Losing your job can be an incredibly stressful experience, particularly if you feel the decision was unwarranted. In the UK, employment legislation exists to safeguard employees from being dismissed without good reason or due process. This protection is known as unfair dismissal.
What Is Unfair Dismissal?
Unfair dismissal occurs when an employer ends someone’s employment without a legitimate reason or fails to follow the appropriate legal procedures. It’s not only the justification for the dismissal that matters, but also how the process is handled. Both must meet legal standards to be considered fair.
Key Factors That May Constitute Unfair Dismissal
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No Justifiable Reason
Employers must have a clear, legally acceptable reason for terminating employment. Recognised fair reasons under UK law include:
- Misconduct – such as theft, repeated lateness, or abusive behaviour
- Inability to perform the role – including poor performance or lack of necessary skills
- Redundancy – when the role is no longer needed
- Legal restrictions – for example, losing a necessary license or relevant qualification
- Some other substantial reason – such as organisational restructuring
If an employer cannot demonstrate one of these reasons, the dismissal could be challenged as unfair.
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Improper Procedure
Even with a valid reason, employers are still obligated to follow a fair and transparent process. This generally involves conducting an investigation, offering the employee a chance to improve if applicable, arranging a formal meeting, and allowing them to respond. The ACAS Code of Practice on Disciplinary and Grievance Procedures outlines how disciplinary and grievance procedures should be carried out.
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Automatically Unfair Dismissals
Some dismissals are deemed unfair under any circumstances, regardless of how long the employee has worked for the company. These include situations where someone is dismissed for:
- Being pregnant or on maternity leave
- Asking for flexible working arrangements
- Whistleblowing (reporting illegal or unethical practices)
- Participating in lawful industrial action
- Exercising statutory employment rights (e.g. requesting minimum wage or holiday pay)
In such cases, there is no minimum employment period required to make a legal claim.
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The Two-Year Rule
In most cases, employees need to have worked continuously for their employer for at least two years before they can claim unfair dismissal. However, this doesn’t apply in instances involving discrimination or automatically unfair dismissals.
Common Examples of Unfair Dismissal
Unfair dismissal can take many forms. Some frequent examples include:
- Being let go after reporting health and safety violations
- Dismissal due to pregnancy or related leave
- Termination following participation in official industrial action
- Failure to follow proper disciplinary procedures in performance-related dismissals
These scenarios may form the basis of a claim at an Employment Tribunal.
Constructive Dismissal: When the Employee Resigns
Sometimes, an employee may feel they have no choice but to resign due to their employer’s conduct. This is known as constructive dismissal. It happens when the employer seriously breaches the employment contract, such as:
- Failing to pay wages
- Allowing bullying or harassment
- Making significant changes to job duties without discussion
To pursue a constructive dismissal claim, the employee must resign promptly and clearly state that their resignation is due to the employer’s actions.
What You Can Do if You Believe You’ve Been Unfairly Dismissed
If you think your dismissal was unfair, the first step is usually to go through Early Conciliation via ACAS. This is a process designed to resolve disputes without going to a tribunal. If the issue remains unresolved, the employee can file a claim with an Employment Tribunal.
If the tribunal agrees the dismissal was unfair, it may:
- Order reinstatement to the original role
- Recommend re-engagement in a similar position
- Award financial compensation, often based on lost earnings and other factors
There are limits to how much compensation can be awarded, except in cases involving whistleblowing or discrimination.
Why Understanding Unfair Dismissal Matters
Understanding your rights around unfair dismissal ensures that employers are held accountable for following fair processes and that employees have recourse when treated unfairly. For employers, this is a reminder to adhere strictly to employment law to avoid costly legal challenges. For employees, it’s a vital tool to contest decisions that may seem unjust or discriminatory.
If you’re currently dealing with dismissal — or are in the process of dismissing someone — it’s crucial to get professional legal advice. Mistakes in this area can lead to serious financial and reputational damage. Contact our employment solicitors in Surrey today on 0800 011 9813.
