Under Section 94 of the Employment Rights Act 1996, employees have the right not to be unfairly dismissed. A dismissal may be unfair if there was not a valid reason or if the employer failed to follow a fair process.

Fair reasons for dismissal can include:

Even with a valid reason, dismissals can still be deemed unfair if employers do not comply with the Acas Code of Practice on Disciplinary and Grievance Procedures. Failure to follow correct procedures can increase compensation awards by up to 25%.

Constructive dismissal occurs when an employee resigns in response to their employer’s serious breach of contract. Although the employee resigns, the law treats this as a dismissal by the employer.

It typically arises where the employer’s conduct makes the working relationship untenable, for example:

To succeed in a constructive dismissal claim, an employee must prove that a fundamental breach occurred, that it led to their resignation, and that they resigned without undue delay.