The Complete Guide to Unfair Dismissal in England & Wales

If you've been dismissed from your job, you're not alone. In 2023/24, 97,000 employment tribunal claims were filed in England & Wales - a 13% increase from the previous year. The average unfair dismissal award has risen to £13,749, with some cases reaching £179,000.

This guide explains your rights, the dismissal process, and how to determine if you have a valid claim for unfair dismissal.

What is Unfair Dismissal?

Unfair dismissal occurs when your employer terminates your employment without:

A fair reason for dismissal
Following proper dismissal procedures
Acting reasonably in treating that reason as sufficient for dismissal

Are You Eligible to Claim?

To bring an unfair dismissal claim, you must:

✓ Have 2 years' continuous service (with the same employer)
✓ Be an employee (not self-employed or a contractor)
‍✓ Have been dismissed (not resigned, unless constructive dismissal applies)
‍✓ Claim within 3 months of your dismissal date (minus one day)

Important: The 2-year rule doesn't apply if you were dismissed for an automatically unfair reason (see below).

The Five Fair Reasons for Dismissal

Under the Employment Rights Act 1996, there are only five potentially fair reasons an employer can rely on:

1. Capability or Qualifications

Your ability to do the job, including:

Poor performance over time
Lack of required qualifications
Ill health affecting your ability to work

What makes it fair: Your employer must demonstrate they've provided support, warnings, and reasonable opportunities to improve.

2. Conduct

Your behaviour at work, such as:

Theft or dishonesty
Violence or threatening behaviour
Serious breach of health and safety rules
Being under the influence of alcohol or drugs

What makes it fair: Your employer must investigate properly, hold disciplinary meetings, and give you the chance to respond to allegations.

3. Redundancy

Your position is no longer needed because:

The business is closing
The workplace is closing
The need for that type of work has diminished

What makes it fair: Genuine redundancy situation, fair selection process, proper consultation, and consideration of alternative roles.

4. Statutory Restriction

You can no longer legally do your job, such as:

Losing your driving licence when driving is essential
Losing professional registration required for the role
Visa restrictions preventing continued employment

What makes it fair: The restriction must genuinely prevent you from doing your job, and your employer must consider alternatives.

5. Some Other Substantial Reason (SOSR)

A catch-all category that might include:

Business reorganisation
Personality clashes affecting the business
Breakdown of trust and confidence

What makes it fair: The reason must be substantial, genuine, and the dismissal must be reasonable in the circumstances.

Automatically Unfair Reasons

You can claim unfair dismissal from day one of employment if dismissed for:

Pregnancy or maternity-related reasons
Taking parental leave or time off for dependants
Health and safety concerns or activities
Whistleblowing (making a protected disclosure)
Asserting a statutory right (like requesting payslips or minimum wage)
Trade union membership or activities
Jury service
Exercising rights under the Working Time Regulations
Making a flexible working request
Being a part-time or fixed-term worker

These dismissals are considered automatically unfair regardless of your length of service.

The Proper Dismissal Procedure

A fair dismissal requires your employer to follow proper procedures, typically including:

1. Investigation

Gather facts and evidence
Interview relevant witnesses
Review documentation

2. Invitation to Disciplinary Meeting

Written notice of the meeting
Details of the allegations or concerns
Right to be accompanied by a colleague or trade union representative
Reasonable notice (usually 48 hours minimum)

3. Disciplinary Meeting

Opportunity to hear and respond to evidence
Chance to present your case
Consider your explanations
Right to be accompanied

4. Decision

Reasonable conclusion based on evidence
Explanation of decision in writing
Information about appeal rights

5. Right of Appeal

Opportunity to appeal the decision
Appeal heard by someone not previously involved
Outcome communicated in writing

What Makes a Dismissal Unfair?

Even if your employer has a potentially fair reason, the dismissal can still be unfair if:

❌ No proper investigation - They didn't gather facts or hear your side
❌ Procedural failures - They didn't follow proper disciplinary procedures
❌ Inconsistent treatment - Others were treated differently for similar issues
❌ Unreasonable decision - No reasonable employer would have dismissed in those circumstances
❌ Predetermined outcome - The decision was made before the process
❌ No consideration of alternatives - They didn't consider less severe sanctions

Common Scenarios of Unfair Dismissal

Scenario 1: Performance Dismissal Without Warnings

The Situation: You were dismissed for poor performance, but never received formal warnings or a performance improvement plan.

Why It's Unfair: Employers must provide clear expectations, feedback, warnings, and support before dismissing for capability issues (except in cases of gross incompetence).

Scenario 2: Dismissal During Sick Leave

The Situation: You were dismissed while off work with a medical condition, with little or no consultation about your health or return to work.

Why It's Unfair: Employers must obtain medical evidence, consider reasonable adjustments, explore alternatives, and follow proper capability procedures.

Scenario 3: Flawed Disciplinary Process

The Situation: You were invited to a meeting, dismissed on the spot, and denied the right to appeal or be accompanied.

Why It's Unfair: Serious breaches of the ACAS Code of Practice make the dismissal procedurally unfair, even if a fair reason existed.

How Much Compensation Could You Receive?

Unfair dismissal compensation consists of two elements:

Basic Award

Calculated like statutory redundancy pay:

0.5 week's pay for each full year under age 22
1 week's pay for each full year aged 22-40
1.5 week's pay for each full year aged 41+
Maximum 20 years' service counted
Week's pay capped at £643 (as of April 2024)
Maximum basic award: £19,290

Compensatory Award

Covers your financial losses:

Lost wages from dismissal to hearing
Future loss of earnings (typically 6-12 months)
Loss of statutory rights (usually £500)
Loss of benefits (pension, car, health insurance)
Expenses incurred in finding new work
Maximum compensatory award: £115,115 (or 52 weeks' gross pay if lower)

Recent Statistics:

Median award: £6,746
Average award: £13,749
Highest award 2023/24: £179,000

Note: Awards can be increased by up to 25% if your employer unreasonably failed to follow the ACAS Code, or reduced by up to 25% if you failed to follow it.

The Time Limit: Act Quickly

You must:

Start ACAS Early Conciliation within 3 months minus one day of your dismissal
Submit your ET1 claim form within 3 months of your dismissal (extended by the duration of ACAS conciliation)

Example: If dismissed on 1st January, you must contact ACAS by 31st March.

Important: Missing the deadline usually means losing your right to claim. Courts rarely extend time limits unless exceptional circumstances apply.

Your Next Steps

Week 1: Immediate Actions

✓ Note your dismissal date and calculate your deadline
✓ Request written reasons for dismissal (your employer must provide within 14 days)
✓ Gather all relevant documents (contract, emails, warnings, policies)
✓ Write down what happened while fresh in your memory

Week 2-3: Evidence Gathering

✓ Collect witness contact details
✓ Save all correspondence with your employer
✓ Document financial losses and job search efforts
✓ Keep evidence of your job search (applications, interviews)

Week 3-4: Seek Legal Advice

✓ Contact ACAS for Early Conciliation
✓ Get expert legal assessment of your case
✓ Understand your compensation potential
✓ Consider no win, no fee representation

How Unfair Dismissal UK Can Help

We provide expert legal representation with:

✓ Fixed fees - No hidden costs or hourly billing
✓ No win, no fee - Available for qualifying cases over £10,000
✓ AI-powered case assessment - Expert evaluation within 24 hours
✓ Maximum compensation - Average client awards of £18,500
✓ Transparent process - Clear updates at every stage

Ready to fight your unfair dismissal?
Get your free case assessment in under 2 minutes. Our employment law experts will review your situation and explain your options with no obligation.

Calculate Your Compensation: Use Our Free Claim Calculator

Speak to an Expert:
📞 Call: 0330 043 3008
💬 WhatsApp: +44 7418 641 785
📧 Email: office@unfair-dismissal.uk

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