Being dismissed from your job can be a distressingexperience, especially if you feel it was unjust or handled poorly.Understanding what qualifies as unfair dismissal in the UK is the first step towardsknowing your rights and whether you can challenge your employer’s decision.

In this article, we explain what unfair dismissal means, thereasons that might make a dismissal unfair, and the key points you should knowif you think you’ve been treated unlawfully.

What is Unfair Dismissal?

Unfair dismissal occurs when an employer terminates anemployee’s contract either without a fair reason or by failing to follow a fairprocedure. In the UK, employees generally have the right not to be unfairlydismissed if they have worked continuously for the same employer for at leasttwo years. However, there are important exceptions where the two-yearrequirement does not apply.

Fair Reasons for Dismissal

Employers can lawfully dismiss an employee ifthey have a fair reason, which must fall under one of these categoriesset out in the Employment Rights Act 1996:

  • Conduct – Serious misconduct or repeated breaches of workplace rules.
  • Capability or qualifications – If you are unable to do your job properly, including performance issues or long-term illness.
  • Redundancy – When your role is genuinely no longer needed, such as during restructuring or downsizing.
  • Statutory restriction – When continuing your employment would breach a legal requirement (e.g., a driver losing a necessary driving licence).
  • Some other substantial reason (SOSR) – A valid business reason that doesn’t fall into the categories above, like an irretrievable breakdown in trust.

Even with a fair reason, the employer must act reasonablyand follow a fair procedure, including investigating allegations, giving you achance to respond, and following internal and ACAS guidelines.

Automatically Unfair Reasons

Certain reasons for dismissal are considered automaticallyunfair by law. If you are dismissed for any of these reasons, you do not needtwo years’ service to bring a claim. Examples include dismissal for:

  • Pregnancy, maternity leave, or paternity leave.
  • Requesting flexible working arrangements.
  • Joining or refusing to join a trade union, or taking part in trade union activities.
  • Whistleblowing (reporting wrongdoing).
  • Asserting certain statutory rights (e.g., taking time off for dependants or asking for rest breaks).
  • Discrimination related to a protected characteristic (e.g., race, sex, disability, age, religion, sexual orientation) under the Equality Act 2010.
Procedural Unfairness

Even if an employer has a fair reason, the dismissal canstill be unfair if they fail to follow a fair procedure, which includes:

  • Carrying out a proper investigation.
  • Informing you of the allegations in writing.
  • Holding a disciplinary or capability meeting to allow you to present your side.
  • Providing written notice of the outcome.
  • Giving you the right to appeal.

Failure to follow the Acas Code of Practice on Disciplinaryand Grievance Procedures may result in an uplift of up to 25% in anycompensation awarded by an employment tribunal.

When Redundancy Becomes Unfair

Redundancy is a potentially fair reason for dismissal, butit can become unfair if it is handled improperly or used as an excuse todismiss someone for another reason. Common examples of unfair redundancy include:

  • Selectingem ployees for redundancy based on discriminatory criteria (e.g., pregnancy, age).
  • Failing to meaningfully consult with affected employees.
  • Using subjective, inconsistent, or biased selection criteria.
  • Not considering suitable alternative employment.  
       

Employers must use fair and objective selection criteria,consult employees individually, and offer any available alternative roles toavoid an unfair redundancy dismissal.

Remedies for Unfair Dismissal

If a tribunal finds that your dismissal was unfair, they canorder:

  • Reinstatement – Returning you to your old job.
  • Re-engagement – Placing you in a comparable job.
  • Compensation – A basic award (like statutory redundancy pay) plus a compensatory award for your financial losses, subject to statutory limits.    
       

However, compensation may be reduced if you fail to mitigateyour losses by looking for new work or if the tribunal believes you would havebeen dismissed fairly anyway had a proper procedure been followed (known as aPolkey deduction).

What to Do If You Believe You’ve Been Unfairly Dismissed

If you think you’ve been unfairly dismissed, act quickly. Inmost cases, you have only three months less one day from the effectivedate of termination to start your claim by contacting ACAS for EarlyConciliation. This process is mandatory and aims to resolve disputes withoutneeding a tribunal hearing.

Gather evidence such as emails, meeting notes, witnessstatements, and copies of your contract and policies. These can be vital inproving your case or helping negotiate a settlement.

Contact Pre-Law today to book your free initialconsultation.

Call: 01524 907100
Email: info@pre-law.co.uk
Or submit an enquiry through our website: https://www.pre-law.co.uk/contact

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