Unfair dismissal

Overview

For a dismissal to be fair, an employer must show a potentially fair reason and follow a fair process under the unfair dismissal employment rights act framework.

Even if they have a valid reason, the dismissal can still be unfair if the procedure is flawed or the decision is outside the range of reasonable responses.

What are the 5 reasons for fair dismissal?

• Conduct
• Capability or performance
• Redundancy
• Statutory restriction
• Some other substantial reason

What makes a dismissal procedure fair?

• A reasonable investigation was carried out.
• You were told the allegations and evidence.
• You had the chance to respond and be accompanied.
• A decision was made by someone impartial.
• You had the right to appeal.

Qualifying Service Rules

• In most cases, you need two years of continuous service with your employer to claim unfair dismissal.
• What is the difference between qualifying service and reckonable service? Qualifying service refers to the time needed for the right to claim, while reckonable service determines the amount of your payout.
• In Northern Ireland, the qualifying service northern ireland rules may differ from the rest of the UK.
• Check if you were dismissed just before reaching the two-year mark; statutory notice may still count towards your total service.
• Some dismissals are 'automatically unfair' (e.g., whistleblowing, pregnancy, or asserting a statutory right) and do not require any length of service.

Understanding the award components

1. 01

   Basic award calculator

   The basic award is based on your age, length of service (reckonable service), and weekly pay (capped at a statutory limit). Use an unfair dismissal basic award calculator to find your base amount.

2. 02

   Compensatory award

   This models your actual financial loss from the date of dismissal. A compensatory award calculator unfair dismissal will help you estimate lost wages and benefits.

3. 03

   Statutory Limits

   Note the compensatory award cap unfair dismissal. For cases filed in 2024, check the tribunal compensation limits 2024. For more recent cases, the unfair dismissal compensation cap 2025 and 2026 codes apply.

4. 04

   Duty to Mitigate

   You must show that you searched for new work to keep your claim for lost earnings valid. The unfair dismissal compensation amount can be reduced if you haven't made a reasonable effort to find a new job.

What are examples of wrongful dismissal?

• Breach of Notice: Dismissing you without notice or pay in lieu when you haven't committed gross misconduct.
• Fixed-Term Contracts: Ending a fixed-term contract early without a specific clause allowing for it.
• Contractual Procedures: Failing to follow a disciplinary or redundancy procedure that is explicitly written into your contract.
• Wrongful dismissal acas: ACAS guidance applies mainly to fairness, but breach of contract is common in 'wrongful' claims.

Wrongful dismissal vs unfair dismissal

• The wrongful dismissal meaning refers to a breach of your employment contract (usually a failure to give correct notice).
• A wrongful dismissal claim can often be brought even for a wrongful dismissal under 2 years of service, as it focuses on the contract rather than statutory rights.
• Unlike unfair dismissal, wrongful dismissal during probationary period is common if notice terms are ignored.
• You can pursue wrongful dismissal acas early conciliation alongside other claims.
• In a tribunal, wrongful dismissal compensation is usually limited to your notice pay and benefits.

Common questions