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Unfair dismissal is one of the most litigated employment law claims in the UK. Ordinary unfair dismissal requires 2 years' continuous service to bring a claim, but automatic unfair dismissal (e.g. for pregnancy, whistleblowing, health & safety concerns) has no qualifying period. Employment tribunal claims must be filed within 3 months of dismissal, with mandatory ACAS Early Conciliation first. This guide covers the fair reasons for dismissal, the fair process employers must follow, automatic unfair grounds + compensation caps for 2026/27.
Checked against the 2 sources listed below · Last reviewed 14 June 2026
Employer must establish:
1. Fair reason — capability, conduct, redundancy, statutory illegality, or 'some other substantial reason'
2. Fair process — investigation, hearing, right of appeal, warnings where appropriate
Fair dismissal reasons (Employment Rights Act 1996 s98)
Capability: incompetence, poor performance, ill health
Conduct: misconduct or gross misconduct
Redundancy: role no longer needed
Statutory bar: driver losing licence, etc.
Some other substantial reason (SOSR): business reorganisation, breakdown of trust
Fair process
Full investigation
Formal hearing with right to be accompanied
Reasonable time to prepare + respond
Right of appeal
ACAS Code of Practice on Disciplinary + Grievance Procedures followed
Automatic unfair dismissal (day 1 rights)
No qualifying period needed if dismissal for:
- Pregnancy or maternity leave
- Trade union activities
- Health + safety concerns raised
- Whistleblowing (protected disclosure)
- Asserting statutory right (e.g. NMW claim)
- Discrimination grounds (age, sex, race, disability, sexual orientation, religion)
Compensation (2026/27 caps)
Basic award (like redundancy):
- Age × weeks × week's pay (£700/week cap in 2026)
- Max: 30 weeks × cap = £21,000
Compensatory award:
- Loss of earnings + future losses
- Cap: £115,115 or 52 weeks' pay (lower)
- No cap for discrimination or whistleblowing
Route to claim
ACAS Early Conciliation (mandatory)
Employment tribunal ET1 within 3 months less 1 day
UK monthly budget planner — A workable UK monthly budget planner: confirm your real net pay, list fixed essentials, list variable essentials, set a discretionary cap, set a savings target. Total must equal net pay. Use 50/30/20 as a starting guide, adapt for your housing situation.
More on related topics
Constructive dismissal — Constructive dismissal = resign due to employer's fundamental breach. Must resign promptly. Same claim as unfair dismissal.
Notice periods — UK notice = greater of statutory (1 week + 1/year up to 12) or contractual. PILON + garden leave options.
Redundancy consultation — Individual consultation always required. Collective: 30 days (20-99), 45 days (100+). HR1 to Redundancy Payments Service.
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Last reviewed: 14 June 2026.
Next review due 14 December 2026.
Disclaimer: This page provides general information based on published HMRC and gov.scot figures. It is not personal tax or financial advice. For your specific situation, please consult a qualified accountant or contact HMRC directly.