What is Unfair Dismissal?
Unfair dismissal occurs when your employer ends your employment without a fair reason or fails to follow the correct procedure as set out in UK law. Under the Employment Rights Act 1996, employees who have worked for their employer for at least two years are generally protected against being unfairly dismissed. This means your employer must have a valid reason for letting you go and must act reasonably in the way they handle your dismissal.
There are a few common reasons that are generally considered fair for dismissal:
Misconduct: Serious or repeated breaches of workplace rules, such as theft, violence, or persistent lateness.
Redundancy: When your role is no longer needed, often due to changes in the business or economic conditions.
Capability or performance: If you are unable to do your job to the required standard, despite being given support and a chance to improve.
Legal reasons: If continuing to employ you would break the law (for example, if you lose your right to work in the UK).
Some other substantial reason: This is a catch-all for situations that don’t fit the other categories but are still considered fair by employment tribunals.
However, even if your employer claims to have a fair reason, they must also follow a fair process. This usually includes investigating the situation, discussing it with you, and giving you an opportunity to respond before making a decision. If your employer skips these steps or acts unreasonably, your dismissal may still be considered unfair.
Understanding your rights is crucial if you believe you have been unfairly dismissed. You may be able to challenge your dismissal by raising a grievance with your employer or making a claim to an employment tribunal. The law provides clear protection for employees, and knowing the rules can help you take the right steps to protect yourself.
For a broader overview of how dismissal works in the workplace, including other types of dismissal and your general rights, see our main guide on dismissal.
Legal Grounds for Fair Dismissal
When considering whether a dismissal is fair under UK law, employers must have a valid reason and follow a fair procedure. The main legal framework for fair dismissal is set out in the Employment Rights Act 1996. If either the reason or the process is lacking, the dismissal may be considered unfair, giving the employee grounds to challenge it at an employment tribunal.
There are five main reasons recognised by law as potentially fair grounds for dismissal:
Misconduct covers a wide range of unacceptable behaviours at work, from persistent lateness or breaching company policies to more serious issues like theft or violence. For minor misconduct, employers are generally expected to give warnings and a chance to improve. Only in cases of gross misconduct—such as physical assault or serious dishonesty—can an employer justify immediate dismissal without notice (known as summary dismissal).
This relates to an employee’s ability to perform their job. Capability might refer to poor performance, a lack of necessary skills, or ongoing health issues that prevent the employee from doing their work. Employers should provide support, such as training or reasonable adjustments, and give the employee an opportunity to improve before considering dismissal. Dismissing someone for lack of qualifications is only fair if those qualifications are essential for the role.
Redundancy is a fair reason if the job no longer exists, the employer needs fewer employees, or the business is closing. However, the redundancy process must be fair and transparent. Employers should consult affected employees, consider alternatives to redundancy, and use fair criteria to decide who is selected.
This applies when continuing to employ someone would break the law. For example, if an employee loses their right to work in the UK or a driver loses their driving licence required for their job, the employer may have a fair reason for dismissal.
This is a catch-all category for situations not covered above but still considered fair by employment tribunals. Examples include a fundamental breakdown in the working relationship, business reorganisations, or where keeping the employee would cause a conflict of interest.
Even if the employer has a fair reason, they must follow a fair procedure. This usually involves:
Investigation: Looking into the facts before making any decision.
Informing the Employee: Explaining the reasons for possible dismissal.
Allowing Representation: Letting the employee bring a colleague or trade union rep to meetings.
Opportunity to Respond: Giving the employee a chance to explain or defend themselves.
Warnings: In most cases (except gross misconduct or some redundancies), issuing warnings and giving time to improve.
Employers should also follow the ACAS Code of Practice on disciplinary and grievance procedures, which outlines best practice for handling dismissals.
If an employer fails to follow a fair process—even if the reason for dismissal is valid—the dismissal can still be ruled unfair by an employment tribunal. For example, dismissing someone without warning or without giving them a chance to respond can lead to a successful unfair dismissal claim. This may result in compensation or even reinstatement for the employee.
Understanding both the valid reasons for dismissal and the required procedures is essential for both employers and employees. If you believe you have been dismissed unfairly, it is important to act quickly, as strict time limits apply for making a claim.
When is a Dismissal Unfair?
A dismissal is considered unfair under UK law if your employer does not have a valid reason for ending your employment or if they do not follow a fair process. The main law covering unfair dismissal is the Employment Rights Act 1996. If you are an employee with at least two years’ continuous service (in most cases), you have the right not to be unfairly dismissed.
Your dismissal may be classed as unfair if:
There is no fair reason: Your employer must have a genuine reason for dismissing you. Acceptable reasons include conduct, capability, redundancy, breach of a statutory duty, or some other substantial reason. If you are dismissed for any other reason, it may be unfair.
Discrimination: If you are dismissed because of a protected characteristic—such as age, disability, gender reassignment, marriage or civil partnership, pregnancy and maternity, race, religion or belief, sex, or sexual orientation—this is automatically unfair and also unlawful under the Equality Act 2010.
Failure to follow procedure: Even if your employer has a fair reason, they must follow a proper disciplinary or dismissal process. This usually means giving you notice of the allegations, an opportunity to respond, and a chance to appeal the decision. If your employer skips these steps, the dismissal may be unfair.
Dismissal for asserting a statutory right: If you are dismissed for reasons like asking for minimum wage, taking maternity or paternity leave, or acting as a whistleblower, this is automatically unfair.
The Equality Act 2010 protects employees from being dismissed because of certain characteristics. These protected characteristics include:
Age
Disability
Gender reassignment
Marriage and civil partnership
Pregnancy and maternity
Race
Religion or belief
Sex
Sexual orientation
If your dismissal is connected to any of these, it is automatically unfair and you do not need to have worked for your employer for two years to make a claim.
Employers must act reasonably and follow a fair procedure when dismissing someone. This involves:
Investigating the situation thoroughly
Informing you of the problem
Allowing you to explain your side
Letting you be accompanied at disciplinary meetings
Giving you the right to appeal the decision
The Advisory, Conciliation and Arbitration Service (ACAS) Code of Practice sets out best practice for disciplinary and grievance procedures. If your employer does not follow these steps, a tribunal may find your dismissal unfair, even if the reason itself could have been fair.
It’s important to understand the difference between unfair dismissal and wrongful dismissal:
Unfair dismissal is about whether your employer had a fair reason and followed a fair process, as set out in employment law.
Wrongful dismissal is about a breach of your employment contract, usually involving not giving the correct notice period. You can claim wrongful dismissal even if you have worked for less than two years.
In summary, a dismissal is unfair if it is for an unjust reason, involves discrimination, or your employer has not followed a fair procedure. If you think you have been unfairly dismissed, you may be able to challenge the decision at an employment tribunal.
Your Rights if You Believe You Have Been Unfairly Dismissed
If you believe you have been unfairly dismissed from your job, it’s important to know your rights and what steps you can take to protect yourself.
In most cases, you must be an employee with at least two years of continuous service with your employer to make a claim for unfair dismissal under the Employment Rights Act 1996. This means that casual workers, agency staff, or those on zero-hours contracts may not always qualify, unless they can show they are legally recognised as employees. There are some exceptions—such as if you were dismissed for reasons related to pregnancy, whistleblowing, or asserting certain statutory rights—where you may be protected from day one of employment.
If you want to challenge your dismissal, you must act quickly. Claims for unfair dismissal need to be submitted to an employment tribunal within three months less one day from the date your employment ended. This deadline is strict, so it’s best to seek advice as soon as possible. Before making a claim, you will usually need to notify Acas (the Advisory, Conciliation and Arbitration Service) and go through Early Conciliation, which aims to resolve disputes without going to tribunal.
If your claim is successful, the employment tribunal can order your employer to reinstate you in your old job, re-engage you in a different role, or pay you compensation. Compensation typically covers loss of earnings and a basic award calculated based on your age, weekly pay, and length of service. The tribunal will consider whether you have made reasonable efforts to find new work and whether your employer followed a fair process.
Getting advice early is crucial to ensure you don’t miss important deadlines and to help you understand the strength of your case. An employment law specialist, union representative, or advisory service can explain your options, guide you through the process, and support you in gathering evidence. Acting promptly can also help you preserve evidence and witnesses that may be important for your claim.
It’s also worth considering whether your dismissal is linked to concerns about health and safety at work. Employees are protected from unfair dismissal if they raise genuine concerns about unsafe working conditions or refuse to work in situations they reasonably believe are dangerous. Knowing your workplace safety rights can strengthen your case, especially if you believe your dismissal was related to reporting or challenging unsafe practices.
By understanding your rights and acting quickly, you can give yourself the best chance of challenging unfair dismissal and securing a fair outcome.
How to Challenge an Unfair Dismissal
If you believe you have been unfairly dismissed from your job, there are clear steps you can take to challenge your dismissal and seek a fair outcome. Under the Employment Rights Act 1996, employees have the right not to be unfairly dismissed if they have worked for their employer for at least two years (with some exceptions, such as dismissal for an automatically unfair reason, where no minimum service is required).
Discuss the Issue with Your Employer The first step is to try to resolve the matter informally. Arrange a meeting with your employer to discuss your concerns and ask for a clear explanation of why you were dismissed. Sometimes, misunderstandings or procedural errors can be resolved at this stage.
Raise a Formal Grievance If informal discussions do not resolve the issue, you can raise a formal grievance using your employer’s grievance procedure. This involves setting out your concerns in writing and requesting a formal review. Your employer should follow the ACAS Code of Practice on disciplinary and grievance procedures.
Contact ACAS for Early Conciliation Before making a claim to an employment tribunal, you must notify the Advisory, Conciliation and Arbitration Service (ACAS). ACAS will offer early conciliation, giving you and your employer a chance to settle the dispute without going to tribunal. Early conciliation is a free and confidential service and is a mandatory step before proceeding to a tribunal.
If you cannot resolve the issue through your employer or ACAS, you can make a claim to an employment tribunal. You must submit your claim within three months less one day from the date your employment ended. The tribunal will consider whether your dismissal was fair or unfair, based on the facts and the procedures your employer followed.
What to Expect During the Process:
Filing Your Claim: You’ll need to complete an ET1 claim form, outlining your case and providing supporting details.
Response from Employer: Your employer will be asked to respond to your claim.
Preliminary Hearings: There may be initial hearings to clarify issues or decide on preliminary points.
Full Hearing: At the full hearing, both sides will present evidence and witnesses. The tribunal will then make a decision.
To support your case, it’s crucial to keep detailed records and gather evidence, such as:
Your employment contract and any staff handbooks or policies
The letter of dismissal or any written explanation from your employer
Notes from meetings or conversations about your dismissal
Copies of emails, letters, or other correspondence with your employer
Records of your performance, appraisals, or any disciplinary actions
Having clear documentation can strengthen your case and help the tribunal understand what happened.
If the tribunal finds that you were unfairly dismissed, it can order several remedies:
Reinstatement: You return to your old job, as if the dismissal had not happened.
Re-engagement: You are given a new job with the same employer or an associated employer.
Compensation: If reinstatement or re-engagement is not practical, the tribunal may award compensation. This is usually made up of a basic award (similar to statutory redundancy pay) and a compensatory award (to cover actual losses, such as lost earnings).
The tribunal will consider factors such as your conduct, the employer’s behaviour, and whether you have tried to find new work when deciding on compensation.
Challenging an unfair dismissal can feel daunting, but understanding your rights and following the correct procedures can help you achieve a fair result. If you are unsure about your situation or need support, you may wish to seek advice from a legal professional or employment adviser.
Related Employment Topics to Know About
Understanding unfair dismissal is just one part of protecting your rights at work. Several other employment topics are closely linked to dismissal and can affect your situation. Here’s a detailed look at the most important areas to be aware of:
1. Notice Periods
When your employment ends, either through dismissal or resignation, you are usually entitled to a notice period. The Employment Rights Act 1996 sets out the minimum notice periods: one week’s notice after one month of continuous employment, two weeks after two years, and an extra week for each further year up to a maximum of twelve weeks. Employers can offer longer notice periods in your contract, but not less than the legal minimum. If you are dismissed without the proper notice, you may be entitled to pay in lieu of notice.
2. Redundancy
Redundancy occurs when your job is no longer needed, often due to business closure, restructuring, or new technology. It’s different from unfair dismissal, but the two can overlap. If you are selected for redundancy unfairly or without a fair process, you may have grounds for an unfair dismissal claim. UK law requires employers to follow a fair redundancy process, including consultation and consideration of alternative roles. Employees with at least two years’ service are entitled to statutory redundancy pay.
3. Disciplinary and Grievance Procedures
Employers must follow fair disciplinary procedures before dismissing someone for misconduct or performance issues. The Acas Code of Practice on Disciplinary and Grievance Procedures sets out best practice, including investigation, the right to a hearing, and the chance to appeal. If your employer does not follow these steps, your dismissal could be deemed unfair.
4. Parental Leave and Family Rights
If you are dismissed because you are pregnant, on maternity or paternity leave, or exercising other family-related rights, this is automatically considered unfair dismissal under UK law. The Equality Act 2010 and the Employment Rights Act 1996 protect employees from being treated unfairly because of pregnancy, childbirth, or parental leave. If you suspect your dismissal is linked to these rights, you may have additional legal claims.
5. Constructive Dismissal
Constructive dismissal happens when you resign because your employer’s behaviour has made it impossible for you to continue working. Examples include serious breaches of contract, such as not paying you, changing your job without agreement, or allowing bullying. While you technically resign, the law may treat your case as a dismissal, and you could claim unfair dismissal if you have at least two years’ service.
6. Wrongful Dismissal
Wrongful dismissal is different from unfair dismissal. It’s when your employer breaches your contract, usually by not giving you the correct notice. You do not need a minimum length of service to claim wrongful dismissal, and your claim focuses on contract law rather than employment rights. You can claim for lost earnings and benefits during the notice period.
7. Discrimination at Work
If you are dismissed because of a protected characteristic—such as age, disability, race, religion, sex, or sexual orientation—this is unlawful under the Equality Act 2010. Discriminatory dismissal can lead to claims for both unfair dismissal and discrimination, which can result in compensation and other remedies.
8. Settlement Agreements
Sometimes employers offer a settlement agreement when ending your employment. This is a legally binding contract where you agree not to pursue certain claims (such as unfair dismissal) in return for compensation. It’s important to get independent legal advice before signing, as you may be giving up important rights.
Why These Topics Matter
Knowing about these related areas helps you understand your full range of rights and options if you face dismissal. Each topic is governed by specific laws and procedures, and mistakes by employers can strengthen your case if you decide to challenge your dismissal. If you’re unsure about your situation or believe your rights have been breached, seeking advice early can make a significant difference.
Notice Periods for Dismissal
When an employer decides to dismiss an employee, they are usually required by law to provide a notice period. A notice period is the amount of time between when you are told you will be dismissed and your actual last working day. This period gives you time to prepare for the end of your employment, look for another job, and make arrangements for your future.
Under the Employment Rights Act 1996, most employees are entitled to a minimum statutory notice period, unless they have been dismissed for gross misconduct. The minimum notice periods are:
At least one week’s notice if you have been employed for between one month and two years.
One additional week’s notice for each year of service after two years, up to a maximum of 12 weeks.
For example, if you have worked for your employer for five years, you are entitled to five weeks’ notice. Your employment contract may specify a longer notice period, and if so, your employer must honour the longer period.
Notice periods are designed to protect employees from sudden loss of income and to allow time for transition. During your notice period, you are entitled to your normal pay and benefits, even if your employer asks you not to work (known as “garden leave”). In some cases, your employer may offer “pay in lieu of notice” (PILON), where you receive payment instead of working your notice period.
If your employer dismisses you without giving the correct notice or pay in lieu, this is known as wrongful dismissal. You may be able to claim compensation for the notice pay you should have received. It’s important to check your employment contract and seek advice if you believe your notice period has not been honoured.
There are some situations where notice periods do not apply. If you are dismissed for gross misconduct, your employer can terminate your employment immediately, without notice or pay in lieu. Examples of gross misconduct include theft, violence, or serious breaches of company policy.
Understanding your rights around notice periods for dismissal can help you ensure you are treated fairly and receive what you are entitled to if your employment comes to an end. If you have concerns about how your notice period has been handled, consider seeking further advice or support.
Redundancy
Redundancy is a specific situation where an employer needs to reduce their workforce, often due to business closure, changes in how work is done, or a drop in demand for certain roles. Unlike unfair dismissal, redundancy is not about the employee’s conduct or performance, but rather about the job itself no longer being needed.
Unfair dismissal occurs when an employee is dismissed without a fair reason or proper process. In contrast, redundancy is considered a fair reason for dismissal under the Employment Rights Act 1996—provided it is genuine and handled correctly. The key difference is that redundancy is about the role being removed, not the person.
If you are facing redundancy, you have several important rights:
Consultation: Your employer must consult with you before making you redundant. If 20 or more employees are affected, there are additional collective consultation rules.
Fair Selection Process: Employers must use a fair and objective method to decide who is made redundant. This usually involves criteria such as skills, experience, and attendance record.
Notice Period: You are entitled to a statutory notice period, which depends on how long you have worked for your employer.
Redundancy Pay: Employees with at least two years’ continuous service are usually entitled to statutory redundancy pay. The amount depends on your age, weekly pay (subject to a cap), and years of service.
Alternative Employment: Your employer should consider offering you suitable alternative employment within the organisation if possible.
Right to Appeal: If you believe the redundancy process was unfair or you were unfairly selected, you can appeal and may have grounds to bring a claim for unfair dismissal.
Redundancy is only a fair reason for dismissal if your employer follows the correct procedure. This includes genuine business reasons, fair selection, and proper consultation. If these steps are not followed, the redundancy could be challenged as an unfair dismissal.
For example, if an employer claims redundancy but immediately hires someone else for the same role, or uses redundancy as a cover for dismissing someone for another reason, this may be grounds to contest the dismissal.
Understanding your rights during redundancy can help you ensure the process is fair and that you receive any payments or notice you are entitled to. If you are unsure whether your redundancy is genuine or handled properly, you may want to seek legal advice or speak to your trade union representative.
Parental Leave and Employment Rights
When you take maternity, paternity, or parental leave, your employment rights remain protected under UK law. This means that being away from work to care for your child should not put your job at risk or reduce your rights as an employee.
Whether you are on maternity, paternity, or shared parental leave, you continue to build up your employment rights as if you were still at work. This includes your right to accrue holiday, receive pay rises, and benefit from improvements in working conditions. When your leave ends, you usually have the right to return to the same job, or if that’s not reasonably practicable, a suitable alternative with similar terms and conditions.
It is unlawful for your employer to dismiss you or select you for redundancy purely because you have taken or plan to take parental leave. The Employment Rights Act 1996 and the Maternity and Parental Leave etc. Regulations 1999 provide clear protections. If you are dismissed for a reason connected to your maternity, paternity, or parental leave, this may be considered an automatically unfair dismissal. For example, if you are made redundant during maternity leave, your employer is required to offer you any suitable alternative vacancies, if available, before anyone else.
If you believe you have been treated unfairly or dismissed because of taking parental leave, you can challenge the decision at an employment tribunal. It’s important to act quickly, as strict time limits apply—usually three months from the date your employment ended.
Understanding your rights in detail can help you protect yourself at work. To learn more about your entitlements and the legal protections in place, see our comprehensive guide on maternity, paternity, and parental leave. This resource covers eligibility, the process for requesting leave, and what to do if you face problems at work because of your parental responsibilities.
If you have further questions or are unsure about your situation, seeking advice early can make a significant difference. Remember, the law is there to support you during this important time in your family life.
