Unfairly Dismissed

What Is Unfair Dismissal?

Unfair dismissal is when your employer ends your employment without a fair reason or without following a fair procedure. Under UK employment law, there are only five potentially fair reasons for dismissal: capability or performance, conduct, redundancy, a statutory restriction (for example, losing your driving licence when driving is essential to your job), and some other substantial reason.

Even if your employer has a fair reason, the dismissal can still be unfair if they did not follow a fair procedure. This usually means giving you notice of the problem, holding a meeting where you can put your side forward, considering your response before making a decision, and giving you the right to appeal. Failure to follow the ACAS Code of Practice on disciplinary and grievance procedures can make a dismissal unfair.

Some dismissals are automatically unfair, regardless of how long you have worked for your employer. These include dismissals for whistleblowing, asserting a statutory right (such as requesting the national minimum wage), pregnancy or maternity leave, trade union membership or activities, and refusing to work in unsafe conditions. For automatically unfair dismissals, you do not need two years' qualifying service.

Am I Eligible to Claim?

To bring an ordinary unfair dismissal claim, you generally need to have been employed for at least two years continuously with the same employer. This qualifying period does not apply to automatically unfair dismissals, such as those related to pregnancy, whistleblowing, or asserting statutory rights.

You must also be an employee, not a self-employed contractor or a worker. The distinction between employee and worker can be complex, and some people who are told they are self-employed may actually be employees in the eyes of the law. If you are unsure about your employment status, get legal advice.

The most critical factor is timing. You have 3 months minus 1 day from the date of your dismissal to contact ACAS for early conciliation. If your last day of work was 15 March, your deadline for contacting ACAS is 14 June. Missing this deadline is almost always fatal to your claim, so act quickly. Do not wait to see if your employer will sort things out informally. Contact ACAS and get legal advice as soon as you lose your job.

If you were dismissed during your notice period, the clock starts from the date your notice period ends, not from when you were told about the dismissal.

The Employment Tribunal Process

Before you can file a tribunal claim, you must go through ACAS early conciliation. This is a free service where an ACAS conciliator tries to help you and your employer reach a settlement without going to tribunal. You can start the process online or by phone. ACAS has up to 6 weeks to try to resolve the dispute, though many cases are resolved more quickly.

If early conciliation does not result in a settlement, ACAS will issue you with an early conciliation certificate. You then have at least one calendar month (or until your original time limit, whichever is later) to file your tribunal claim form, known as an ET1.

Once your claim is filed, your employer has 28 days to respond with their defence (the ET3 form). The tribunal then manages the case through to a hearing. There may be a preliminary hearing to consider procedural issues, and the tribunal may order both sides to exchange documents and witness statements.

The full hearing typically takes place 6 to 12 months after the claim is filed. You can represent yourself or have a solicitor, barrister, or trade union representative represent you. Tribunal hearings are usually held in public, and both sides give evidence and are cross-examined. The tribunal then makes its decision, either on the day or in writing shortly afterwards.

How Much Compensation Could I Win?

If your unfair dismissal claim is successful, the tribunal can award compensation in two parts. The basic award is calculated like statutory redundancy pay: half a week's pay for each full year of service under age 22, one week's pay for each full year of service aged 22 to 40, and one and a half weeks' pay for each full year over 41. The weekly pay is capped at £700 per week (2025/26 rate), and the maximum is 20 years of service.

The compensatory award covers your actual financial losses resulting from the dismissal, such as lost earnings, loss of benefits, and loss of statutory rights. It is capped at the lower of one year's gross pay or £115,115 (2025/26 rate). The cap does not apply to certain automatically unfair dismissals, such as whistleblowing cases.

The tribunal can increase the award by up to 25 percent if your employer unreasonably failed to follow the ACAS Code of Practice. Equally, it can reduce the award if you contributed to your own dismissal through your behaviour, or if you failed to take reasonable steps to find new employment (known as mitigation).

The median tribunal award for unfair dismissal is around £7,000 to £13,000. Most successful claims result in awards of less than £20,000, though high-earning individuals or those who face long periods of unemployment can receive substantially more.

Settlement Agreements

A settlement agreement (formerly called a compromise agreement) is a legally binding contract between you and your employer that resolves the dispute without going to tribunal. Your employer offers you a sum of money and possibly other benefits (such as a reference), and in return you agree not to bring any claims against them.

Many unfair dismissal disputes are resolved through settlement agreements, either during ACAS early conciliation or at any point before the tribunal hearing. Your employer may offer a settlement agreement before you are even dismissed, particularly in redundancy situations or where they want to avoid the time and cost of a tribunal.

For a settlement agreement to be legally valid, you must receive independent legal advice from a qualified adviser, usually a solicitor. Your employer normally pays a contribution towards your legal fees, typically £250 to £500. The solicitor will explain the terms of the agreement and advise you on whether the offer is fair.

When assessing whether a settlement offer is fair, consider the strength of your case, the amount you would likely win at tribunal, the time and stress involved in a tribunal claim, and the tax treatment of the payment. The first £30,000 of a termination payment is usually tax-free.

What to Do Right Now

If you have just been dismissed and believe it was unfair, here is what you should do immediately. First, note down the date of your dismissal and calculate your deadline for contacting ACAS (3 months minus 1 day from that date). Write this date down and set reminders. This is the single most important thing.

Second, gather all relevant documents, including your contract of employment, any disciplinary letters, performance reviews, emails, and anything else related to your dismissal. If you still have access to work emails, save copies of anything relevant. If you have already lost access, make a subject access request under GDPR to get copies of your personal data.

Third, contact ACAS for early conciliation as soon as possible. Do not wait until the deadline is approaching. Starting early gives you more time to negotiate and does not weaken your position. The ACAS conciliation process is free and confidential.

Fourth, get legal advice. Many employment solicitors offer a free initial consultation. You can also get free advice from Citizens Advice, your trade union (if you are a member), or the government's employment helpline. An employment solicitor can assess the strength of your case and advise you on the best way forward.