Unfair and constructive dismissal

Being dismissed unfairly and being dismissed for a reason that is unlawful are different claims worth very different amounts. Getting that distinction right at the start is most of the case.

The distinction that decides what your claim is worth

Ordinary unfair dismissal is about process and reasonableness. Did the employer have a potentially fair reason, and did it act reasonably in treating that reason as sufficient? Compensation is currently capped at £123,543 or 52 weeks’ actual pay, whichever is lower. For most people the 52-week limb bites first.
Automatically unfair dismissal arises where the reason falls into a protected category — whistleblowing, asserting a statutory right, pregnancy, trade union activity and others. There is no qualifying period, and for whistleblowing there is no cap.
Discriminatory dismissal is a claim under the Equality Act 2010. No qualifying period, no cap, and a separate award for injury to feelings currently running from £1,300 to £62,900 and beyond in exceptional cases.

The same set of facts can support more than one of these. Which you run, and how you plead it, is the single biggest determinant of value — and it is a decision made at the outset, not later.

Two dates that change the position

From 1 January 2027 the cap on the compensatory award is removed altogether, and on the same date the qualifying period for ordinary unfair dismissal falls from two years to six months.

The change applies where the effective date of termination falls on or after 1 January 2027. A termination in late December 2026 is capped; one in early January is not. If you are in an exit process now and you earn well, the termination date is a negotiable term that has just become one of the most valuable points on the table.

Constructive dismissal

Where you resign because of your employer’s conduct, and the law treats that as a dismissal.

It requires a repudiatory breach of contract — conduct going to the root of the relationship — that you resign in response to, without delaying so long that you are taken to have accepted it. Common examples: a unilateral change to pay or role, a failure to deal with a grievance about bullying, removing responsibilities without explanation, or a course of conduct that cumulatively destroys trust and confidence.

These claims are harder than they look, and the two things that defeat them are both within your control.
Delay. Staying too long after the conduct can be treated as affirming the contract. There is no fixed period, but weeks are safer than months and you should take advice before deciding to wait.
Resigning without making the reason clear. A resignation letter that says “pursuing other opportunities” is a problem later. The letter should set out what you are resigning in response to.

Take advice before you resign if you possibly can. It is the one point at which advice changes the outcome most, and the one at which it is most often not taken.

Time limits

Currently three months less one day from the effective date of termination, with Acas early conciliation required before issuing. From 1 October 2026 the limit for most employment claims rises to six months, where the act complained of falls on or after that date.

Contract claims brought in the tribunal — unpaid notice, for instance — keep the three-month limit, running from termination.

What we do

Work out which claims the facts actually support, and what each is worth. Advise on whether to pursue a grievance or appeal first, and what that does to the timetable. Handle Acas conciliation. Draft the claim so the valuable elements are pleaded properly from the start. And tell you, honestly, if the claim is not worth running.

What it costs

£400 per hour plus VAT with a stage-by-stage estimate. Conditional fee arrangements are available in some claims depending on the merits — ask on the first call.

Questions

Questions people ask us

Do I need two years' service?

For ordinary unfair dismissal, currently yes — falling to six months from 1 January 2027. There is no qualifying period for discrimination, whistleblowing, or dismissal for asserting a statutory right. If you have been told you have no claim because of your length of service, that is worth a second opinion.

What is my claim worth?

The compensatory award covers actual financial loss, currently capped at £123,543 or 52 weeks’ pay, with the cap removed from January 2027. There is also a basic award, currently capped at £9,157. Discrimination claims are uncapped and add injury to feelings on top.

Should I appeal internally first?

Usually yes. Failing to appeal can reduce compensation, and the appeal sometimes resolves matters. But it does not stop the clock — the time limit runs regardless, so start the tribunal process in parallel.

I resigned. Is it too late?

Not necessarily, but move quickly. Delay after the conduct complained of is the most common reason constructive dismissal claims fail.

How long will it take?

A matter settling at conciliation may conclude in six to twelve weeks. A contested hearing commonly takes nine to eighteen months from issue.

Start with a conversation

A free 20-minute call. Tell us what has happened and we will tell you whether we can help, what it would involve and roughly what it would cost.

No charge

A free 20-minute call

Tell us what has happened and we will tell you whether we can help, what it would involve and roughly what it would cost. No advice is given on this call and there is no charge for it.

£350 plus VAT

A paid strategy session

One hour with a partner, followed by a written summary of your position and options. For people who want proper advice without instructing a firm yet. Credited in full against your fees if you go on to instruct us.

Or reach us directly

We answer enquiries the same working day.

Scroll to Top