Unfair dismissal is the legal term for being sacked without good reason – or without your employer following the company's dismissal process.

To claim unfair dismissal, you have to be officially classed as an "employee", as opposed to a "worker". You also need to have been employed for two continuous years by the company dismissing you – either as a part-time or full-time employee.

What counts as unfair dismissal?

Your dismissal could be unfair if the reason given was false, unfair or without fair warning.

Employees have rights that are protected by law. If the nature of the dismissal violates these rights, it's classed as "automatically unfair". In these situations, the two-year rule doesn't apply. "Automatically unfair" reasons for dismissal include:

• Pregnancy and maternity leave.
• Paternity or adoption leave.
• Whistleblowing.
• Being discriminated against as defined by the Equality Act 2010.
• Being part of a trade union in any capacity.
• Taking rest breaks.
• Working part-time or fixed-term.
• Requesting annual leave, the National Minimum Wage or Working Tax Credit.

In other words, if you're fired for exercising a legal right, it's automatically unfair regardless of how long you've worked for the employer.

What can you do if you're unfairly dismissed?

The first port of call in the event of an unfair dismissal is to appeal it internally. The ideal scenario is that your employer reverses the decision.

If this doesn't happen, you can take your case to an employment tribunal. In this case, it can help to have legal guidance from a solicitor specialising in employment law.

Making a claim

To make a claim, you need to set up a chronological account of what happened and state your claims. There are some complexities to employment law and time limits, which may mean it's worth seeking legal advice from a solicitor.

How can a solicitor help?

Taking part in an employment tribunal is costly, stressful and time-consuming. Having an expert on hand to advocate for you can help relieve some of that stress.

If you want legal help, you can contact a solicitor and explain your situation over the phone. It's important to be accurate about the date of dismissal as this can be relevant to the time limits.

When you meet the solicitor, they will begin gathering evidence. They will ask you to describe more fully the details of your problem and any events that led up to it. They will want to know what steps you've taken to resolve the issue and what relevant documents are in your possession.

It's worth noting that if you don't appeal your dismissal internally before instructing a solicitor, the tribunal can reduce your compensation.

Your solicitor can assist you in presenting your case and try to negotiate a settlement for you.

What is a "settlement agreement"?

A settlement agreement is issued if you reach an agreement with your employer and so don't have to go to a tribunal. It's a legal document confirming the agreement you have reached. Once received, you drop legal action against your employer.

What happens at an employment tribunal?

The hearing is run by an employment judge and will include evidence from the employer, its legal representative, the employee and the employee's solicitor.

The tribunal's job is to decide whether your claim should be "upheld" – in other words, whether the claim you are bringing is correct.

What happens if the tribunal decides in your favour?

In this instance, you can be awarded compensation – or, on rare occasions, have your job reinstated.

Compensation is split into two sums that are calculated separately.

The first is called a "basic award". This amount is worked out using a formula that takes into account things like the length of your employment, your age and your weekly pay. At the time of writing, weekly pay is capped at £571, regardless of whether your actual gross weekly pay exceeds that amount.

The second sum is called a "compensatory award". This is an award for loss of earnings. It doesn't cover stress or upset unless you're claiming that you were discriminated against. And it won't cover your legal costs unless the tribunal decides your employer has behaved entirely unreasonably.

Full details of how this is calculated are set out here – but put simply, it's based on your weekly or monthly income after tax and national insurance. You calculate your "past losses" – the money you've lost through being unfairly dismissed – and your "future losses" – the money you expect to lose while looking for a similar position.

Can your compensation be reduced?

There are some circumstances in which your compensation can be reduced. These centre on your behaviour – if, for instance, they decide that you were partly responsible for your dismissal, or you haven't tried hard enough to find a new job.

With regards to the employer, your compensation could be reduced if they failed to follow the correct procedure when dismissing you, but had valid grounds to do so.

It's important to know what to expect by way of compensation. A solicitor can help you make these calculations. The average award for unfair dismissal claims in 2018/19 was £13,704.

Who pays for employment tribunal costs?

Usually, each side pays their own solicitor's fees and legal aid is unavailable – unless the case centres on discrimination rather than unfair dismissal per se.

If either side acts unreasonably, the tribunal can order them to cover the other's costs.

What are the time limits?

Most claims must be made within three calendar months of the date of dismissal.

Employment law advice from Milners Law

Whether or not your case reaches an employment tribunal, unfair dismissal can be a turbulent time. You may find that seeking expert legal help makes the process smoother and gets the issue resolved more quickly than if you try to go it alone.

At Milners Law, our expert employment lawyers will fight your corner and deliver friendly, jargon-free advice. Interested? Please don't hesitate to contact us for a free, no-obligation consultation.