Glossary · UK
What is Unfair Dismissal?
A statutory employment right allowing an eligible employee to claim compensation at an employment tribunal if their employer ended their job without a fair reason or without following a fair process.
Full Definition
Unfair dismissal is a statutory right, separate from any contractual claim, that lets an eligible employee challenge the fairness of their dismissal at an employment tribunal. To bring a claim, an employee normally needs at least two years' continuous service with their employer (there are exceptions with no minimum service requirement, such as dismissals related to whistleblowing, pregnancy, or asserting a statutory right). An employer must show both that it dismissed the employee for one of a limited set of potentially fair reasons -- conduct, capability, redundancy, breach of a legal duty, or "some other substantial reason" -- and that it acted reasonably in treating that reason as sufficient to dismiss, including following a fair procedure (investigation, a disciplinary or capability hearing, and a right of appeal). A dismissal can therefore be unfair either because the underlying reason was not genuine or fair, or because the process used to reach it fell short of what a reasonable employer would do, even where the reason itself might otherwise have justified dismissal. Certain dismissals are automatically unfair regardless of the reason given, such as dismissal for pregnancy or maternity leave, for asserting a statutory right, or for whistleblowing. A successful claim can result in a basic award (calculated similarly to statutory redundancy pay, using age, length of service and a capped weekly pay figure) plus a compensatory award reflecting actual financial loss, subject to an annual statutory cap reviewed each April. Claims must generally be lodged within three months less one day of the dismissal, after completing ACAS Early Conciliation.