Unfair dismissal

Where there is no fair reason for dismissal, there may be a statutory claim for unfair dismissal. Potentially fair reasons for dismissal include capability, misconduct or redundancy.

What is unfair dismissal?

Employees who have been employed for one year or more have a right not to be unfairly dismissed. In order to dismiss fairly, an employer must:

have a fair reason for dismissal; and
the dismissal must follow proper procedures and be fair in all the circumstances.

Potentially fair reasons for dismissal are:

capability;
conduct;
redundancy;
where continuing to work would contravene an enactment; and
some other substantial reason.

Once it is established that the dismissal falls within one of those potentially fair reasons, it is necessary to consider the fairness of the dismissal in the circumstances. Amongst other things, this will involve an assessment of:

for misconduct dismissals, whether a reasonable investigation was conducted;
for poor performance dismissals, whether the employee was warned as to their performance and given an opportunity to improve; and
for redundancies, whether the employee was warned and consulted, whether there was an objective and fair selection process and whether alternative employment was considered.

Unlike claims for breach of contract, there is a maximum potential value for a successful claim of unfair dismissal. This is currently capped at a maximum of £56,800. It may therefore be that such a claim would form one element of a compensation package based on a number of claims, also including breach of contract. Our team of specialist solicitors will advise on the merits and value of each element of the claim.

For further information on unfair dismissal, please download a copy of our Executive Dismissal factsheet.