Unfair Dismissal
Unfair dismissal is when an employee with 2+ years service is dismissed without a fair reason or without a fair procedure under UK employment law.
legal-terms
Category
intermediate
Difficulty
6 min read
Read time
2025-01-15
Updated
Definition
Short definition
Unfair dismissal is when an employee with 2+ years service is dismissed without a fair reason or without a fair procedure under UK employment law.
Detailed explanation
Unfair dismissal occurs when an employee with qualifying service (usually 2 years) is dismissed without one of the five fair reasons or without following a fair procedure.
The five fair reasons are: capability/qualifications, conduct, redundancy, statutory restriction, and some other substantial reason (SOSR). Even with a fair reason, the procedure must be fair following ACAS Code.
Some dismissals are automatically unfair regardless of service length, including dismissal for asserting statutory rights, whistleblowing, pregnancy, or trade union activities.
Practical guidance
How it works
For fair dismissal: have fair reason, follow fair procedure (investigation, meeting, right of appeal), act reasonably. Document thoroughly.
Best practices
Follow ACAS Code of Practice
Document performance/conduct issues
Investigate thoroughly
Hold fair hearing
Offer appeal
Legal context
Legal basis
Employment Rights Act 1996 s.94-98
Jurisdiction: United Kingdom
Key provisions
2 years qualifying service (usually)
Five potentially fair reasons
Fair procedure required (ACAS Code)
Automatically unfair reasons (no service)
Claim within 3 months less 1 day
Basic and compensatory awards
Official source
Frequently asked questions
How much compensation for unfair dismissal?
Basic award: based on age, service, and weeks pay (max £700/week). Compensatory award: actual loss up to £115,115 or a years pay (whichever is lower). ACAS uplift possible.
Can I claim unfair dismissal without 2 years service?
Only for automatically unfair reasons like pregnancy, whistleblowing, asserting statutory rights, or discrimination. Standard unfair dismissal requires 2 years continuous service.
Related glossary terms
ACAS
ACAS is the UK body providing free employment advice, early conciliation before tribunal claims, and publishing codes of practice on disciplinary and grievance procedures.
Employment Tribunal
Employment Tribunals are UK courts that hear disputes between employers and employees on matters like unfair dismissal, discrimination, and wage claims.
Disciplinary Procedure
A disciplinary procedure is the formal process for addressing employee misconduct or performance issues, following steps including investigation, hearing, warning, and appeal.