Unfair dismissal UK

Who can claim unfair dismissal

To bring an ordinary unfair dismissal claim, the employee must:

• Have 2 years continuous service at the effective date of termination (1 year for dismissals before 6 April 2012).
• Be an employee not a worker or self-employed contractor.
• Bring the claim within 3 months less one day of the effective date of termination (ACAS Early Conciliation extends this).

Automatic unfair dismissal categories - discussed below - have no qualifying period. Categories include dismissal for pregnancy, whistleblowing, asserting a statutory right, TUPE reasons, health and safety concerns and trade union membership.

The five potentially fair reasons

The employer must show that the reason for dismissal was one of the five potentially fair reasons under section 98(2) ERA:

1. Capability or qualifications. Poor performance, ill health, loss of a required qualification (e.g. driving licence for a driving role).
2. Conduct. Misconduct or gross misconduct. Rudeness, dishonesty, refusal to follow reasonable instructions, breach of policy.
3. Redundancy. Genuine business closure, workplace closure or reduction in the need for particular work.
4. Illegality. Continued employment would breach a legal duty - e.g. loss of right to work in the UK.
5. Some other substantial reason (SOSR). A catch-all for legitimate business reasons not covered by the other four - restructuring on non-redundancy grounds, personality clashes causing serious operational problems, refusal to agree to a reasonable contract variation.

The employer bears the burden of proving the reason. Without a potentially fair reason, the dismissal is unfair.

The reasonableness test

Even with a potentially fair reason, the dismissal must be reasonable in all the circumstances. Section 98(4) ERA. The tribunal applies the "range of reasonable responses" test - would a reasonable employer, on the facts known at the time, have dismissed?

Reasonableness includes:

• The size and administrative resources of the employer.
• Equity and the substantial merits of the case.
• Whether the employer followed a fair procedure.
• Whether dismissal was within the range of responses a reasonable employer could have chosen.

Procedural fairness

Fair procedure is essential. The ACAS Code of Practice on Disciplinary and Grievance Procedures sets the standard. For a conduct or capability dismissal, the employer should:

1. Investigate the facts before deciding to hold a disciplinary hearing.
2. Write to the employee with the allegations and evidence.
3. Give at least a reasonable period to prepare.
4. Allow the employee to be accompanied by a colleague or trade union representative.
5. Hold a fair hearing where the employee can respond to the allegations.
6. Adjourn to consider the decision.
7. Communicate the decision in writing with reasons and a right of appeal.
8. Hold a fair appeal if requested.

Failure to follow the ACAS Code can uplift compensation by up to 25 per cent. Serious procedural failures often turn a "borderline" fair dismissal into an unfair one.

Automatic unfair dismissal

Dismissal is automatically unfair if the reason (or principal reason) is one of the protected categories. No qualifying service is needed. Categories include:

• Pregnancy, childbirth or maternity, paternity, adoption, parental or shared parental leave.
• Whistleblowing (protected disclosure under Public Interest Disclosure Act 1998).
• Asserting a statutory right - e.g. requesting written particulars of employment or asking for the minimum wage.
• Trade union membership, activities or use of union services.
• TUPE transfer (unless ETO reason applies).
• Health and safety concerns raised or acted on by the employee.
• Flexible working request (if that was the reason for dismissal).
• Jury service, part-time worker or fixed-term status.

These categories carry no minimum qualifying period and often higher compensation.

Constructive dismissal

Constructive dismissal is where the employee resigns in response to a fundamental breach of contract by the employer. Common triggers:

• Serious pay reduction imposed unilaterally.
• Serious downgrading of duties or reporting line.
• Bullying, harassment or discrimination not remedied.
• Breach of the implied term of mutual trust and confidence.
• Ordered relocation without contractual basis.

To succeed, the employee must resign promptly in response (delay may waive the breach) and not have affirmed the contract. Then the constructive dismissal is treated as a dismissal for unfair dismissal purposes. See constructive dismissal UK.

Remedies

Unfair dismissal remedies:

• Reinstatement. The employee gets the old job back. Rarely ordered - employer and employee usually cannot work together after litigation.
• Re-engagement. The employee gets a similar job with the same or an associated employer. Also rare.
• Compensation. Basic award (calculated on the redundancy pay scale, capped at £700 per week for 2024-25 and 30 weeks maximum) plus compensatory award (up to £115,115 or 52 weeks pay, whichever is lower, for 2024-25; uncapped for whistleblowing and discrimination-related dismissals).

For the detail see unfair dismissal compensation.

Bringing a claim

Steps to bring an unfair dismissal claim:

1. ACAS Early Conciliation. Compulsory notification of ACAS within 3 months of the effective date of termination. ACAS attempts settlement between the parties for up to 6 weeks.
2. Tribunal claim. If not settled, submit an ET1 form within 3 months less one day of the effective date of termination (extended by the length of ACAS conciliation).
3. Response. The employer files an ET3 response within 28 days.
4. Case management. Preliminary hearing to identify issues, disclosure of documents, witness statements exchange.
5. Final hearing. One to five days depending on complexity. Judgment usually within 6 weeks.

See employment tribunal UK for the full framework.

Useful calculators

• Notice period calculator
• Redundancy pay calculator
• PILON calculator
• Final pay estimator
• Settlement agreement calculator

Related guides

• Unfair dismissal compensation
• Constructive dismissal UK
• Redundancy rights UK
• Employment tribunal UK
• Employment rights hub

Authority pages

• Employment rights hub
• Notice period rights UK
• Redundancy rights UK
• Employment tribunal UK

Frequently asked questions

How long do I need to work before I can claim unfair dismissal?

Ordinary unfair dismissal requires 2 years continuous service at the effective date of termination. Automatic unfair dismissal categories (pregnancy, whistleblowing, asserting a statutory right, discrimination and others) have no qualifying period.

What are the five potentially fair reasons for dismissal?

Capability or qualifications; conduct; redundancy; illegality (continued employment would breach a legal duty); and some other substantial reason (SOSR). The employer bears the burden of proving the reason; without one of these, the dismissal is unfair.

What is procedural fairness?

Following a fair process before deciding to dismiss. The ACAS Code of Practice sets the standard: investigation, written notification of allegations, hearing with right to be accompanied, decision in writing with reasons, right of appeal. Failure to follow the Code can uplift compensation by up to 25 per cent.

How much unfair dismissal compensation can I get?

Basic award (calculated like statutory redundancy pay, capped at 30 weeks pay at £700 per week for 2024-25) plus compensatory award (up to £115,115 or 52 weeks pay whichever is lower for 2024-25; uncapped for whistleblowing and discrimination). See unfair dismissal compensation for the detail.

What is the time limit for an unfair dismissal claim?

3 months less one day from the effective date of termination. ACAS Early Conciliation is compulsory first (notify within the 3 months, extends the deadline by up to 6 weeks). Missing the deadline usually loses the claim.

General information about UK employment law, not legal advice. For your situation, contact ACAS or an employment-law solicitor.