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House of Lords

Polkey v AE Dayton Services Ltd

[1987] UKHL 8

Separates procedural fairness from the question of whether a fair process would have produced the same dismissal.

unfair dismissal procedurecompensation reduction

Legal principle

An employer cannot normally defend an unfair procedure merely by arguing that consultation or a warning would have made no difference. A dismissal may be unfair because of the process, although compensation can be reduced to reflect the chance that a fair process would still have led to dismissal.

What the court decided

The House of Lords treated liability and loss as separate questions. The missing procedure may make the dismissal unfair; the likely outcome of a lawful process is then considered when assessing compensation.

The practical test

  1. 1

    First decide whether the actual dismissal procedure was fair under section 98(4).

  2. 2

    If it was unfair, estimate the chance and timing of dismissal following a fair procedure.

  3. 3

    Apply any evidence-based reduction to compensatory loss rather than rewriting the liability decision.

How tribunals apply it

  • A Polkey reduction can range from a modest percentage to 100%, depending on the evidence.
  • The employer should show what a fair process would have involved and why it would probably have reached the same result.
  • Tribunals should avoid speculative reductions unsupported by evidence.

Connected legislation

WorkDisputes tribunal data

These decisions are selected from topic classifications in our public Employment Tribunal dataset. A matching topic does not mean the decision applied this authority directly.

21 Sept 2026
Mixed outcome

Unfair Dismissal, Discrimination and Unpaid Wages

Employer: Lynx Support Services Ltd

The claims for unauthorised deductions and unfair dismissal were dismissed as out of time, while the discrimination claims were allowed to proceed.

Legal Issues (3)
  • Time limits
  • jurisdiction
  • just and equitable extension of time limits

Reference: 6023481/2024

21 Sept 2026
Claim dismissed

Unfair Dismissal, Discrimination and Other

Employer: Medway Council

All claims were dismissed on the merits after a full hearing; the Tribunal found no unlawful treatment or breach of the relevant regulations.

Legal Issues (4)
  • Interpretation of the Fixed-term Employees Regulations 2002 (less favourable treatment)
  • pregnancy/maternity discrimination under s18 Equality Act 2010
  • automatic unfair dismissal under regulation 10 Maternity and Parental Leave Regulations 1999 (duty to offer suitable alternative vacancy during maternity leave)
  • whether a lower-paid role must be offered with salary protection

Reference: 6012100/2024

21 Sept 2026
Claim struck out

Unfair Dismissal, Discrimination, Breach of Contract and Other

Employer: Monolith UK Ltd

All claims were struck out due to non-compliance with tribunal orders and failure to actively pursue the claims.

Legal Issues (5)
  • Deposit orders under Rule 39
  • strike-out for non-payment under Rule 40(4)
  • definition of disability under s.6 Equality Act 2010
  • burden of proof
  • strike-out for non-compliance under Rule 38

Reference: 3303832/2024

16 Sept 2026
Mixed outcome£1,841 awarded

Unfair Dismissal and Breach of Contract

Employer: Tesco Stores Ltd

The unfair dismissal claim was dismissed (lost) but the wrongful dismissal claim succeeded (won), resulting in a split outcome.

Legal Issues (2)
  • Unfair dismissal under the Employment Rights Act 1996
  • wrongful dismissal (breach of contract) for notice pay

Reference: 2309092/2024

16 Sept 2026
Claimant won

Unfair Dismissal, Unpaid Wages and Breach of Contract

Employer: Bracknell Printroom Ltd

The claimant succeeded on claims of wrongful dismissal and unfair dismissal, with the holiday pay claim withdrawn.

Legal Issues (7)
  • Whether the claimant was dismissed or resigned
  • credibility of witnesses
  • amendment application by respondent
  • witness order for Mr Harcup
  • Polkey argument regarding hypothetical redundancy
  • mitigation of loss
  • calculation of compensatory award for unfair dismissal

Reference: 6012799/2024

15 Sept 2026
Claim struck out

Unfair Dismissal

Employer: Wickes Building Supplies Ltd

The claim was struck out because the claimant lacked the requisite two years' continuous service for an unfair dismissal claim, the claim was presented significantly out of time, and the claimant failed to actively pursue the claim or comply with case management directions.

Legal Issues (3)
  • Jurisdiction to hear an unfair dismissal claim: (1) claimant lacked the requisite two years' continuous employment
  • (2) claim presented out of time (5 months late) with no explanation
  • (3) claim struck out for no reasonable prospect of success and failure to actively pursue (Rule 38)

Reference: 6012922/2025