gather your employment contract, emails about redundancy, details of consultation meetings (or lack thereof), and any correspondence about alternatives you suggested.
Contact Wolf Law for a free consultation. We handle employment claims on a no-win, no-fee basis. We’ll review your case, explain your realistic chances, and manage the process from start to finish.
Frequently Asked Questions
How long do employment tribunal claims take? Initial hearing date typically comes 3-6 months after filing. Full hearings usually conclude within 12 months. Some cases settle earlier at pre-hearing settlement discussions.
What if my employer says I was dismissed for poor performance? The tribunal examines the evidence. If redundancy was the real reason, poor performance claims fail. Evidence of previous positive appraisals, absence of disciplinary warnings, or similar-performing employees retained all support your claim.
Can I claim if I resigned under pressure? Possibly. If you were forced to choose between resignation and dismissal, a tribunal may treat your resignation as a constructive dismissal. This requires proof that working conditions became intolerable.
What happens if my employer can’t pay the compensation award? You can apply for a Protective Award or ask the tribunal to enforce the judgment through the courts. The Employment Rights Act 1996 gives you tools to recover money owed.
Do I need evidence of financial loss? Not always. Unfair dismissal compensation includes injury to feelings even if you found a new job immediately. The tribunal assesses this based on the severity of the breach.
Can my employer rehire me as a contractor to avoid employment law? No. Employment status depends on the actual relationship, not what you’re called. If you work regular hours with set duties under supervision, you’re an employee regardless of labels.
What if I settle with my employer before a hearing? Settlement is common. Both sides often prefer certainty. A compromise agreement legally ends your claim. Ensure any settlement covers your full loss and includes legal advice from Wolf Law.
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.
