Losing your job unexpectedly can be stressful, upsetting and financially challenging, particularly if you believe your employer acted unfairly. If you have been dismissed and are concerned about the reason for your dismissal or the process your employer followed, you may have grounds to bring an unfair dismissal claim. This guide explains who can bring a claim, the most common situations that give rise to unfair dismissal claims, the time limits involved and the options available to you.
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What is unfair dismissal?
Unfair dismissal occurs when an employer dismisses an employee without
- A potentially fair reason for dismissal
- A fair process leading to that dismissal
Employers must usually be able to show both. Even where an employer has a potentially fair reason, a dismissal may still be unfair if proper procedures were not followed.
Key facts
Could your dismissal be unfair?
You may have grounds for a claim if your employer
- Failed to investigate properly
- Ignored disciplinary procedures
- Refused to hear your side of the story
- Failed to provide warnings where appropriate
- Denied you the right to appeal
- Selected you unfairly for redundancy
- Treated you differently from other employees
Every case depends on its specific circumstances, but procedural failings can be just as important as the reason for dismissal itself.
What reasons can employers use to dismiss employees?
Employers generally rely on one of five potentially fair reasons
Conduct
Allegations of misconduct or gross misconduct.
Capability
Performance concerns or long-term ill health.
Redundancy
A reduced need for employees to carry out work of a particular kind or at a particular location.
Illegality
Where continued employment would break the law.
Some Other Substantial Reason (SOSR)
A catch-all category that may include business or relationship breakdown issues.
Do you need two years’ service?
Usually, yes — under the rules that currently apply, most employees need two years’ continuous service to bring an ordinary unfair dismissal claim. However, there are important exceptions, and this qualifying period is changing.
What’s changing from 2027?
Under the Employment Rights Act 2025, several unfair dismissal rules are changing. For dismissals with an effective date of termination before 1 January 2027, the current two-year qualifying period still applies.
Swipe to see all columns →
| Rule | Currently | What’s changing |
|---|---|---|
| Qualifying period for “ordinary” unfair dismissal | 2 years’ service | 6 months — from 1 Jan 2027 |
| Cap on compensatory awards | Capped | Cap removed — from 1 Jan 2027 |
| Employment tribunal claim deadline | 3 months less 1 day | 6 months less 1 day — from 1 Oct 2026 |
| How compensation is calculated | Actual & projected losses | No change |
| Non-renewal of a fixed-term contract | Counts as a dismissal | No change |
Existing day-one protections — for example against discrimination or automatically unfair dismissal — are not affected by these changes.
Source: business.gov.uk — Unfair dismissal rights
Automatically unfair dismissal
Some dismissals may be considered automatically unfair. In these situations, employees may be protected regardless of their length of service. Examples include dismissals linked to
- Pregnancy or maternity
- Whistleblowing
- Health and safety concerns
- Trade union activities
- Exercising statutory employment rights
- Flexible working requests
- Discrimination
These cases are often complex and require specialist legal advice.
What is constructive dismissal?
Constructive dismissal occurs when an employee resigns because their employer has committed a serious breach of contract. Examples may include
- Bullying or harassment
- Discrimination
- Significant changes to job duties
- Unilateral changes to an important contractual term such as salary, benefits, holiday or sick pay entitlement
- Failure to address serious workplace grievances
Although the employee resigns, the law can treat the resignation as a dismissal in certain circumstances. Constructive dismissal claims are highly fact-sensitive, so obtaining advice early is particularly important.
Most employment disputes never reach a final tribunal hearing
Many people assume that bringing a claim means appearing before an Employment Tribunal. In reality, many workplace disputes are resolved much earlier.
Proportion that did not proceed to (or result in) a final hearing. Source: Acas Early Conciliation and Employment Tribunal Cases Data, April to June 2025.
What does this mean?
Many disputes are resolved through
- Early Conciliation
- Solicitor-led negotiations
- Settlement agreements
- Employer and employee discussions
This is why obtaining legal advice early can be so important. An experienced employment solicitor can often help identify opportunities to resolve disputes without the cost, delay and uncertainty of a final Tribunal hearing.
Want to talk through your options with our team?
Get in touchWhat compensation could be available?
The amount of compensation depends on the circumstances of the case. A successful claim may include
Basic Award
Calculated using factors including age, length of service and weekly pay.
Compensatory Award
Designed to compensate for financial losses arising from the dismissal, such as
- Loss of earnings
- Future loss of earnings
- Pension losses
- Benefits
- Bonus losses
The value of any claim will depend on the facts of the case and the steps taken to mitigate losses, for example by securing alternative employment or another source of income. A solicitor can provide a realistic assessment of potential compensation based on your circumstances.
The current cap on compensatory awards is also due to be removed from 1 January 2027 — see What’s changing from 2027? above.
Don’t miss the deadline
Time limit
3 months less one day
Most unfair dismissal claims must currently be started within three months less one day of the effective date of termination.
Missing a deadline can mean losing the right to pursue a claim.
This time limit is changing: from 1 October 2026, the deadline for most employment tribunal claims is extending to six months less one day. Until that date, the current three-month deadline continues to apply.
Source: business.gov.uk — Unfair dismissal rights
If you think you may have been unfairly dismissed, seeking advice as soon as possible is essential.
What should you do if you think you have been unfairly dismissed?
Tick each step off as you go.
Employment law deadlines are strict.
Retain emails, dismissal letters and relevant correspondence.
If you have been offered a settlement, seek legal advice before accepting.
Early advice can help you understand your rights, assess the strength of a claim and explore settlement options.
Frequently asked questions
What is the difference between unfair dismissal and wrongful dismissal?+
Unfair dismissal concerns whether an employer had a fair reason and followed a fair procedure. Wrongful dismissal is a breach of contract claim, often relating to notice pay or contractual rights. In some situations, employees may have both claims.
Can I be dismissed during my probation period?+
Yes. Employers can dismiss employees during probation periods, but they must still comply with employment law. Depending on the circumstances, you may still have legal protection, particularly where discrimination or an automatically unfair reason is involved.
What if I’ve already been offered a Settlement Agreement?+
You must obtain legal advice before signing. A Settlement Agreement is a legally binding document and signing it will mean that you waive your right to pursue certain employment law claims in the future.
How quickly should I seek legal advice?+
As soon as possible. Strict time limits apply to unfair dismissal claims and obtaining advice early can help preserve evidence, protect your position and maximise opportunities for settlement.
Can unfair dismissal claims be settled without going to Tribunal?+
Yes. Many claims are resolved through negotiation, Early Conciliation or Settlement Agreements without a final Tribunal hearing.
Speak to our employment experts
If you believe you may have been unfairly dismissed, obtaining advice early can help you understand your rights, protect your position and avoid missing important deadlines.
