Definition
A dismissal that an employment tribunal finds was carried out without a fair reason or without following a fair procedure. Employees with at least two years of continuous service have the right not to be unfairly dismissed.
UK Context
The Employment Rights Act 1996 sets out five potentially fair reasons for dismissal: capability, conduct, redundancy, statutory restriction, and some other substantial reason. Even with a fair reason, the employer must follow a fair procedure, including investigation and the right to appeal.
Best Practices
- Ensure every dismissal is supported by one of the five fair reasons and is procedurally fair
- Follow the ACAS Code of Practice on Disciplinary and Grievance Procedures before dismissing
- Document the decision-making process thoroughly, including alternatives considered
Frequently Asked Questions
What are the fair reasons for dismissal?
The five potentially fair reasons are: capability or qualifications, conduct, redundancy, a statutory restriction such as losing a driving licence needed for the job, and some other substantial reason. The employer must also act reasonably in treating the reason as sufficient.
Can employees with less than two years' service claim unfair dismissal?
Generally no, but there are exceptions. Employees can claim from day one if the dismissal relates to automatically unfair reasons such as pregnancy, whistleblowing, trade union activity, or asserting a statutory right.