What is Unfair Dismissal?

Unfair dismissal occurs when an employer ends your employment without a valid reason or fair process, as defined in section 98 of the Employment Rights Act 1996.

In UK employment law, a dismissal is unfair if the employer cannot show a fair reason for it or did not follow a fair procedure. Section 98 of the Employment Rights Act 1996 sets out that the employer must have a reason related to the employee, such as conduct or capability, and that it must be fair to dismiss for that reason.

Tribunals assess both the reason and the procedure used. Even with a fair reason, unfair process can make the dismissal unfair. For example, not investigating allegations properly before sacking someone for misconduct.

This applies to employees, not self-employed or workers, and excludes certain dismissals like redundancy if handled correctly.

Unfair Dismissal Qualifying Period

Most unfair dismissal claims need two years of continuous employment, but exceptions exist for automatically unfair reasons.

Under section 108 of the Employment Rights Act 1996, you generally need two years' continuous service to claim ordinary unfair dismissal. This protects employers from claims by short-term employees.

However, no qualifying period applies for automatically unfair dismissals, such as those related to pregnancy, health and safety, or protected disclosures under sections 99, 100, 103 etc.

Continuous employment ignores gaps under certain regulations, like Employment Protection (Continuity of Employment) Regulations 1996.

Potentially Fair Reasons for Dismissal

Employers can dismiss fairly for conduct, capability, redundancy, legal breaches or some other substantial reason.

Section 98(2) of the Employment Rights Act 1996 lists five potentially fair reasons: capability or qualifications, conduct, redundancy, legal inability to continue employment, or some other substantial reason (SOSR).

For conduct, like theft, the employer must investigate and give chances to improve. Capability covers poor performance; redundancy needs genuine business need.

SOSR is a catch-all for business needs, like client refusal, but must be substantial. Tribunals decide if dismissal was within the range of reasonable responses.

• Conduct: Misbehaviour or absence.
• Capability: Inability to do the job.
• Redundancy: Job no longer needed.
• Illegality: Continuing work illegal.
• SOSR: Other substantial business reasons.

Procedural Requirements and ACAS Code

Fair procedure is essential; the ACAS Code of Practice on Disciplinary and Grievance Procedures guides employers.

Even with a fair reason, dismissal can be unfair without proper procedure. The ACAS Code requires investigation, informing the employee, allowing response, and right to appeal.

Tribunals consider if the employer unreasonably failed to follow the Code, potentially increasing awards by up to 25%.

For example, holding a disciplinary hearing without letting you have evidence beforehand breaches fairness.

1. 1. Investigate fully.
2. 2. Inform of allegations.
3. 3. Hold meeting with companion.
4. 4. Decide and notify.
5. 5. Allow appeal.

Time Limits and Early Conciliation

Claims must start within 3 months minus one day, but ACAS early conciliation pauses the clock.

Section 111(2) of the Employment Rights Act 1996 requires presenting a claim within three months less one day from the effective date of termination.

ACAS early conciliation extends this: the period pauses during conciliation and adds one month after it ends or is declined.

If you miss the limit without good reason, your claim fails. Always start EC promptly.

How to Make an Employment Tribunal Claim

Start with ACAS early conciliation, then submit online via gov.uk if no settlement.

Contact ACAS for early conciliation first; it's free and mandatory. If no resolution, get a certificate to file your claim.

Use the employment tribunal online service to submit form ET1, detailing facts, remedy sought and evidence.

The employer responds with ET3; a preliminary hearing may follow, then full hearing.

1. 1. Notify ACAS within time limit.
2. 2. Participate in conciliation.
3. 3. Get certificate.
4. 4. File claim online.
5. 5. Prepare bundle and represent.

Remedies and Compensation

Successful claims can lead to reinstatement, re-engagement or compensation: basic and compensatory awards.

Remedies include reinstatement (same job), re-engagement (similar job), or compensation. Basic award mirrors redundancy pay, based on age, service, week's pay (capped).

Compensatory award covers losses like earnings to new job, up to £115,115 or 52 weeks' pay. Total often £10k-£30k average.

Reductions for contributory conduct or failure to mitigate.