Unfair dismissal: your rights in 2026

What is unfair dismissal?

The right not to be unfairly dismissed is contained in Section 94 of the Employment Rights Act 1996 (ERA 1996). A dismissal is unfair if your employer either:

• Had no valid reason to dismiss you (the reason was not one of the five potentially fair reasons), or
• Had a potentially fair reason but acted unreasonably in the circumstances — for example, by failing to follow a fair procedure, not investigating properly, or jumping straight to dismissal for a first minor offence.

An Employment Tribunal applies a broad band of reasonable responses test — it does not ask what it would have done, but whether the employer's decision fell within the range that a reasonable employer might have reached. Procedure matters enormously: a dismissal that might have been fair on the facts can be found unfair because the employer did not follow the ACAS Code.

The five potentially fair reasons for dismissal

• Capability: Includes poor performance and ill health. The employer must have a genuine performance or health concern and must have followed a fair process (support, warnings, review periods) before dismissing.
• Conduct: The most common reason for dismissal. Covers misconduct (e.g. theft, fighting, dishonesty) and serious procedural breaches. Gross misconduct may justify summary dismissal without notice, but a fair investigation and hearing are still required.
• Redundancy: A genuine reduction in the requirement for employees to do a particular kind of work. The employer must use a fair selection method and consult affected employees.
• Statutory illegality: Continuing the employment would contravene a statutory requirement — for example, a driver who permanently loses their licence.
• Some other substantial reason (SOSR): A catch-all for substantial business reasons not covered above — e.g. a fundamental breakdown in the working relationship, a client insisting on removal, or refusal to accept a reasonable business reorganisation.

Qualifying period and who is protected

You need 2 years of continuous service with the same employer to bring a general unfair dismissal claim. The 2-year period begins from the start of employment and runs to the effective date of termination (EDT) — usually the last day you work, or the end of your notice period.

There is no qualifying period for automatically unfair dismissal (see below). Day-one rights apply from the very start of employment.

Automatically unfair dismissal — no qualifying period

Some reasons for dismissal are automatically unfair regardless of how long you have worked. These include:

• Pregnancy, maternity leave, paternity leave, adoption leave, or shared parental leave
• Making a protected disclosure (whistleblowing) under the Public Interest Disclosure Act 1998
• Asserting a statutory right — e.g. claiming National Minimum Wage, taking rest breaks, requesting a written statement of terms
• Trade union membership, activities, or collective bargaining
• Jury service or participation in legal proceedings
• Health and safety concerns — e.g. refusing to work in dangerous conditions or raising a genuine safety concern
• Part-time or fixed-term worker status
• Flexible working requests (since 6 April 2024 — day-one right)
• TUPE transfer (dismissal connected to a transfer of the business)

Fair procedure — the ACAS Code

Even when a fair reason exists, a dismissal can be found unfair if the employer did not follow a fair procedure. The ACAS Code of Practice on Disciplinary and Grievance Procedures sets the minimum standard:

1. Investigate the allegation thoroughly before taking any action
2. Inform the employee in writing of the specific concerns
3. Hold a disciplinary meeting — the employee has the right to be accompanied (by a trade union rep or colleague)
4. Issue warnings at the appropriate level (informal → first written → final written → dismissal)
5. Offer the right of appeal against any disciplinary decision

Tribunals can uplift the compensatory award by up to 25% if the employer unreasonably failed to follow the Code, and can reduce it by up to 25% if the employee contributed to their own dismissal (e.g. by committing genuine misconduct).

Compensation — 2026/27 figures

Note: the compensatory award cap does not apply to automatically unfair dismissal claims for whistleblowing or trade union activities — those awards are uncapped.

How to bring a claim — step by step

1. Check your EDT: Your effective date of termination is usually your last day of work or the end of your notice period. The 3-month clock starts from this date.
2. Contact ACAS for early conciliation: Submit an early conciliation notification at acas.org.uk — this is mandatory before you can file a tribunal claim. ACAS will attempt to mediate a settlement. If unsuccessful, they issue a Certificate which you need to file your claim.
3. File your ET1: Submit your ET1 claim form at employment-tribunals-service.hmcts.gov.uk within the time limit (extended by the conciliation period). The form asks for your EDT, the reason for dismissal, and the remedy you seek.
4. Gather evidence: Collect your contract, the dismissal letter, any written warnings, emails, meeting notes, and records of your earnings and benefits. A schedule of loss calculating your financial claim will be needed at the hearing.
5. Consider settlement: Most ET claims settle before hearing. Your employer may make a settlement offer through ACAS conciliation at any stage. Weigh any offer against your likely award and the cost and uncertainty of the hearing.