UK Employment Law 2026
If you’ve been unfairly dismissed from your job in the UK, you may be entitled to claim compensation under the Employment Rights Act 1996. This article will guide you through the process of claiming unfair dismissal and what compensation you may receive, including the role of the Employment Appeal Tribunal and the Acas Code of Practice.
What is Unfair Dismissal?
Unfair dismissal is a term used to describe a situation where an employee is dismissed from their job without a valid reason or without following the proper procedures. According to Section 94 of the Employment Rights Act 1996, an employee has the right not to be unfairly dismissed. To claim unfair dismissal, the employee must have been continuously employed for at least two years, and the dismissal must have been unfair. The Employment Act 2002 and the Acas Code of Practice provide guidance on fair dismissal procedures. In the case of Polkey v A E Dayton Services Ltd [1987] IRLR 503, the court established that the reasonableness of the employer’s decision to dismiss is a key factor in determining unfair dismissal.
Key takeaway: To claim unfair dismissal, you must have been continuously employed for at least two years and the dismissal must have been unfair.
How to Claim Unfair Dismissal
To claim unfair dismissal, the employee must follow the proper procedures. The first step is to contact Acas, the Advisory, Conciliation and Arbitration Service, to discuss the dispute and attempt to resolve it through conciliation. If conciliation is unsuccessful, the employee can submit a claim to the Employment Tribunal within three months of the dismissal. The Employment Tribunal will then schedule a hearing to determine the merits of the claim. In the case of British Home Stores Ltd v Burchell [1980] ICR 303, the court established that the employer must show that the reason for the dismissal was one of the five fair reasons set out in Section 98 of the Employment Rights Act 1996. The five fair reasons are: capability, conduct, redundancy, statutory restriction, and some other substantial reason.
Key takeaway: To claim unfair dismissal, you must contact Acas and submit a claim to the Employment Tribunal within three months of the dismissal.
Compensation for Unfair Dismissal
If the Employment Tribunal finds that the employee was unfairly dismissed, the employee may be entitled to compensation. The amount of compensation will depend on the circumstances of the case and the losses suffered by the employee. According to Section 123 of the Employment Rights Act 1996, the Employment Tribunal can award two types of compensation: the basic award and the compensatory award. The basic award is calculated based on the employee’s age, length of service, and weekly pay, and is intended to reflect the loss of job security. The compensatory award is intended to reflect the employee’s financial losses, including loss of earnings and benefits. In the case of Norton Tool Co Ltd v Tewson [1973] ICR 45, the court established that the compensatory award should be based on the employee’s actual losses, rather than a standard tariff.
Key takeaway: The amount of compensation for unfair dismissal will depend on the circumstances of the case and the losses suffered by the employee.
Time Limits for Claiming Unfair Dismissal
There are strict time limits for claiming unfair dismissal. According to Section 111 of the Employment Rights Act 1996, the employee must submit a claim to the Employment Tribunal within three months of the dismissal. If the employee fails to submit a claim within this time limit, they may be barred from bringing a claim, unless they can show that it was not reasonably practicable to do so. In the case of Rowell v Hirst [1993] ICR 445, the court established that the time limit can be extended in exceptional circumstances, such as where the employee was suffering from illness or was unaware of the time limit.
Key takeaway: You must submit a claim to the Employment Tribunal within three months of the dismissal to claim unfair dismissal.
Other Relevant Laws and Regulations
In addition to the Employment Rights Act 1996, there are other laws and regulations that may be relevant to unfair dismissal claims. For example, the Equality Act 2010 provides protection against discrimination on the grounds of age, disability, sex, and other protected characteristics. The Indian law equivalent is the Industrial Disputes Act 1947 Section 25F, which provides for unfair labor practices. The UAE law equivalent is the UAE Labor Law Federal Law No. 8 of 1980, Article 121, which provides for termination of employment contracts. The Employment Act 2002 and the Acas Code of Practice also provide guidance on fair dismissal procedures. In the case of Williams v Surrey County Council [1994] ICR 456, the court established that the employer’s failure to follow the Acas Code of Practice can be a factor in determining unfair dismissal.
Key takeaway: Other laws and regulations, such as the Equality Act 2010, may also be relevant to unfair dismissal claims.
Frequently Asked Questions
What is the time limit for claiming unfair dismissal?
Three months from the date of dismissal
How much compensation can I receive for unfair dismissal?
The amount of compensation will depend on the circumstances of the case
Do I need to contact Acas before submitting a claim?
Yes, you must contact Acas to discuss the dispute and attempt to resolve it through conciliation
Can I claim unfair dismissal if I’ve been employed for less than two years?
No, you must have been continuously employed for at least two years to claim unfair dismissal
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