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Unfair dismissal UK: what it is and how to tackle it

Unfair dismissal UK: what it is and how to tackle it

Think you’ve been unfairly dismissed? Learn what counts, time limits, how to claim, and what compensation you could receive. Expert guide from National Employees Union.

Losing your job destabilises everything — income, routine, confidence. When the dismissal was unfair — the reason was wrong, the process was flawed, or you were singled out — the injustice compounds the loss. UK employment law protects employees from unfair dismissal. If your employer got it wrong, you have the right to challenge the decision. But the rules are strict and the time limits are short, so understanding where you stand and acting quickly matters more than anything else.

Contents

What is unfair dismissal?

Unfair dismissal is when your employer terminates your employment either for a reason that is not one of the five fair reasons recognised by law, or without following a fair procedure — even if the underlying reason was potentially valid.

The law is set out in the Employment Rights Act 1996 (Part X). It applies to employees — not workers or self-employed contractors (although some workers have other protections).

To bring a standard unfair dismissal claim, you normally need at least two years’ continuous service with the same employer. There are exceptions (see automatically unfair dismissal below) where no minimum service is required.

Fair reasons for dismissal

UK law recognises five potentially fair reasons:

ReasonWhat it means
ConductYour behaviour — misconduct, breach of rules, gross misconduct
CapabilityYour ability to do the job — including performance and health-related issues
RedundancyYour role is no longer needed (the job disappears, not the person)
Statutory illegalityContinuing to employ you would break the law — e.g., you lose a driving licence required for the job
Some other substantial reason (SOSR)A catch-all — breakdown in trust, business reorganisation, refusal of reasonable contract changes

Having a fair reason is necessary but not sufficient. Your employer must also follow a fair procedure. A fair reason handled badly is still unfair dismissal.

Redundancy is one of those reasons, and your redundancy rights decide whether it was handled properly.

When dismissal is unfair

Your dismissal is likely unfair if:

A dismissal for misconduct turns on whether the conduct counted as gross misconduct.

The reason was not genuine

Your employer says you were dismissed for poor performance. But there is no evidence of performance issues, no previous warnings, and no performance improvement plan. The stated reason does not match the facts. The reason is not genuine.

The procedure was flawed

Even if the reason is valid, the process must be fair. Your employer should have carried out a reasonable investigation, told you the full case in writing with evidence, held a formal hearing where you could respond, allowed you to be accompanied by a trade union representative or colleague, considered your response genuinely before deciding, and offered a right of appeal.

These steps mirror the ACAS Code of Practice on Disciplinary and Grievance Procedures. An employer who skipped steps faces a potential 25% uplift in compensation at tribunal.

For detailed guidance, see our complete guide to disciplinary and grievance procedures.

The decision was out of proportion

Dismissal should be a last resort for most issues. If you were dismissed for a first offence that did not amount to gross misconduct, or if a warning would have been more appropriate, the sanction may be out of proportion — making the dismissal unfair.

You were treated inconsistently

A colleague did the same thing and received a lesser sanction. That inconsistency could make your dismissal unfair.

Automatically unfair dismissal

Some reasons for dismissal are automatically unfair — you do not need two years’ service to claim, and your employer cannot argue the dismissal was reasonable. These include dismissal for:

  • Pregnancy, maternity, or family leave — taking or requesting maternity, paternity, adoption, shared parental, or parental leave
  • Trade union membership or activities — joining a union, participating in union activities, or using union services
  • Whistleblowing — making a protected disclosure about wrongdoing (under the Public Interest Disclosure Act 1998)
  • Asserting a statutory right — requesting a written statement of terms, asking about pay, or raising health and safety concerns
  • Health and safety — refusing to work in conditions you reasonably believe are dangerous
  • Jury service — being dismissed for attending jury duty
  • Flexible working requests — being dismissed for requesting flexible working
  • Fire and rehire — from 1 January 2027, being dismissed for refusing to accept changes to your contract will be automatically unfair in most cases
  • Part-time or fixed-term status — being treated less favourably because of your working pattern

If you were dismissed for any of these reasons, you may have a claim regardless of how long you have worked for your employer.

Dismissal for raising a concern in the public interest is automatically unfair, as our guide to whistleblowing protection explains.

Dismissal for joining a union is in the same class, and our guide to being protected for joining a union sets out the three sections of the law that cover it.

Constructive dismissal

Constructive dismissal occurs when you resign because your employer’s conduct has fundamentally breached your employment contract, leaving you with no reasonable alternative but to leave.

Examples include a significant, unilateral cut to your pay or change to your contract, sustained bullying or harassment that your employer failed to address, demotion without justification, a fundamental breakdown in trust caused by your employer’s actions, or failure to pay wages (including sick pay).

Points to know:

  • You must resign in response to the breach — not weeks or months later, or it may appear you accepted the situation
  • You should have raised the issue (ideally through a formal grievance) before resigning
  • The breach must be serious enough to justify resignation — not every disagreement qualifies
  • Constructive dismissal claims are harder to prove than standard unfair dismissal — take advice before you resign

Resigning is a high-risk route, set out in full in our guide to constructive dismissal.

Wrongful dismissal vs unfair dismissal

These are different legal claims:

 Unfair dismissalWrongful dismissal
What it coversThe reason for dismissal or the processBreach of contract terms (usually notice period)
Who can claimEmployees with 2+ years’ service (or automatically unfair reasons)Any employee, from day one
Where to claimEmployment TribunalEmployment Tribunal or county court
CompensationBasic award + compensatory award (capped)Typically the value of the notice period you should have received
Time limit3 months minus 1 day from dismissal (after Early Conciliation)6 years (county court) or 3 months minus 1 day (tribunal)

You can sometimes claim both — for example, if you were unfairly dismissed and your employer also failed to pay your notice.

Do you have a claim?

Ask yourself these questions:

  • Were you an employee? (Not a worker or self-employed — though if there is a dispute about your status, this can be tested)
  • Do you have two years’ continuous service? (If not, does one of the automatically unfair reasons apply?)
  • Were you dismissed? (Including constructive dismissal — but not if you resigned voluntarily with no employer breach)
  • Was the reason fair? (Was it genuinely conduct, capability, redundancy, statutory illegality, or SOSR?)
  • Was the process fair? (Did your employer investigate, inform you, hold a hearing, allow accompaniment, and offer an appeal?)
  • Was the decision proportionate? (Was dismissal a reasonable response, or would a lesser sanction have been appropriate?)

If the answer to any of the last three is “no,” you may have a claim.

How to challenge an unfair dismissal

Appeal internally first, using the grounds that work in a disciplinary appeal.

Step 1: appeal internally

If you have not already, use your employer’s appeal process. Employment Tribunals expect this, and failure to appeal could reduce your compensation. See the appeals section in our disciplinary and grievance guide.

Step 2: start ACAS Early Conciliation

Before you can submit a tribunal claim, you must go through ACAS Early Conciliation. It is free and confidential.

Contact ACAS online or call 0300 123 1100. ACAS will try to help you and your employer reach a settlement without a tribunal hearing. You will receive an Early Conciliation Certificate, which you need to submit your claim.

Starting Early Conciliation stops the clock on your time limit. Do this as soon as possible.

Step 3: submit an ET1 claim form

If conciliation does not resolve the matter, submit a claim to an Employment Tribunal using the ET1 form (available online). Set out the facts, the legal basis (unfair dismissal under the Employment Rights Act 1996), and the remedy you are seeking — compensation, reinstatement, or re-engagement.

Step 4: prepare for the hearing

The tribunal will list the case for a hearing. You will need a bundle of documents, a witness statement, and may need to attend a preliminary hearing. This is where having support — from a trade union or solicitor — is most valuable.

Compensation: what could you receive?

If the tribunal finds your dismissal was unfair, you can receive:

Basic award

Calculated like a redundancy payment: half a week’s pay for each full year of service when you were under 22, one week’s pay for each full year between 22 and 40, and one and a half weeks’ pay for each full year at age 41 or over.

Weekly pay is capped at £700 (2025/26) and the maximum basic award is £21,000.

Compensatory award

This covers the financial loss caused by the dismissal: loss of earnings (past and future), loss of benefits (pension, company car), loss of statutory rights, and expenses (job search costs).

The compensatory award is capped at the lower of £115,115 or 52 weeks’ pay (2025/26 figures). The cap does not apply to dismissals involving whistleblowing or health and safety.

Uplift for failure to follow the ACAS code

If your employer unreasonably failed to follow the ACAS Code of Practice, the tribunal can increase compensation by up to 25%.

Alternative remedies

Instead of compensation, the tribunal can order reinstatement (your old job back on the same terms) or re-engagement (a comparable role). These are rare in practice, but available.

Dismissals for poor performance normally follow performance improvement plans, and a plan set up to fail weakens your employer’s case.

Time limits

This is the most important point: you have three months minus one day from the date of your dismissal to begin ACAS Early Conciliation.

If your effective date of termination was 1 June, your deadline to contact ACAS is 31 August. Miss this deadline and you almost certainly lose the right to claim — tribunals rarely extend time limits for unfair dismissal.

Act early. Do not wait until the last week. Contact ACAS or a trade union as soon as you believe your dismissal was unfair.

The clock runs from the dismissal date, and our step-by-step tribunal guide shows each deadline.

FAQs

Can I claim unfair dismissal during my probation period?

Not for standard unfair dismissal — you normally need two years’ continuous service. You can claim if the reason is automatically unfair (pregnancy, whistleblowing, trade union membership), regardless of length of service. You may also have a wrongful dismissal claim if your employer did not give you the contractual or statutory notice you were entitled to.

What if I was dismissed for redundancy but the redundancy was not genuine?

If the redundancy was not genuine, you may have a claim for unfair dismissal. Genuine redundancy requires the job itself to have disappeared or significantly diminished. Warning signs of a sham redundancy: your role still exists under a different title, someone else was hired to do the same work, or you were selected using unfair criteria while others in similar roles were kept on.

Can I claim if I was dismissed for gross misconduct?

Yes. Gross misconduct is a potentially fair reason for dismissal, but the process must still be fair. Your employer must investigate, hold a hearing, allow accompaniment, and offer an appeal. Missing any of these steps makes the dismissal procedurally unfair — even if the underlying misconduct was serious. A fair reason does not excuse an unfair process.

What if my employer offers a settlement agreement?

A settlement agreement is a legally binding document where you waive your right to bring tribunal claims in exchange for a financial payment — usually more than your statutory entitlement. You must receive independent legal advice before signing. Do not sign under pressure. A trade union representative or solicitor can assess whether the offer reflects the true value of your claim and negotiate better terms.

Can I represent myself at an Employment Tribunal?

Yes — many claimants do. But tribunal claims are complex and procedurally demanding. The other side will often have professional representation. Having a trade union representative or solicitor improves your chances of a favourable outcome and reduces the burden of the process.

How National Employees Union can help

Being dismissed is one of the hardest things to deal with. Tackling it alone is harder still. Experienced representation can make the difference between a successful claim and a missed opportunity.

National Employees Union members get:

  • Expert assessment of whether you have a claim — and honest advice on its strength
  • Support with appeals — to challenge the dismissal through your employer’s internal process
  • Guidance through ACAS Early Conciliation
  • Help with Employment Tribunal claims — from preparing your ET1 to representation at the hearing
  • Advice on settlement agreements — making sure any offer reflects what your claim is worth
  • Constructive dismissal guidance — including whether resigning is the right move

Time limits are strict. If you think you have been unfairly dismissed, get advice now.

Join the National Employees Union

Membership from £15/month. Advice and representation on your own case start three months after you join. If you need help sooner, a £237 surcharge applies.

Written by the National Employees Union team. We represent employees in unfair dismissal cases across the UK. This guide is reviewed regularly and was last updated in July 2026. For advice on your situation, contact us.

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National Employees Union was formed in September 2021 in response to Regulations requiring care workers and NHS staff to be vaccinated, in order to keep their jobs. Major trade unions had abandoned 40,000 care workers and 100,000 NHS staff.

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