In 2026, claiming unfair dismissal requires two years of continuous employment under Employment Rights Act 1996, section 108. The Employment Rights Act 2025 (Royal Assent 18 December 2025) will reduce this to six months from 1 January 2027 — subject to confirmation by secondary legislation; check GOV.UK. Day-one unfair dismissal rights were not enacted. The maximum compensatory award is £123,543 (or one year's gross pay if lower) from 6 April 2026; the basic award maximum is £22,530 (weekly pay cap £751). ERA 2025 removes the compensatory cap from January 2027. Updated June 2026.
Source: Employment Rights Act 1996, s.94–124 (as amended by Employment Rights Act 2025, ss.20–22); Employment Rights (Increase of Limits) Order 2026; acas.org.uk/dismissal.
What the law says
The right not to be unfairly dismissed is set out in Employment Rights Act 1996, Part X (sections 94–134). Section 94 grants the right; sections 95–107 define dismissal and qualifying conditions; sections 111–124 govern the tribunal process and remedies.
An employer must show both:
- A fair reason for dismissal from the statutory list (ERA 1996, s.98).
- That the dismissal was procedurally fair — the employer acted reasonably in treating that reason as sufficient grounds.
Source: gov.uk/dismissal/unfair-and-constructive-dismissal.
The qualifying period: two years in 2026
Throughout 2026, you need two years of continuous employment with the same employer to bring an unfair dismissal claim. This is the rule under ERA 1996, s.108(1).
The qualifying period is calculated from the start of employment to the effective date of termination (EDT). The EDT is usually:
- The last day of the notice period (if notice was given and worked or paid in lieu).
- The date of summary dismissal (if dismissed without notice for gross misconduct).
If you have less than two years' service, you cannot bring an ordinary unfair dismissal claim — but see automatically unfair dismissal below.
Note: Day-one unfair dismissal rights were not enacted by the Employment Rights Act 2025. The policy was revised before enactment; the Act legislates a six-month threshold from January 2027, not a day-one right.
Source: ERA 1996, s.108; Employment Rights Act 2025, ss.20–22; acas.org.uk/dismissal.
The ERA 2025 change: six months from 1 January 2027
From 1 January 2027 (subject to confirmation — check GOV.UK for the latest commencement date), the Employment Rights Act 2025 will reduce the qualifying period from two years to six months under ERA 1996, s.108 (as amended).
This means employees dismissed on or after 1 January 2027 with at least six months of continuous service will be able to bring unfair dismissal claims. Employees dismissed before 1 January 2027 are governed by the two-year rule, even if the claim is brought after that date.
The ERA 2025 also removes the statutory cap on the compensatory award from the same date (see below). For the full detail of 2027 changes, see ERA 2025 changes expected in 2027.
Automatically unfair dismissal — no qualifying period needed
Some dismissals are automatically unfair regardless of length of service. These include dismissal because of:
- Pregnancy or maternity leave (ERA 1996, s.99).
- Exercising a statutory right — such as requesting flexible working, taking family leave, or requesting a written statement of terms (ERA 1996, s.104).
- Whistleblowing — making a protected disclosure about wrongdoing (ERA 1996, s.103A; Public Interest Disclosure Act 1998).
- Trade union membership or activity (Trade Union and Labour Relations (Consolidation) Act 1992, s.152).
- Health and safety activities (ERA 1996, s.100).
- Taking lawful industrial action within the 12-week protected period.
- Assertion of national minimum wage rights (National Minimum Wage Act 1998, s.23).
- Fire-and-rehire — from 1 January 2027 (ERA 2025, ss.23–29), most dismissals for the purpose of re-engaging on worse terms will be automatically unfair.
No qualifying period applies to automatically unfair dismissal claims. Source: acas.org.uk/dismissal.
The five fair reasons for dismissal
Under ERA 1996, s.98, a dismissal may be fair if the employer can show one of five reasons:
| Reason | Examples |
|---|---|
| Capability | Performance below standard; ill health rendering inability to do the job |
| Conduct | Misconduct, gross misconduct, dishonesty |
| Redundancy | Genuine reduction in the need for workers in a role |
| Statutory restriction | Continued employment would breach a statute (e.g. driver losing licence) |
| Some other substantial reason (SOSR) | Business reorganisation; third-party pressure; expiry of a fixed-term contract |
Having a fair reason is not enough — the employer must also follow a fair procedure. For most conduct and performance dismissals, this means following the ACAS Code of Practice on Disciplinary and Grievance Procedures. Failure to follow the Code can increase any award by up to 25%. Source: ERA 1996, s.207A; acas.org.uk/acas-code-of-practice-on-disciplinary-and-grievance-procedures.
Constructive dismissal
Constructive dismissal occurs when an employee resigns in response to a fundamental breach of contract by the employer. To bring a constructive dismissal claim, the employee must show:
- The employer committed a fundamental (repudiatory) breach of contract.
- The employee resigned in response to that breach — not for another reason.
- The employee did not "affirm" the contract by continuing to work for an unreasonable period after the breach.
Constructive dismissal is still a dismissal for the purposes of ERA 1996, s.95(1)(c), and carries the same qualifying period (two years in 2026). Source: ERA 1996, s.95(1)(c); acas.org.uk/dismissal.
Employment tribunal compensation
If an employment tribunal finds a dismissal was unfair, it may order:
Reinstatement or re-engagement (ERA 1996, s.113–117): Reinstatement means returning to the same job on the same terms; re-engagement means returning in a comparable role. Tribunals rarely order reinstatement in practice if the employment relationship has broken down.
Compensation — two elements:
| Award | How calculated | Maximum from 6 April 2026 |
|---|---|---|
| Basic award | Age × service × weekly pay (same formula as redundancy pay) | £22,530 (30 weeks × £751) |
| Compensatory award | Actual financial loss suffered (loss of earnings, future loss, benefits) | Lower of £123,543 or 52 weeks' gross pay |
From 1 January 2027: ERA 2025 removes the statutory cap on the compensatory award. The basic award formula is unaffected. Subject to confirmation — check GOV.UK.
Compensation may be reduced if the employee contributed to their own dismissal, or if ACAS Code procedures were not followed by either party. Source: ERA 1996, s.118–124; Employment Rights (Increase of Limits) Order 2026; acas.org.uk/dismissal.
Time limits and ACAS early conciliation
Before submitting an employment tribunal claim for unfair dismissal, you must first contact ACAS to notify them of your intention to claim. This triggers the early conciliation process.
- 3 months minus 1 day from the EDT to notify ACAS (in most unfair dismissal cases).
- From 1 December 2025, the maximum early conciliation period is 12 weeks (doubled from six weeks under the Employment Tribunals (Early Conciliation: Exemptions and Rules of Procedure) (Amendment) Regulations 2025).
- Once ACAS issues a conciliation certificate (if conciliation fails), you have at least one month from the certificate date to submit your tribunal claim.
- From October 2026, most tribunal time limits will extend to six months under ERA 2025 (subject to commencement).
Missing the time limit is very likely to result in the claim being rejected. Source: ERA 1996, s.111; acas.org.uk/employment-tribunal-time-limits.
For more on the early conciliation process, see ACAS early conciliation explained.
Employment tribunal hub
For more on the tribunal process, compensation, and ACAS conciliation, see the employment tribunal hub. For the ERA 2025 changes to unfair dismissal rights from 2027, see unfair dismissal qualifying period reduced to six months (effective 1 January 2027).
Frequently asked questions
See the FAQ below. For advice specific to your situation, contact ACAS or call the ACAS helpline on 0300 123 1100. This site does not give legal advice.
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