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  • Unfair Dismissal Advice Guide

Unfair Dismissal Advice Guide

If you’ve been unfairly dismissed, you might be feeling powerless, or uncertain about whether you can make a claim. Our lawyers have put together this guide to help you understand whether you have an unfair dismissal claim, and how much compensation you might be entitled to.

In this guide:

  • What is unfair dismissal?
  • What are grounds for fair dismissal?
  • What automatically constitutes unfair dismissal?
  • Can you claim unfair dismissal with under two years’ service?
  • What should you do if you think you’ve been unfairly dismissed?
  • What’s the time limit for claiming unfair dismissal?
  • What happens if you win your case?
  • How much compensation will you get?
  • What if my employer doesn’t pay my compensation?

If you’d like to speak to one of our experienced team about unfair dismissal, please call us on 0207 650 3999.

What Is Unfair Dismissal?

Your employer can only dismiss you for a fair reason, and after following a fair process. For your dismissal to be considered unfair, you need to be able to prove one of the following:

  • You were dismissed for an automatically unfair reason
  • Your employer had no fair reason for the dismissal
  • The process to dismiss you was unfair
  • No reasonable employer would have dismissed you under the circumstances.

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What Are Grounds For Fair Dismissal?

Your employer can only dismiss you for one of the following five reasons:

  1. Your conduct
    This covers any type of misconduct – whether a one-off event, or a series of minor incidents. You could be dismissed for misconduct whether or not the incident was at work.
  2. Your capability
    This could be due to poor performance or attitude. It could also be due to ill health.
  3. Redundancy
    If the business closes down, your place of work closes, or there’s a reduced need for a particular role.
  4. To carry on employing you would break the law
    This could be if you’re disqualified for driving, but your job requires you to drive. It also applies if your permit to work in the UK has expired.
  5. Some other substantial reason
    There are other fair reasons that an employer can dismiss you. Examples might be a business reorganisation, or where there are changes to your employment contract that you can’t or will not accept.

Even if your employer has a fair reason for your dismissal, you might still have a claim. Your employer must be able to show that their decision is reasonable, and that they followed a fair process too.

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What Automatically Constitutes Unfair Dismissal?

There are some reasons for dismissal that are automatically considered unfair. These are:

  • You’ve been dismissed because you’re pregnant
  • You’ve “asserted a statutory right” such as taking maternity or paternity leave
  • You were dismissed because you belong to a trade union
  • Whistleblowing.

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Can You Claim For Unfair Dismissal With Under Two Years’ Service?

Normally you need to have worked for your employer, as an employee, for at least two years’ continuous service.

However, if you’re claiming unfair dismissal based on an automatically unfair reason, then it usually doesn’t matter how long you’ve worked for your employer.

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What Should You Do If You Think You’ve Been Unfairly Dismissed?

It’s important to act quickly if you think you’ve been unfairly dismissed. The time limits for claiming are short.

You should get legal advice as soon as you’re able. It’s possible your employer may ask you to sign a settlement agreement, to protect it against an unfair dismissal claim. If they do this, it’s a legal requirement that you receive legal advice on the terms and effect of the agreement. Your employer will usually contribute towards your legal fees.

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What’s The Time Limit For Claiming Unfair Dismissal?

You must start your unfair dismissal claim within three months less one day from the date your employment was terminated.

For example, if your employment ended on 3 October, then you must start your claim by 2 January.

You must contact ACAS to go through its Early Conciliation process before you can make a claim through the Employment Tribunal. Again you must do this within three months, less one day from the date your employment ended.

ACAS Early Conciliation is an attempt to settle your unfair dismissal claim without it needing to go to the Tribunal. You don’t need to communicate with your employer directly through this process, as ACAS will act as a go between.

While the ACAS process is going on, the time limit for making a claim through the Tribunal is paused.

If ACAS Early Conciliation is unsuccessful, then you will be issued with a certificate. This will then allow you to claim through the Employment Tribunal. Generally you’ll have at least a month to make your unfair dismissal claim once you get your certificate.

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What Happens If You Win An Unfair Dismissal Case?

If your claim is successful, you have three options which you choose at the start of your claim:

  • Reinstatement
    You go back to work for your employer, in the same job you had before.
  • Re-engagement
    You go back to work for your employer, but in another job or area of the company.
  • Compensation
    Read more about how compensation is calculated.

In reality it’s rare for people to choose reinstatement or re-engagement with an employer after a claim of unfair dismissal. However, it does happen – for example in cases where there is an issue with a particular line manager, rather than the company itself.

If the Tribunal determines that you should be reinstated or re-engaged by your employer, you would still normally be paid some compensation.

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How Much Compensation Will You Get?

Your compensation is made up of one or more of the following elements:

  • Basic award
  • Compensatory award
  • Additional award (you get this if you choose to return to work for your employer and they don’t let you).

There are normally limits for the amount of compensation you could receive in an unfair dismissal case. However, there are some cases where there’s no cap on the compensation. This is usually where the claim also involves:

  • Discrimination
  • Whistleblowing
  • Asserting a statutory right (such as taking maternity or paternity leave).

Basic Award

The maximum award for this element of compensation is currently £16,320 (from 6 April 2021).

Compensation is calculated working backwards from the last day of employment.

These figures are based on your age at the start of the year you were dismissed. The award is paid for each year of service, up to a maximum of 20 years’ service.

Age at start of year Award for every year of service (max 20 years)
41 or over 1.5 week's pay
22-40 1 weeks' pay
Under 22 0.5 weeks' pay

Compensatory Award

The maximum award for this element of compensation is currently £89,493 (from 6 April 2021). The amount you receive will be based on your particular case – in reality most awards are much lower than the maximum.

The calculation of the compensatory award is based on the following considerations:

  • Immediate loss of wages
    Between dismissal until the date compensation is awarded.
  • Future loss of wages
    Based on how long it might take you to find another job, or reach your previous level of earnings.
  • Loss of statutory employment rights
    Many rights, such as notice period or redundancy pay, are linked to how long you’ve worked at a company. So even if you’ve found a new job, you could still be worse off.
  • Deductions
    The award could be reduced for a number of reasons. These include if you contributed to your dismissal, or would have still been dismissed if a proper process had been followed. Your award could also be reduced if your employer paid enhanced redundancy or termination payments. If you have not made proper efforts to look for a new job, this could affect the payment too.

Additional Award

If you choose to go back to work for your employer but they refuse, then you may get an additional award. This is usually between 26 and 52 weeks’ pay.

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What If My Employer Doesn’t Pay My Compensation?

If your employer can’t or won’t pay your compensation, it can be enforced through the County Court.

This doesn’t mean that you will need to re-fight your case.

The County Court will normally enforce compensation awards by making a:

  • Judgment in default
    Where a judgment is made if your employer doesn’t provide a defence within 14 days.
  • Summary judgment
    Where the Court does not allow your employer a defence and makes a judgment on your case.

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Contact Us

Call us today on 0207 650 3999 and find out how our employment team can help with your unfair dismissal claim.

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