Unfair Constructive & Wrongful Dismissal

We provide expert guidance on unfair-constructive & Wrongful dismissal, the legal options available and represent clients in negotiations and tribunal proceedings. Whether you are an employer facing an unfair dismissal claim or an employee seeking to challenge being dismissed, we are here to provide you with the legal advice, support and representation you need.

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Unfair Dismissal

Any potential claim for unfair dismissal starts with a dismissal where the employer is the one who has brought the contract of employment to an end. A claim could arise if the reason was unfair, not enough to justify the dismissal, or where the employer did not follow a fair procedure.

 

The employee must have been working for the employer for a minimum of two years (set to change to 6 months from January 2027). However, this does not apply where they are dismissed due to an automatically unfair reason, as discussed below. Where an employee is dismissed close to two years and their statutory notice period would take them over the deadline, they are deemed to meet the two-year threshold.

What is Automatic Unfair Dismissal?

Individuals can claim automatic unfair dismissal even when they have been employed for less than two years where it is automatically classed as unlawful by the Employment Rights Act 1996. This includes reasons such as taking pregnancy leave, whistleblowing, joining a trade union, and asking for statutory rights.

Additionally, if a dismissal is discriminatory according to The Equality Act 2010, an employee can claim automatic unfair dismissal. The Equality Act identifies nine protected characteristics that every employer must safeguard in the workplace. If an employee is treated unfavourably or dismissed due to these characteristics, an employee can claim automatic unfair dismissal through discrimination without having two years of continuous employment.

Another reason which is growing momentum are acts related to protected disclosures, workers’ rights, and freedom of association.  In whistleblowing cases an employee can have a solid case of automatic unfair dismissal if an employer dismisses them for raising concerns of wrongdoing in the workplace.

Compensation for automatic unfair dismissal usually includes an amount paid to the employee for the time they spent out of work and lost income.  There is a cap on the weekly amount of £751 per week (as of 6 April 2026). The current cap on unfair dismissal is at £123,543 (as of 6 April 2026), which is set to be removed from 1 January 2027.

There is also an option for re-employment or reinstatement if wrongfully dismissed.

What is Constructive Dismissal?

Constructive dismissal claims can arise for where an employee feels aggrieved about their employers’ conduct.  This can include situations such as regularly not being paid the agreed amount with no good reason, being discriminated against, raising a grievance which is not investigated, and making unreasonable changes to working patterns without agreement. The employee usually has to have worked for the employer for a minimum of 2 years (subject to change to 6 months from January 2027)to initiate a claim. However, this limit does not apply resignations due to grievances relating to reasons such as pregnancy, childbirth or maternity leave, health and safety, and whistleblowing.

Constructive dismissal claims are very difficult to pursue, and so we advise that if you are considering resigning in contemplation of a claim to the Employment Tribunal, you must first seek legal advice.

A strict time limit of three months minus one day (subject to change from 1 October 2026 to six months minus one day) since the dismissal or resignation applies to claims that are submitted to the Employment Tribunal.  For example, if the last day of employment was 30 May, the claim would need to be submitted to the Employment Tribunal on or before 29 August.

The claim must also go through the ACAS Early Conciliation Process within these limits. However, Employment Tribunal time limits can be extended if the employee is going through the conciliation process when the Employment Tribunal time limit normally would expire.  Employment Tribunal time limits are incredibly strict and if you have been dismissed you should seek legal advice immediately as claims submitted “out of time” will not be accepted and your ability to pursue your claim will be lost.

Important

Please note, before submitting your claim you will first have to go through the ACAS Early Conciliation Process.

 

What is the Difference Between Wrongful Dismissal and Unfair Dismissal?

There are clear differences between the terms unfair dismissal and wrongful dismissal, although often they are both included at the same time as heads of a claim brought to The Employment Tribunal.  Unfair dismissals concern the breaking of an employee’s rights under statutory employment and discrimination legislation and usually requires 2 years of continuous employment. In contrast, wrongful dismissal relates to a breach of contractual rights contractual rights of the employee, taking effect from day one of employment.

 The amount of damages awarded to employees for wrongful dismissal includes the value of pay and benefits. This would be items such as pension entitlement, health cover, any car allowance and bonuses which arise that the employee would have received had the contract been terminated lawfully.

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