Unfair dismissal is one of the most common employment law claims brought to the employment tribunal in England and Wales. Understanding what makes a dismissal unfair, and what your employer is required to do before dismissing you, which is the first step in assessing whether you have a claim.
Unfair dismissal occurs when your employer dismisses you without a fair reason or without following a fair procedure. The law recognises five potentially fair reasons for dismissal: capability or qualifications, conduct, redundancy, the fact that continuing employment would breach a statutory restriction, or some other substantial reason. If your employer cannot establish one of these reasons, the dismissal is automatically unfair.
To bring an ordinary unfair dismissal claim, you generally need to have been continuously employed for at least two years. If you were dismissed within your first two years, you cannot bring an unfair dismissal claim unless the dismissal falls into a category that does not require a qualifying period. These include dismissals connected to whistleblowing, pregnancy or maternity, asserting a statutory right, or trade union activity.
Even where an employer has a valid reason for dismissal, the dismissal can still be unfair if the procedure was not followed correctly. The employer must investigate the matter properly before making a decision, hold a disciplinary hearing at which the employee can put their case, allow the employee to be accompanied at the hearing, and give the employee the right to appeal the decision.
The ACAS Code of Practice on Disciplinary and Grievance Procedures sets the standard that employment tribunals apply. A failure to follow the Code can result in an uplift to any compensation awarded.
Compensation for unfair dismissal consists of a basic award, calculated in the same way as a statutory redundancy payment based on age, length of service, and weekly pay, and a compensatory award covering actual financial loss. The compensatory award is capped at a statutory maximum, currently the lower of one year's gross pay or the prescribed limit.
You have three months less one day from the date of dismissal to start ACAS early conciliation, which is a compulsory first step before bringing a tribunal claim. Missing this deadline means losing your right to claim entirely, regardless of the merits of your case.
Unfair dismissal occurs where the employer lacks a fair reason or fails to follow a fair procedure. A two-year qualifying period applies to most claims. Compensation includes a basic and compensatory award. The time limit is three months less one day from dismissal, after ACAS early conciliation.
If you'd like some early advice from a direct access barrister, our team can get a quote over to you for consideration. Contact us here.