What is unfair dismissal?

Unfair dismissal is one of the most common employment tribunal claims in the UK. Here is what it means, when it applies, and how to assert your rights.

What is unfair dismissal?

Unfair dismissal is when an employer dismisses an employee without a valid reason or without following a fair procedure. Under the Employment Rights Act 1996, employees with 2 years' continuous service (reducing to 6 months from April 2027) have the right not to be unfairly dismissed. If your employer cannot show a potentially fair reason — or cannot show they acted reasonably — the dismissal is unfair and you can claim compensation at the employment tribunal.

What are the five fair reasons for dismissal?

The Employment Rights Act 1996 sets out five potentially fair reasons for dismissal: (1) Capability — including poor performance or ill health; (2) Conduct — misconduct or gross misconduct; (3) Redundancy — genuine reduction in need for the work; (4) Statutory illegality — continuing employment would break the law; (5) Some other substantial reason (SOSR) — a catch-all for other genuine business reasons. A dismissal is only fair if the reason falls into one of these categories AND the employer acted reasonably.

What is the difference between unfair dismissal and wrongful dismissal?

Unfair dismissal is a statutory right under the Employment Rights Act 1996 — it concerns whether the employer had a valid reason and acted reasonably. Wrongful dismissal is a common law (contract law) claim — it concerns whether the employer breached the employment contract by dismissing without proper notice. You can have both at the same time, or either one without the other. Wrongful dismissal can be claimed in the civil courts as well as the tribunal.

What is automatically unfair dismissal?

Some dismissals are automatically unfair regardless of length of service or the reason given. These include dismissal for: pregnancy or maternity leave; whistleblowing (making a protected disclosure); asserting a statutory right (such as the right to the National Minimum Wage); trade union membership or activities; carrying out health and safety duties; jury service; or requesting flexible working (after the Employment Rights Act 2025 changes). No qualifying period is needed for automatically unfair dismissal claims.

Does it matter if my employer had a reason but did not follow procedure?

Yes — significantly. Even if an employer had a potentially fair reason, the dismissal can still be unfair if the employer failed to follow a fair procedure. The ACAS Code of Practice on Disciplinary and Grievance Procedures sets the standard. A failure to investigate properly, failure to give adequate warning, denial of the right to be accompanied, or failure to offer an appeal can all make an otherwise justified dismissal procedurally unfair.

Do I need 2 years' service to claim unfair dismissal?

Yes — for most unfair dismissal claims, you need 2 years' continuous service with the same employer at the date of dismissal. However, there is no qualifying period for automatically unfair dismissal (pregnancy, whistleblowing, trade union activities, etc.) or for discrimination claims under the Equality Act 2010. From April 2027, the qualifying period for ordinary unfair dismissal reduces to 6 months under the Employment Rights Act 2025.

How much compensation can I get for unfair dismissal?

An unfair dismissal award has two parts: (1) the Basic Award, calculated using age, years of service and weekly pay (capped at £643/week from April 2024) — similar to statutory redundancy pay; and (2) the Compensatory Award, covering your actual financial losses (lost earnings, pension contributions, and job search costs), capped at the lower of £115,115 or 52 weeks' gross pay. Where discrimination is also proven, there is no cap on the compensatory element.

Can I claim unfair dismissal if I resigned?

Not for ordinary unfair dismissal — you must have been dismissed. However, if your employer's conduct forced you to resign (for example, by fundamentally breaching your employment contract), you may have a constructive dismissal claim. Constructive dismissal is treated as a dismissal in law and follows the same tribunal process.

What is unfair dismissal?

Last updated: April 2026 · Employment Rights Act 2025 included

Service needed (dropping to 6 months Apr 2027)

Potentially fair reasons for dismissal

Maximum compensatory award (2024)

Time limit from dismissal to contact ACAS

The legal test: what makes a dismissal unfair?

Under the Employment Rights Act 1996, a dismissal is unfair if your employer cannot satisfy one or both of the following:

1. A potentially fair reason

Your employer must show the dismissal was for one of the five statutory fair reasons: capability, conduct, redundancy, statutory illegality, or some other substantial reason (SOSR). If none of these apply, the dismissal is automatically unfair.

2. Acting reasonably

Even if there was a potentially fair reason, the tribunal must decide whether the employer acted reasonably in dismissing you — considering the circumstances, the size and resources of the employer, and the fairness of the procedure followed. This is the "band of reasonable responses" test.

The five potentially fair reasons for dismissal

Poor performance, lack of qualifications, or inability to do the job due to ill health. Your employer must have followed a fair capability procedure — warnings, support, and opportunity to improve — before dismissing.

Misconduct (e.g. persistent lateness, dishonesty) or gross misconduct (e.g. theft, violence, serious safety breaches). Gross misconduct can justify immediate dismissal without notice — but only after a fair procedure.

A genuine reduction in the need for the type of work you do. The selection process must be fair, and your employer must consider alternative employment before dismissing.

Continuing to employ you would break the law — for example, if you lost your right to work in the UK, or your driving licence and the job requires driving.

A catch-all category for genuine business reasons that do not fit the others — for example, a personality clash disrupting the business, end of a fixed-term contract, or a business reorganisation.

Automatically unfair dismissal — no service required

Some dismissals are automatically unfair regardless of how long you have worked there. There is no 2-year qualifying period for these:

How much could you claim?

Unfair dismissal compensation has two parts: a Basic Award (like redundancy pay) and a Compensatory Award (your actual financial losses).

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Frequently asked questions

Unfair dismissal at tribunal

How to bring an unfair dismissal claim — eligibility, process, and compensation explained.

Just been dismissed — what to do

The immediate steps to take after dismissal: evidence, time limits, and ACAS.

Wrongful dismissal explained

The difference between unfair and wrongful dismissal — and when you can claim both.

Constructive dismissal

When resignation can be treated as dismissal — and how to claim.

Unfair dismissal compensation

How Basic and Compensatory Awards are calculated — and the current caps.

How to prove unfair dismissal

What evidence you need and how to use it at tribunal.