Unfair Dismissal
Ending an employment relationship can be challenging, especially if tensions are high or trust has broken down. If not handled properly, the process can result in expensive legal disputes, damage to your reputation, and a negative impact on team morale.
At Baker Ashley, our experienced employment team offers clear, practical advice to help you manage dismissals and workplace investigations in a fair and professional way. Our goal is to minimise the risk of claims such as unfair dismissal, while ensuring the process is handled with respect for all parties.
We can support you with:
Managing poor performance issues
Absence-related dismissals
Redundancy processes
Disciplinary procedures and investigations
TUPE transfers
Changes to terms and conditions, including dismissal and re-engagement (“fire and rehire”)
Collective consultation requirements
For more details about our investigation services, please refer to our brochure.
What Is an Unfair Dismissal?
Unfair dismissal is when an employer ends an employee’s contract without a valid legal reason or without following a fair and reasonable process.
Under the Employment Rights Act 1996, employees normally need two years’ continuous service to claim unfair dismissal, but some cases have no minimum service requirement — for example, if the dismissal is automatically unfair because the employee was:
Whistleblowing
Exercising a legal workplace right
Being dismissed for reasons linked to discrimination or certain family-related leave
For a dismissal to be lawful, the employer must show both:
The dismissal was for a fair reason, and
The decision was reasonable compared to what another fair-minded employer might have done.
Fair reasons under UK law include:
Capability or qualifications (e.g. poor performance, lacking required skills)
Misconduct (e.g. breaching workplace rules)
Redundancy (role no longer needed)
Legal requirement (e.g. continuing employment would break the law)
Some other substantial reason (e.g. irreconcilable workplace conflict, refusal of reasonable contractual changes)
Even with a fair reason, the correct procedure must be followed:
Redundancy — fair consultation and selection process
Misconduct/performance issues — comply with the ACAS Code of Practice: proper investigation, clear evidence, warnings (where appropriate), and the right to be accompanied in meetings
If an employment tribunal finds the dismissal was unfair, it can order the employer to:
Reinstate the employee (same job)
Re-engage them (different role)
Pay compensation
Compensation for Unfair Dismissal Claims
Our solicitors have the expert knowledge and skills needed to provide high quality advice and assistance with tribunal claims. With substantial experience of successfully representing clients at tribunal hearings, we’re perfectly positioned to provide you with strategies that deliver the right result for you.
This service is provided on a fixed fee basis, with all of the costs clearly explained at the start.
1. Basic Award
This is a fixed calculation based on your age, length of continuous service (up to 20 years), and your weekly pay at the time you were dismissed. The rules are:
1.5 weeks’ pay for each year worked after turning 41
1 week’s pay for each year worked between ages 22 and 40
0.5 week’s pay for each year worked under age 22
Your weekly pay is based on your normal gross weekly wage at dismissal, but it’s capped at a legal maximum. For example, for dismissals between 6 April 2024 and 5 April 2025, the cap is £700 per week.
This calculation is the same as for statutory redundancy pay. If you’ve already received a redundancy payment, the tribunal will deduct it from your basic award.
2. Compensatory Award
On top of the basic award, the tribunal can give you compensation for the actual financial loss caused by your dismissal. This is based on what the tribunal thinks is fair and reasonable, and it’s your responsibility to try to reduce your losses (for example, by looking for another job).
For unfair dismissal cases, the compensatory award is capped at the lower of:
One year’s gross salary, or
The statutory limit (£115,115 for dismissals between 6 April 2025 and 5 April 2026)
The cap doesn’t apply in certain cases of automatic unfair dismissal, such as whistleblowing or asserting a statutory right.
You can claim for:
Lost wages
Lost pension, bonuses, and other benefits
Loss of statutory rights (usually around £350)
If you find another job before the hearing, the tribunal will take that into account and may set a cut-off point for your compensation.
3. Reductions to Awards
The tribunal can reduce both the basic and compensatory awards if:
Your own conduct contributed to your dismissal
Your employer can prove they would have dismissed you anyway, even if they had followed the correct process (Polkey reduction)
4. Constructive Dismissal
You don’t have to be directly fired to claim unfair dismissal. You can also claim if you resign because your employer seriously breached your contract, for example, by changing your role without agreement or failing to pay you. This is called constructive dismissal. You must resign in response to the breach and not wait too long before doing so.
Contact Us
If you have questions about unfair dismissal, redundancy, or employment rights, we’re here to help. Either call us on 01443 716242 or submit a lead form submission.
