Unfair Dismissal: Your Complete Guide
Understanding your rights when you've been unfairly dismissed from your job
Time is Critical
You have 3 months minus 1 day from the date of dismissal to make an unfair dismissal claim. Don't delay in seeking advice.
What is Unfair Dismissal?
Unfair dismissal occurs when your employer terminates your employment without a valid reason or fails to follow a fair procedure. To claim unfair dismissal, you generally need to have been employed for at least 2 years (though some exceptions apply).
Fair Reasons for Dismissal
There are only five potentially fair reasons for dismissal:
Capability
Performance or health issues
Conduct
Misconduct or gross misconduct
Redundancy
Role is no longer needed
Statutory Illegality
Continuing to employ you would break the law
Some Other Substantial Reason
A catch-all category for other valid reasons
Signs Your Dismissal May Be Unfair
- No formal warnings before dismissal (for performance/conduct issues)
- No proper investigation before a decision was made
- You weren't given a chance to respond to allegations
- The sanction was disproportionate to the issue
- Others who did the same thing weren't dismissed
- The decision seemed predetermined
- Proper procedures weren't followed
How Settlement Agreements Help
Instead of going through a lengthy tribunal process, many unfair dismissal disputes are resolved through settlement agreements. This offers several advantages:
- Certainty of outcome – you know exactly what you're getting
- Speed – typically resolved within days, not months
- Confidentiality – the terms remain private
- Reference – often includes an agreed reference
- Clean break – both parties move on without ongoing disputes
What Compensation Can You Get?
Unfair dismissal compensation is made up of two elements:
- Basic Award: Calculated like statutory redundancy pay (based on age, length of service, and weekly pay up to £700)
- Compensatory Award: Up to £115,115 (or 52 weeks' gross pay, whichever is lower) for actual losses
Note: These figures are subject to annual review. Settlement agreements often include additional sums for waiving claims.
Need Help with Your Settlement Agreement?
If you've received a settlement agreement following a potential unfair dismissal, we can review it within 24 hours. Free to you—your employer pays our fees.
Get Your Free Review