Losing your job can be stressful and confusing, especially if you don’t understand the reason for it. Two of the most commonly misunderstood dismissal situations are unfair dismissal and redundancy. While both involve ending someone’s employment, they are legally and practically very different. Understanding those differences can help you determine whether you have the grounds to make a claim – and what steps to take next.
What is unfair dismissal?
Unfair dismissal happens when your employer ends your employment without a fair reason or without following correct procedure. Under UK law, most employees who have worked for their employer for at least two years have the right not to be unfairly dismissed.
There are only five fair reasons section 98 in the Employment Rights Act 1996, that an employer can lawfully use to justify dismissing you. These include:
● Misconduct – for example, theft, harassment or repeated lateness
● Capability – performance issues – such as not meeting the required standards despite support to do so
● Redundancy – when your role no longer exists
● Statutory illegality – if continuing your employment would break the law- for example where a delivery driver is banned from driving for a speeding offence.
● Some other substantial reason (SOSR) – a catch-all category covering situations like personality clashes or the non-renewal of a fixed-term contract or serious personality clashes. SOSR is often used incorrectly and both employers and employees involved in SOSR dismissals would be wise to seek advice from a solicitor.
Even when there’s a potentially fair reason for letting you go, your employer must still follow the proper process. That means investigating the situation thoroughly, allowing you to respond and considering alternative scenarios before making a decision. Failing to do this could make the dismissal unfair, even if the reason itself seems valid.
Is unfair dismissal the same as wrongful dismissal?
No – although the two terms sound similar, they cover different legal issues.
● Unfair dismissal is about whether your employer acted fairly and reasonably and followed a foar process when deciding to dismiss you.
● Wrongful dismissal, on the other hand, is a breach of contract. It focuses on whether your employer broke the terms of your employment contract, for exmaple by failing to give the correct notice period, or failing to pay the correctnotice pay or dismissing you in breach of contractual procedures. In other words, unfair dismissal is based on employment law rights enshrined in UK legislation, while wrongful dismissal is based on contract law. It is possible for a dismissal to be both unfair and wrongful.
How to claim unfair dismissal
If you believe you’ve been unfairly dismissed, the first step is to try to resolve the issue informally or through your employer’s internal appeal process. If that doesn’t work, you can submit a complaint to acas, and enter into six weeks of conciliation and if the dispute is not resolved you will receive a conciliation certificate and reference number which you need to make a claim to an Employment Tribunal.
Acas (the Advisory, Conciliation and Arbitration Service) for early conciliation is a free service, through which Acas will conciliate to help you reach a legal agreement with your employer. The aim of Acas is that you won’t need to go to the Employment Tribunal, but if no agreement is reached, Acas will provide a certificate allowing you to proceed with your claim.
The process of early conciliation is currently six weeks, , but is expected to change to 12 weeks from 1 December 2025, if you notify Acas on or after this date.
What’s the difference between redundancy and unfair dismissal?
Redundancy is not the same as unfair dismissal. It happens when your employer reduces their workforce because your job is no longer needed – for instance, if the business closes, relocates or restructures.
A redundancy must meet three conditions:
1. The employer’s requirement for employees to do the kind of work you do has ended or diminished.
2. A fair selection process has been used.
3. The employer has consulted with you and explored suitable alternative roles for you.
If these steps aren’t followed, or if redundancy is used as an excuse to end your employment unfairly, you may still have a claim for unfair dismissal due to redundancy.
If you’re unsure whether your situation counts as unfair dismissal or redundancy, it’s important to seek professional legal advice as soon as possible. An employment law specialist can help you understand your rights and the best way forward. For expert employment law advice, contact Amicus Law today.