What is Dismissal?
Dismissal is when an employer ends an employee’s contract of employment. In the UK, this can happen for a variety of reasons, such as poor performance, misconduct, redundancy, or because a fixed-term contract has come to an end. Dismissal can be initiated by the employer, but it also includes situations where an employee is forced to leave due to the employer’s conduct, known as constructive dismissal.
Employers must follow fair procedures and have a valid reason for dismissing an employee, as set out in the Employment Rights Act 1996. Common lawful reasons for dismissal include capability (the employee’s ability to do the job), conduct, redundancy, breach of a statutory restriction, or some other substantial reason. If the correct process is not followed, or if the reason for dismissal is unfair, the employee may have the right to challenge the decision at an employment tribunal.
Employees are protected by various legal rights during the dismissal process, including the right to receive notice, the right not to be unfairly dismissed (after a qualifying period of service), and protection against discrimination. Understanding how dismissal fits within the wider context of employment rights can help both employers and employees navigate these situations more confidently. For more information about your rights and obligations at work, see our Employment law overview.
Types of Dismissal
When an employment relationship ends, the reason and manner of dismissal are crucial. In the UK, there are several types of dismissal, each with its own legal rules and consequences. Understanding these differences can help you recognise your rights and what steps you might take if you believe your dismissal was not handled correctly.
Unfair Dismissal Unfair dismissal occurs when an employer ends an employee’s contract without a fair reason, or without following the correct procedure as set out in the Employment Rights Act 1996. Examples include being dismissed for reasons such as pregnancy, whistleblowing, or requesting flexible working. Not every dismissal is automatically unfair—your eligibility and the circumstances matter. For a detailed explanation of your rights and the process for making a claim, see our dedicated page on Unfair dismissal.
Wrongful Dismissal Wrongful dismissal is about breach of contract. This happens when an employer fails to provide the proper notice period, or breaches the terms of the employment contract when dismissing an employee. For example, if you are dismissed without the notice your contract requires (unless you have committed gross misconduct), this could be classed as wrongful dismissal. Unlike unfair dismissal, wrongful dismissal claims focus on whether contractual obligations were met, rather than the fairness of the reason for dismissal.
Constructive Dismissal Constructive dismissal occurs when an employee resigns because their employer’s behaviour has made it impossible to continue working. This could involve serious breaches of contract, such as not paying wages, drastically changing working conditions without agreement, or subjecting the employee to bullying or harassment. In these situations, the law may view the resignation as a dismissal by the employer.
Each type of dismissal has different legal implications and routes for seeking redress. Knowing which category your situation falls into can help you decide on the best course of action, whether that’s negotiating with your employer, seeking advice, or making a claim through an employment tribunal. For further guidance on your rights and next steps, explore our section on Unfair dismissal.
Unfair Dismissal
Unfair dismissal occurs when an employer terminates an employee’s contract without a fair reason, or fails to follow the correct procedure as set out in the law. Under the Employment Rights Act 1996, employees are protected against being dismissed in a way that is unjust or unreasonable.
To qualify for protection against unfair dismissal, most employees must have worked continuously for their employer for at least two years. However, there are some exceptions where this qualifying period does not apply, such as dismissals related to discrimination, whistleblowing, or asserting certain statutory rights.
Common grounds for unfair dismissal include being let go because of pregnancy or maternity leave, joining a trade union, requesting flexible working, or raising health and safety concerns. If an employer cannot show a fair reason for dismissal—such as conduct, capability, redundancy, or a statutory restriction—or if they do not follow a fair disciplinary or dismissal process, the dismissal may be considered unfair.
Typical examples of unfair dismissal might include being dismissed without warning or explanation, being sacked for making a complaint about workplace conditions, or being selected for redundancy based on discriminatory reasons.
If you think you may have been unfairly dismissed, it’s important to understand your rights and the steps you can take. For a detailed explanation of what counts as unfair dismissal, your legal protections, and how to challenge an unfair dismissal, visit our dedicated page on Unfair dismissal.
Wrongful Dismissal
Wrongful dismissal occurs when an employer breaches the terms of an employee’s contract during the process of ending their employment. Most commonly, this means dismissing an employee without giving the proper notice period required by their employment contract or by law. It can also include cases where an employer fails to follow other contractual procedures, such as disciplinary processes set out in the contract.
It’s important to understand that wrongful dismissal is different from unfair dismissal. Wrongful dismissal is based purely on contract law, focusing on whether the terms of the employment contract have been broken. In contrast, unfair dismissal is a statutory right under the Employment Rights Act 1996 and looks at whether the employer had a fair reason and followed a fair procedure when dismissing the employee.
A typical example of wrongful dismissal is when an employee is let go without any notice, or with less notice than their contract or the statutory minimum requires. Another example could be an employer dismissing someone in a way that breaches other specific terms of their contract.
If you believe you have been wrongfully dismissed, you may be entitled to claim damages for the notice period or benefits you should have received. However, compensation is usually limited to financial losses directly resulting from the breach of contract, rather than for the manner of the dismissal or emotional distress.
Constructive Dismissal
Constructive dismissal happens when an employee resigns because their employer has fundamentally breached the terms of their employment contract. In these cases, the resignation is treated as if the employee has been dismissed by the employer. This type of dismissal is recognised under the Employment Rights Act 1996.
Examples of employer behaviour that may lead to constructive dismissal include:
Making significant changes to job duties or working hours without agreement
Failing to pay wages or other contractual benefits
Allowing workplace bullying, harassment, or unsafe working conditions to continue
Unjustified demotion or disciplinary action
Breaching trust and confidence, such as through unfair treatment or discrimination
To claim constructive dismissal, the employee must usually have at least two years’ continuous service and must show that the employer’s actions amounted to a serious breach of contract. The employee must also resign in response to the breach, not for unrelated reasons, and should not delay too long after the breach occurs.
If a claim is successful, the employee may be entitled to remedies such as compensation for unfair dismissal. However, each case is assessed on its own facts, and it is important to seek advice before resigning.
Notice Periods for Dismissal
Notice periods play a crucial role in the dismissal process, setting out how much warning an employer must give an employee before their employment ends. These periods are designed to provide both parties with a degree of certainty and time to prepare for the end of the employment relationship.
In the UK, the law sets out statutory minimum notice periods under the Employment Rights Act 1996. If an employee has worked for an employer for at least one month, they are entitled to at least one week’s notice. This increases by one additional week for each complete year of service, up to a maximum of 12 weeks. However, employment contracts can specify longer notice periods, and both employers and employees are bound by the terms agreed in the contract if these are more generous than the statutory minimum.
During the notice period, both employers and employees have certain rights and obligations. Employees are generally entitled to receive their usual pay and benefits, and are expected to continue fulfilling their duties. Employers must follow fair procedures and ensure that notice is given in accordance with the law and the contract.
To understand the rules in more detail, including how notice periods are calculated, what happens if notice is not given, and exceptions to the general rules, see our dedicated guide on Notice periods for dismissal.
Redundancy and Dismissal
When an employer needs to reduce their workforce, this is known as redundancy. Redundancy is a specific type of dismissal that occurs when a job or role is no longer required, often due to business changes such as restructuring, closure, or a drop in demand. Unlike other forms of dismissal, redundancy is not usually related to the employee’s conduct or performance.
UK law sets out clear rules for redundancy to ensure fair treatment. Employers must follow a fair process, including proper selection criteria and consultation with affected staff. In many cases, this process is governed by the Employment Rights Act 1996, which outlines the legal steps employers must take.
Employees facing redundancy have important rights. These include the right to a formal consultation, time off to look for new work, and, if eligible, statutory redundancy pay. The amount of redundancy pay depends on factors such as age, length of service, and weekly pay.
For a comprehensive explanation of the redundancy process, legal requirements, and your rights as an employee, see our dedicated page on Redundancy.
Dismissal Procedures Employers Must Follow
When considering dismissal, employers in the UK are required by law to follow fair and reasonable procedures. This is not only a matter of good practice—it is a legal obligation under the Employment Rights Act 1996 and reinforced by the ACAS Code of Practice on Disciplinary and Grievance Procedures. Failing to follow these procedures can make a dismissal unfair, even if there was a valid reason for ending employment.
A fair dismissal process usually involves a series of steps designed to ensure both sides are treated justly. One of the key stages is holding disciplinary meetings, where the employee has a chance to hear the allegations against them, respond, and present their side of the story. These meetings must be conducted impartially, and employees have the right to be accompanied by a colleague or trade union representative.
Following proper dismissal procedures protects both employers and employees. For employers, it reduces the risk of claims for unfair dismissal and demonstrates that they have acted lawfully. For employees, it ensures their rights are respected and they have an opportunity to defend themselves or improve their conduct before any final decision is made. By adhering to these rules, both parties are more likely to reach a fair outcome, and the risk of costly legal disputes is minimised.
Employee Protections During Dismissal
When facing dismissal, employees in the UK are entitled to a range of legal protections designed to ensure fair treatment and prevent abuse. The core protections are set out in the Employment Rights Act 1996, which outlines your right not to be unfairly dismissed if you have worked for your employer for at least two years. This means your employer must have a valid reason for dismissal—such as conduct, capability, redundancy, or a statutory restriction—and must follow a fair procedure.
You are also protected against discrimination under the Equality Act 2010. This means you cannot be dismissed because of certain protected characteristics, such as age, disability, race, religion, sex, or sexual orientation. Dismissal for discriminatory reasons is automatically considered unfair, regardless of how long you have worked for your employer.
It is important to review your employment contract, as it may provide additional rights or set out specific procedures your employer must follow before dismissing you. Understanding the terms of your contract can help you identify if your employer has breached any agreed terms, which could strengthen your position if you wish to challenge your dismissal.
If your dismissal is related to reporting wrongdoing at work, you may have extra safeguards under whistleblowing employee protections. These laws protect employees from being dismissed or treated unfairly for raising concerns about illegal or unethical practices.
For a broader overview of your entitlements at work, see our guide on employee rights. Understanding these protections can help you take informed steps if you believe your dismissal was not handled lawfully.
Remedies and Claims After Dismissal
If you believe your dismissal was unfair or wrongful, you have several options to seek a remedy. UK employment law, particularly the Employment Rights Act 1996, provides protection for employees against unfair dismissal. Wrongful dismissal, on the other hand, usually relates to breaches of contract, such as not being given proper notice.
If informal discussions with your employer do not resolve the issue, you may decide to bring a claim to an employment tribunal. Before doing so, you are generally required to follow the employment dispute procedures, which often include early conciliation through Acas (the Advisory, Conciliation and Arbitration Service). This step is designed to help both parties reach an agreement without going to tribunal.
To make a claim, you must usually apply within three months less one day from the date your employment ended. The tribunal will consider whether your dismissal was fair, taking into account the reason for dismissal and whether your employer followed a fair process.
If your claim is successful, the tribunal may order different remedies. The main outcomes include:
Reinstatement: You may be given your old job back as if you had never been dismissed.
Re-engagement: You could be offered a different job with the same employer.
Compensation: Most commonly, the tribunal may award compensation for financial losses caused by the dismissal. This can include a basic award (similar to redundancy pay) and a compensatory award for lost earnings and benefits.
The specific remedy depends on your circumstances and the nature of the dismissal. In some cases, you may also be entitled to notice pay and holiday pay owed.
For more detailed guidance on making a claim or understanding the process, see our section on employment dispute procedures.
Related Topics
If you’re dealing with dismissal or want to understand your rights and options, exploring related employment topics can help you make informed decisions. Below are some key areas you may wish to read about:
Workplace issues: Find out about common problems at work, such as grievances, bullying, or discrimination, and how these can sometimes lead to disputes or dismissal.
Types of employment: Learn about the different kinds of employment contracts and working arrangements, including how your employment status can affect your rights if you are dismissed.
Flexible work: Discover your legal right to request flexible working and how changes to your working pattern might help avoid dismissal or resolve workplace issues.
Workplace drug testing: Understand the rules around drug and alcohol testing at work, and how these policies can impact dismissal decisions.
Right to work: Check the legal requirements for working in the UK, including how issues with your right to work status can affect your employment.
Resignation: If you’re thinking about leaving your job voluntarily, find out about the process for resignation and how it differs from being dismissed.
Employment references: Learn what you’re entitled to when requesting a reference from a former employer, especially after dismissal, and how references can affect your future job prospects.
Exploring these topics can help you better understand your rights and responsibilities at work, and what steps you can take if you face dismissal or related challenges.
