Unfair Dismissal: Your Rights, Time Limits & What To Do (UK Employee Guide)

Last updated: December 2025 Applies to: England, Wales and Scotland. Not tailored to Northern Ireland.

Important: This guide provides information about UK employment law. It is not legal advice. Every situation is different — if you're facing dismissal or have already been dismissed, consider speaking to a solicitor for advice specific to your circumstances.

Quick Summary

Unfair dismissal happens when your employer ends your employment without a fair reason or without following a fair process. In most cases, you need 2 years' continuous service to claim — but there are important exceptions where you can claim from day one.

If you've been unfairly dismissed, you may be entitled to compensation of up to £118,223 (the current cap as of April 2025), or more if discrimination or whistleblowing was involved.

You have 3 months minus one day from your dismissal date to start the process by contacting ACAS. Miss this deadline and you'll likely lose your right to claim.

Coming change: From 1 January 2027, the qualifying period drops from 2 years to just 6 months, and the compensation cap will be abolished entirely. More on this below.

What Is Unfair Dismissal?

In simple terms, your employer can't just dismiss you without a good reason and without being fair about how they do it. The law protects you through the Employment Rights Act 1996.

Your dismissal might be unfair if your employer:

Didn't have a valid reason to let you go
Didn't follow a fair procedure (like giving warnings, investigating properly, or letting you have your say)
Acted unreasonably in treating that reason as sufficient for dismissal

The key point: Even if your employer had a potentially fair reason, they still need to handle the process fairly. Dismissing someone is serious, and employers have legal responsibilities.

What counts as a "dismissal"?

You've been dismissed if:

Your employer ended your contract (with or without notice)
You were on a fixed-term contract that wasn't renewed
You were forced to resign because of your employer's conduct (this is called constructive dismissal)

If you resigned voluntarily without being forced out, that's not a dismissal — though the line can sometimes be blurry.

Can You Claim Unfair Dismissal?

The 2-year qualifying period

To bring an "ordinary" unfair dismissal claim, you usually need 2 years' continuous service with your employer. This is calculated from your start date to your effective date of termination (usually your last day of work, or the end of your notice period).

If you have less than 2 years' service, you generally can't claim ordinary unfair dismissal. This frustrates many people — but there are important exceptions.

Exceptions: When you DON'T need 2 years

You can claim unfair dismissal from day one if you were dismissed for certain automatically unfair reasons. These include:

Pregnancy and family leave

Being pregnant or on maternity leave
Taking paternity, adoption, or shared parental leave
Requesting parental leave or time off for dependants

Health and safety

Raising genuine health and safety concerns
Refusing to work in conditions you reasonably believed were dangerous
Being a health and safety representative

Whistleblowing

Making a protected disclosure about wrongdoing (fraud, danger, cover-ups)
This protection applies even if your disclosure turned out to be wrong, provided you reasonably believed it

Asserting statutory rights

Asking for the National Minimum Wage
Requesting written terms of employment
Asserting rights under the Working Time Regulations
Asking for statutory leave entitlements

Trade union activities

Being a union member or representative
Taking part in union activities
Participating in lawful industrial action (within the first 12 weeks)

Discrimination-related

If your dismissal relates to a protected characteristic (age, disability, race, sex, religion, sexual orientation, pregnancy, gender reassignment, marriage/civil partnership), you may have a discrimination claim — which has no qualifying period

Other automatically unfair reasons

Refusing to work on Sundays (for shop and betting workers with rights)
Being a pension scheme trustee
Being an employee representative
Exercising rights under TUPE
Jury service
Acting as an occupational pension scheme trustee

For a full explanation of automatically unfair dismissal and when it applies, see our guide: [Automatic Unfair Dismissal: When the 2-Year Rule Doesn't Apply].

The 5 Fair Reasons for Dismissal

Even with 2+ years' service, your employer can fairly dismiss you — but only for one of five reasons set out in law:

1. Capability

You can't do the job to the required standard, either due to skill/performance issues or ill health.

But: Your employer should have tried to help you improve first — through training, support, reasonable adjustments (if you have a disability), or a fair performance management process.

2. Conduct

You've done something wrong — broken workplace rules, behaved inappropriately, or committed misconduct.

But: Your employer must investigate properly, tell you the allegations, let you respond, and give you the right to be accompanied at meetings. Summary dismissal without process is rarely fair, even for serious misconduct.

3. Redundancy

Your job no longer exists — the business is closing, downsizing, or your particular role is no longer needed.

But: Selection for redundancy must be fair and based on objective criteria. Your employer should consult with you and consider alternatives before making you redundant.

4. Statutory illegality

Continuing to employ you would break the law — for example, if you're a driver who's lost your licence, or you no longer have the right to work in the UK.

5. Some other substantial reason (SOSR)

This is the catch-all category for situations that don't fit elsewhere but are still serious enough to justify dismissal — for example, an irretrievable breakdown in working relationships, or a genuine business reorganisation requiring changed terms.

But: SOSR can't be used as a loophole. The reason must be genuinely substantial, and the employer must still act reasonably.

Constructive Dismissal: When You're Forced to Resign

Sometimes employers don't fire you outright — they make your working life so difficult that you feel you have no choice but to quit. This is called constructive dismissal.

To claim constructive dismissal, you need to show:

Your employer committed a fundamental breach of contract (serious enough to justify leaving)
You resigned in response to that breach (not for another reason)
You didn't wait too long before resigning (or you risk being seen as having accepted the breach)

Common examples include: significant pay cuts without agreement, bullying or harassment that management won't address, demotion without consent, or serious failures to provide a safe working environment.

Constructive dismissal claims are complex and can be difficult to prove. If you're considering resigning, get legal advice first — timing and evidence are critical.

For full guidance, see our detailed guide: Constructive Dismissal: When You Can Treat Yourself as Dismissed.

Employment Rights Act 2025: What's Changing

The Employment Rights Act 2025 received Royal Assent on 18 December 2025 — making it the biggest overhaul of UK employment law in a generation. Several changes directly affect unfair dismissal claims.

Qualifying period reduced to 6 months

From 1 January 2027, the qualifying period for ordinary unfair dismissal drops from 2 years to 6 months.

How this works in practice:

Anyone with 6+ months' service on 1 January 2027 gains unfair dismissal protection immediately on that date
Anyone hired from 1 July 2026 onwards will qualify after 6 months of service
The change is retrospective — there won't be a two-tier system

This means someone employed today will gain protection much earlier than under the old rules.

Compensation cap abolished

The current cap on compensatory awards (£118,223 or 52 weeks' pay, whichever is lower) will be removed entirely. This is a significant change — compensation will be based on actual financial loss with no upper limit.

The government will publish an impact assessment before this comes into force. The commencement date is expected to align with the qualifying period change in 2027, but hasn't been confirmed.

Other relevant changes

Change	Expected Date
Tribunal time limits extended from 3 months to 6 months	October 2026
ACAS early conciliation period extended to 12 weeks	Already in force (1 December 2025)
Day-one paternity leave and unpaid parental leave	April 2026
"Fire and rehire" becomes automatically unfair (with limited exceptions)	October 2026
Strengthened pregnancy/maternity dismissal protections	2027

Important: Until these changes come into force, the current rules apply. Work to the existing deadlines and qualifying periods — don't assume new rights apply until they're confirmed as in effect.

For the latest updates, see:

ACAS Employment Rights Bill page: www.acas.org.uk/employment-rights-bill
Gov.uk implementation guidance: www.gov.uk/government/publications/employment-rights-bill-factsheets

Compensation: What Could You Receive?

If your unfair dismissal claim succeeds, you may be entitled to compensation made up of two parts:

Basic Award

Calculated like statutory redundancy pay, based on your age, length of service, and weekly pay (capped at £719 from April 2025).

The formula:

1.5 weeks' pay for each complete year of service when you were 41 or over
1 week's pay for each complete year when you were 22–40
0.5 weeks' pay for each complete year when you were under 22

Maximum length of service counted: 20 years.

Maximum basic award: £21,570 (April 2025).

Compensatory Award

This covers your actual financial losses from the dismissal: lost earnings, lost benefits (pension, company car, health insurance), and expenses incurred finding new work.

The tribunal aims to put you in the position you would have been in financially had you not been unfairly dismissed — but compensation is limited to what's "just and equitable."

Maximum compensatory award: The lower of £118,223 or 52 weeks' gross pay (April 2025 figures).

No cap applies if you were dismissed for:

Whistleblowing (making a protected disclosure)
Health and safety reasons
Discrimination (where injury to feelings is also awarded)

Adjustments to your award

Your compensation may be increased by up to 25% if your employer unreasonably failed to follow the ACAS Code of Practice on disciplinary and grievance procedures.

It may be reduced if:

Your own conduct contributed to the dismissal
You failed to mitigate your loss (didn't look for new work)
You unreasonably failed to follow the ACAS Code
The employer can show they would have dismissed you anyway, even with a fair process ("Polkey reduction")

If discrimination was involved

If your dismissal involved discrimination, you may also claim injury to feelings compensation under the Vento bands (April 2025):

Band	Amount	For
Lower	£1,200 – £12,100	Less serious one-off incidents
Middle	£12,100 – £36,400	Serious cases not meriting the upper band
Upper	£36,400 – £60,700	The most serious cases
Exceptional	Above £60,700	Only the most exceptional cases

Discrimination compensation is uncapped.

Reality check

The median tribunal award for unfair dismissal in 2023/24 was around £13,000. Most cases settle before reaching a full hearing — often achieving better outcomes than contested hearings, with less stress and cost. Don't assume you'll receive the maximum.

⏰ Time Limits: Don't Miss Your Deadline

This is critical. You have 3 months minus one day from your effective date of termination to start the tribunal claim process.

How to calculate your deadline

Your "effective date of termination" (EDT) is usually:

Your last day of work if you were dismissed without notice
The end of your notice period if you worked your notice (or were paid in lieu)

Example: If your last day was 15 January 2025, your deadline is 14 April 2025.

ACAS Early Conciliation: You must do this first

Before you can submit a tribunal claim, you must contact ACAS to start early conciliation. This is a free service where ACAS tries to help you and your employer reach a settlement without going to tribunal.

As of 1 December 2025, the early conciliation period can last up to 12 weeks (previously 6 weeks). This "stops the clock" on your tribunal deadline.

Once early conciliation ends (whether you settle or not), you'll receive an Early Conciliation Certificate. You then have at least 1 month from that date to submit your tribunal claim.

Key point: Contact ACAS well before your 3-month deadline runs out. If you leave it until the last few days and something goes wrong, you could lose your right to claim.

What if I've missed the deadline?

Tribunals can extend time limits in exceptional circumstances, but this is rare. For unfair dismissal, you'd need to show it wasn't "reasonably practicable" to claim in time — a tough test. Don't rely on getting an extension.

If you think you might be close to or past your deadline, see our guide: Missed Your Tribunal Deadline? You Might Still Have Options.

Coming change: From October 2026, tribunal time limits are expected to extend from 3 months to 6 months. But this doesn't apply yet — work to the current deadline.

Your Action Plan: What To Do Right Now

If you've just been dismissed

This week:

Note your effective date of termination — calculate your 3-month-minus-1-day deadline immediately
Request written reasons for dismissal — you have a legal right to this if you have 2+ years' service (or are pregnant/on maternity leave)
Gather your documents — contract, employee handbook, payslips, any letters or emails about your dismissal
Write down what happened — dates, times, who said what, while it's fresh in your memory
Check if you have legal expenses insurance — often included in home insurance policies

Within 2 weeks:

Contact ACAS on 0300 123 1100 — get initial advice and understand your options
Consider whether to appeal — most employers have an internal appeal process; using it creates a paper trail
Start looking for new work — this helps with mitigation and your finances
Seek legal advice — many solicitors offer free initial consultations

If you're worried you might be dismissed

Keep records — emails, meeting notes, anything relevant to how you're being treated
Raise concerns formally — consider a grievance if you're being treated unfairly
Know your rights — understand what your employer can and can't do
Don't resign in haste — if you quit voluntarily, you generally can't claim unfair dismissal (unless it's constructive dismissal)
Get advice early — before things escalate

How Yerty Can Help

Yerty is a platform built for UK workers navigating employment disputes.

Yerty Platform

Our Unfair Dismissal Claims package includes:

Step-by-step guidance through the process — from initial assessment to tribunal
Document templates — grievance letters, appeal letters, witness statements
Checklists — so you don't miss critical steps or deadlines
Calculators — estimate your potential compensation, notice pay, redundancy entitlements
Timeline tracker — never miss a deadline

Whether you're exploring your options, preparing for ACAS conciliation, or considering a tribunal claim, we have tools for each stage.

Start here: app.yerty.co.uk/signup

Yerty AI

Have questions about your situation? Yerty AI can:

Answer employment law questions in plain English
Explain legal terms and processes
Help you understand what to expect at each stage
Point you to relevant guidance and templates

Important: Yerty provides information and tools, not legal advice. For advice specific to your circumstances, speak to a qualified employment solicitor.

Frequently Asked Questions

Do I need 2 years' service to claim unfair dismissal?

For "ordinary" unfair dismissal, yes — currently. But there are many exceptions where you can claim from day one, including dismissals related to pregnancy, whistleblowing, health and safety, discrimination, and asserting statutory rights. From January 2027, the qualifying period drops to 6 months.

What's the difference between unfair dismissal and wrongful dismissal?

Unfair dismissal is about whether your employer had a fair reason and followed a fair process. It's a statutory right (from the Employment Rights Act 1996) and usually requires 2 years' service.

Wrongful dismissal is about breach of contract — typically, being dismissed without proper notice. It has no qualifying period, but compensation is limited to what you lost during your notice period.

You can potentially claim both. For a full comparison, see: [Unfair Dismissal vs Wrongful Dismissal: What's the Difference?]

Can I claim if I resigned?

Only if you were constructively dismissed — meaning your employer's conduct was so serious that you had no real choice but to resign. This is difficult to prove. Get legal advice before resigning if you're considering this route.

How long do I have to make a claim?

3 months minus one day from your last day of employment. You must contact ACAS to start early conciliation within this time. From October 2026, this is expected to extend to 6 months — but the current deadline still applies.

How much compensation could I get?

It depends on your circumstances. The basic award is based on age, service, and weekly pay (max £21,570). The compensatory award covers your actual losses (max £118,223 or 52 weeks' pay). There's no cap for whistleblowing or discrimination-related dismissals.

Do I need a solicitor?

Not legally required — many people represent themselves at tribunal. But employment law is complex, and a solicitor can significantly improve your chances of success. Many offer "no win, no fee" arrangements for strong cases. At minimum, get initial advice before deciding your approach.

What if my employer says I was dismissed for poor performance but I disagree?

Your employer needs to prove they had a genuine belief in your poor performance, based on reasonable investigation, and that dismissal was within the range of reasonable responses. If they didn't give you proper warnings, support to improve, or a fair hearing, the dismissal may still be unfair even if there were some performance issues.

Will claiming affect my reference?

Employers shouldn't give unfair references in retaliation for tribunal claims — that could be victimisation. Many settlement agreements include agreed reference wording. Discuss this with your solicitor if you're concerned.

Sources

Legislation:

Employment Rights Act 1996: www.legislation.gov.uk/ukpga/1996/18/contents
Employment Rights Act 2025 (once published): www.legislation.gov.uk
Equality Act 2010: www.legislation.gov.uk/ukpga/2010/15/contents

Official guidance:

ACAS – Unfair dismissal: ACAS: Unfair Dismissal
ACAS – Early conciliation: www.acas.org.uk/early-conciliation
ACAS – Employment Rights Bill: www.acas.org.uk/employment-rights-bill
ACAS Code of Practice on disciplinary and grievance procedures: ACAS Code of Practice
Gov.uk – Dismissal: www.gov.uk/dismissal
Gov.uk – Employment tribunal statistics: www.gov.uk/government/statistics/tribunal-statistics-quarterly

Statutory rates (April 2025):

Weekly pay cap: £719
Maximum compensatory award: £118,223
Maximum basic award: £21,570