Updating authors: Julian Hoskins and Sarah Lamont

On this page:
Summary
Future developments
Practical example
Action point checklist
Key references
Questions and answers
Overview
Pre-qualifying conditions
Employees excluded from the right
Reasons for dismissal
Fairness in the circumstances
Remedies
Compensation
(Repealed) statutory dismissal and disciplinary procedures

Summary

9.205

• Under provisions now contained in part X of the Employment Rights Act 1996, an employee has the right not to be unfairly dismissed by his or her employer (s.94 of the Employment Rights Act 1996). (See 9.208 Pre-qualifying conditions)
• If a claim for unfair dismissal is brought, the employer has to establish that the reason for the dismissal is one of the designated reasons set out in the statute and, if it overcomes that hurdle, the employment tribunal will go on to consider whether the dismissal was fair in all the circumstances. The only exception relates to retirement dismissals, which will be automatically fair provided that the employer has followed the appropriate statutory procedures. (See 9.210 Reasons for dismissal and 9.211 Fairness in the circumstances)
• If the dismissal is found to be unfair, the tribunal will order the employer either to re-engage or reinstate the employee or, more commonly, to pay compensation. (See 9.212 Remedies)
• The statutory dispute resolution procedures were abolished on 6 April 2009, and a revised "Acas code of practice on disciplinary and grievance procedures" was introduced. An employment tribunal may increase or decrease awards of compensation by up to 25% in the event of an unreasonable failure to comply with the code. (See 9.207 Overview)
• Retirement dismissals are potentially unfair unless the employer has complied with the strict procedures set out in the Employment Equality (Age) Regulations 2006 (SI 2006/1031). (See 9.210 Reasons for dismissal)

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Future developments

9.206 Maximum in a week's pay: The maximum amount of a week's pay that can be taken into account when calculating a basic or additional award rose from £350 to £380 on 1 October 2009. The amount normally changes on 1 February each year because the Employment Relations Act 1999 provides that the figure will increase (or decrease) in line with the retail prices index for September of the previous year.