VocabuLaw

Unfair Dismissal

What is it and what does it mean?

Description of the legal term Unfair Dismissal:

Unfair dismissal is a fundamental aspect of UK employment law which provides a framework for employees to challenge the legality of their dismissal from work. Under the Employment Rights Act 1996, an employee has the right not to be unfairly dismissed from their employment. To qualify for this protection, an employee must generally have worked for their employer for a minimum period, which is currently two continuous years.

The concept of unfair dismissal is designed to ensure that employers have fair and valid reasons for terminating an employee’s contract. The reasons for dismissal that are recognised as potentially fair include capability or qualifications, conduct, redundancy, statutory illegality or prohibition, and some other substantial reason. If an employer dismisses an employee for any of these reasons, they must also follow a fair procedure.

In determining whether a dismissal was fair or not, tribunals take into account whether the employer acted reasonably in treating the principal reason as a sufficient reason for dismissing the employee. This includes considering the size and administrative resources of the employer’s business and whether the employer followed a fair process, such as issuing warnings and conducting an investigation.

An employee who believes they have been the victim of an unfair dismissal must first go through the Acas (Advisory, Conciliation and Arbitration Service) Early Conciliation process before bringing a claim to an employment tribunal. If the claim is successful, remedies can include reinstatement, reengagement, or compensation.

Critically, if an employer has failed to follow the Acas Code of Practice on disciplinary and grievance procedures, any compensation awarded can be adjusted by up to 25%. On the other hand, if an employee fails to follow the Code, their compensation can be reduced by the same percentage.

Legal context in which the term Unfair Dismissal may be used:

One illustrative example involves an employee, John, who has been working as a sales manager for five years. John’s performance has been satisfactory until a new reporting system is introduced. John struggles to adapt, and his performance declines. Despite this, John’s employer immediately dismisses him without prior warning or an opportunity to improve. John could argue that he has been the subject of an unfair dismissal as the employer did not give him a fair chance to meet the new standards and did not follow a fair process in line with the Acas Code of Practice.

Another example might involve an employee, Sarah, who is dismissed for her conduct after an isolated incident where she was rude to a customer. Sarah has had a pristine employment record for ten years and the incident occurred during a highly stressful period personally. If the employer dismissed Sarah without considering her long service, mitigation circumstances, or the option of any other disciplinary action short of dismissal, this might also constitute an unfair dismissal. Sarah would be advised to undergo the Early Conciliation process with Acas and possibly file a claim to an employment tribunal to assess the fairness of her dismissal.

The protection against unfair dismissal is one of the cornerstones of employment rights in the UK, aimed at balancing the power dynamic between employers and employees and ensuring a fair and just working environment. It helps prevent arbitrary and unjust treatment in the workplace, thus fostering greater job security and productivity, as well as contributing to a fairer society. This legal framework not only offers remedial action to those subjected to unjust termination of employment but also serves as a deterrent to employers against dismissing staff without good cause and due process.

This website is for informational purposes only and may contain inaccuracies. It should not be used as a substitute for professional legal advice.