Unfair dismissal: your rights, the deadlines and the 2027 changes

Losing your job is stressful, and the rules about when a dismissal is unfair can seem technical. This guide explains the main principles for employees in England and Wales, including two important changes made by the Employment Rights Act 2025. It is general information, not advice on your situation, and employment deadlines are short, so act quickly if you think you have a claim.

Who can claim unfair dismissal?

The right not to be unfairly dismissed is set out in Part 10 of the Employment Rights Act 1996 (opens in a new tab). It belongs to employees. People who are genuinely self-employed, and many people classed as "workers" rather than employees, do not have this particular right, although they may have other protections, such as protection from discrimination.

The qualifying period

For "ordinary" unfair dismissal, an employee currently needs two years' continuous employment with the employer. This is changing. The Employment Rights Act 2025 (opens in a new tab) reduces the qualifying period from two years to six months. The government has confirmed that the change applies to dismissals with an effective date of termination on or after 1 January 2027. For dismissals that take effect before that date, the two-year rule still applies. The government's unfair dismissal page on business.gov.uk (opens in a new tab) explains the transition.

Automatically unfair dismissal

Some reasons for dismissal are "automatically unfair", and for most of them there is no qualifying period at all. Examples listed on GOV.UK's dismissal guidance (opens in a new tab) include dismissal because of:

• pregnancy or maternity, paternity, adoption or shared parental leave
• making a protected disclosure (whistleblowing)
• trade union membership or activities
• asserting a statutory right, such as asking for the minimum wage or holiday pay
• certain health and safety activities

Separately, dismissal because of a protected characteristic, such as race, sex, disability or age, may be discrimination under the Equality Act 2010, which protects workers and employees from day one.

What makes a dismissal fair?

Under section 98 of the Employment Rights Act 1996, an employer must show that the main reason for the dismissal was one of five potentially fair reasons:

• capability or qualifications, such as poor performance or long-term ill health
• conduct, such as misconduct or gross misconduct
• redundancy, where the need for employees to do work of a particular kind has ceased or reduced
• a statutory restriction, where continuing to employ the person would break the law (for example, a driver who loses their licence)
• some other substantial reason that justifies dismissal

Having a fair reason is not enough. The employment tribunal also asks whether the employer acted reasonably in treating that reason as sufficient to dismiss, taking into account the size and resources of the business. In practice, tribunals look closely at the procedure: whether there was a fair investigation, whether the employee knew the case against them, whether they had a chance to respond at a meeting and whether they were offered an appeal.

The Acas Code of Practice

The Acas Code of Practice on disciplinary and grievance procedures (opens in a new tab) sets out the basic steps employers and employees are expected to follow. It is not law in itself, but tribunals must take it into account. If either side unreasonably fails to follow it, the tribunal can increase or reduce compensation by up to 25%.

Constructive dismissal

Sometimes an employee resigns because the employer has seriously breached their contract, for example by cutting pay without agreement or by serious bullying that the employer fails to deal with. This can be treated as a dismissal, known as constructive dismissal. These claims can be difficult to prove, and timing matters: an employee who waits too long before resigning may be treated as having accepted the breach. It is usually wise to get advice before resigning.

Written reasons for dismissal

An employee with the required length of service can ask for a written statement of the reasons for their dismissal, and the employer must provide it within 14 days. The qualifying period for this right is also being reduced from two years to six months from 1 January 2027. Employees dismissed while pregnant or during maternity or adoption leave are entitled to written reasons without asking.

Step one: Acas early conciliation

Before you can make most employment tribunal claims, you must notify Acas and go through early conciliation (opens in a new tab). This is free. An Acas conciliator will contact both sides to see if the dispute can be settled without a hearing. If it is not settled, or either side does not want to take part, Acas issues an early conciliation certificate with a number you need to start your tribunal claim.

Time limits: the October 2026 change

Tribunal deadlines are strict. According to GOV.UK's employment tribunal guidance (opens in a new tab), you usually have:

• 6 months if the problem happened on or after 1 October 2026
• 3 months if the problem happened before 1 October 2026

For unfair dismissal, the period begins from the date your employment ended. The change was made by section 152 of the Employment Rights Act 2025 (opens in a new tab). The clock is paused while Acas early conciliation is taking place, but the rules for calculating the exact deadline are technical. Contact Acas as early as you can and do not leave things until the last few days. A tribunal only allows late unfair dismissal claims in limited circumstances.

What can a tribunal award?

If a tribunal finds the dismissal unfair, it can order reinstatement (getting your old job back), re-engagement (a comparable job) or, much more commonly, compensation. Compensation is normally made up of:

• a basic award, calculated using your age, length of service and weekly pay, subject to a statutory weekly pay limit
• a compensatory award, for the financial losses caused by the dismissal, such as lost earnings, which you are expected to reduce by looking for new work

At present the compensatory award is capped. The government's unfair dismissal factsheet (opens in a new tab) says the cap is due to be removed for dismissals from 1 January 2027. Discrimination and whistleblowing awards are not subject to the cap.

Settlement agreements

Many disputes end with a settlement agreement, where the employee agrees not to bring claims in return for a payment. For a settlement agreement to be legally binding on statutory employment claims, the employee must receive advice from a relevant independent adviser, such as a qualified lawyer, on its terms and effect. Employers often contribute to the cost of that advice, but this is a matter of negotiation.

Practical steps if you have been dismissed

• Ask for, and keep, the dismissal letter and any written reasons.
• Gather your contract, handbook, payslips, emails and notes of meetings.
• Write down a timeline of what happened while it is fresh.
• Use any internal appeal, but do not let it delay your Acas notification.
• Diarise your tribunal deadline and contact Acas early.

Where to get help

The Acas helpline and website (opens in a new tab) give free, impartial information to employees and employers. Citizens Advice, trade unions and some law centres can also help. To find a solicitor, search the Law Society's Find a Solicitor (opens in a new tab) and check any firm on the SRA register (opens in a new tab). Our free legal help page lists free options.

Sources

1. Part 10 of the Employment Rights Act 1996 (opens in a new tab) (legislation.gov.uk)
2. Employment Rights Act 2025 (opens in a new tab) (legislation.gov.uk)
3. unfair dismissal page on business.gov.uk (opens in a new tab) (business.gov.uk)
4. GOV.UK's dismissal guidance (opens in a new tab) (gov.uk)
5. Acas Code of Practice on disciplinary and grievance procedures (opens in a new tab) (acas.org.uk)
6. early conciliation (opens in a new tab) (acas.org.uk)
7. GOV.UK's employment tribunal guidance (opens in a new tab) (gov.uk)
8. section 152 of the Employment Rights Act 2025 (opens in a new tab) (legislation.gov.uk)
9. unfair dismissal factsheet (opens in a new tab) (assets.publishing.service.gov.uk)
10. Acas helpline and website (opens in a new tab) (acas.org.uk)
11. Law Society's Find a Solicitor (opens in a new tab) (solicitors.lawsociety.org.uk)
12. SRA register (opens in a new tab) (sra.org.uk)

Sources checked for the update dated 15 October 2026. Spotted an error? Tell us and read how we handle corrections.