What is unfair dismissal?

This guidance applies to Great Britain unless stated otherwise. Unfair dismissal is a statutory right under the Employment Rights Act 1996. A dismissal is unfair if the employer cannot show a potentially fair reason for it, or if — even where there is a potentially fair reason — the decision to dismiss or the procedure followed was not within the range of reasonable responses open to a reasonable employer. The five potentially fair reasons for dismissal are: capability or qualifications (including ill health), conduct, redundancy, a statutory restriction (where continued employment would break the law), and some other substantial reason (SOSR). Even if one of these reasons exists, the employer must follow a fair procedure, which typically means carrying out a reasonable investigation, holding a disciplinary hearing, giving the employee the right to be accompanied, and considering alternatives to dismissal where appropriate. If the employment tribunal finds the dismissal was unfair, it can order reinstatement, re-engagement, or compensation. The basic award is calculated in the same way as a statutory redundancy payment, and the compensatory award can be up to a statutory cap (£123,543 as of April 2026, or 52 weeks' gross pay if lower). To bring a claim, the employee must have at least two years of continuous employment, must have contacted ACAS for early conciliation, and must present the claim within three months less a day of the effective date of termination. This information is general guidance only and does not constitute legal advice.