Understanding Unfair Dismissal: What Employees and Employers Need to Know

Losing your job is never easy, but when it feels unjust or unlawful, the experience can be even more stressful. That’s where the concept of unfair dismissal comes in.

I’ve been there too, so I understand just how tough it can be. If you’re dealing with the loss of a job under unfair circumstances, you’re not alone — I truly get it.

Whether you’re an employee wondering about your rights or an employer looking to avoid costly claims, understanding what counts as unfair dismissal — and how to handle it correctly — is essential.

What Is Unfair Dismissal?

In simple terms, unfair dismissal occurs when someone is dismissed by their employer in a way that is unreasonable, unlawful, or procedurally flawed.

This could be because:

  • There was no valid reason for the dismissal
  • The reason wasn’t serious enough to justify dismissal
  • The employer failed to follow a fair process

In the UK, employees usually need two years of continuous service before they can bring an unfair dismissal claim — though some dismissals, such as those involving discrimination, are automatically unfair regardless of length of service.

Fair Reasons for Dismissal

Employers can lawfully dismiss staff for reasons including:

  • Misconduct – e.g., serious breaches of company policy
  • Capability or performance – where an employee cannot meet role requirements
  • Redundancy – if the role itself genuinely no longer exists (not simply taken away or reshaped for someone else) and a fair consultation process has taken place
  • Statutory reasons – e.g., if the employee loses the right to work in the UK
  • Some other substantial reason – such as a complete breakdown in trust that makes the role unworkable

Even where a fair reason exists, the process followed must also be fair. Proper investigation, giving the employee a chance to respond, and following company or legal procedures are essential. A failure to do so could still amount to unfair dismissal.

Automatically Unfair Dismissals

Some dismissals are considered automatically unfair. These include cases where an employee is dismissed for:

  • Being pregnant or on maternity leave
  • Reporting health and safety concerns
  • Whistleblowing about wrongdoing
  • Taking family or parental leave
  • Requesting legal rights such as minimum wage or holiday pay

For these cases, the usual two-year service requirement does not apply.

Consequences for Employers

Unfair dismissal claims can be costly — not only financially but also in terms of reputation. If a tribunal finds in favour of the employee, the employer may have to pay compensation or even reinstate the employee.

Having clear workplace policies, consistent procedures, and proper legal guidance before taking any action can prevent disputes and minimise risk.

What Employees Should Do

If you believe you’ve been unfairly dismissed:

  • Request the reason in writing from your employer
  • Review your employment contract and company policies
  • Seek legal advice early — strict time limits apply for making tribunal claims (usually three months less one day from the date of dismissal)

Unfair dismissal law aims to protect the rights of both employees and employers. Employers can avoid disputes by following fair and transparent processes, while employees benefit from knowing their rights and acting promptly if something feels wrong.

More Detail Coming Soon

Over the coming weeks, I’ll be sharing further insights on Redundancy, Whistleblowing, and Discrimination — exploring employees’ rights, employers’ obligations, and best practices for handling these sensitive situations fairly and legally. Stay tuned for a deeper look into these important topics.

Get in Touch

If you need advice on unfair dismissal — whether you’re an employer planning to terminate employment or an employee facing dismissal — professional legal guidance can help save time, money, and unnecessary stress.

Get in touch at www.gracelegal.net or DM me at @grace.legal2025 or contact me via info@gracelegal.net.