To be a 'fair' dismissal, a UK employer must show that it was for one of five specific reasons. The employer must also have acted fairly and reasonably in carrying out the dismissal. The Employment Rights Act 2025 (ERA 2025) makes significant changes to UK employment law including dismissal.

This factsheet explains the difference between wrongful, unfair and constructive dismissal and looks at future developments. 

Please note 

Under the Employment Rights Act 2025 (ERA 2025), from 1 January 2027, the two-year unfair dismissal qualifying period will be reduced, allowing employees to claim unfair dismissal after just six months' service. The cap on compensatory awards will also be removed, allowing tribunals to award uncapped levels of compensation.

These changes will start to impact lawyers from 1 July 2026 as new hires from this date will be able to claim unfair dismissal after just six months' service. The changes mean that any employee recruited after 1 January 2025 will be able to claim unfair dismissal earlier than under the previous rules. 

Organisations should review probation processes to ensure a good organisation fit. Look at our recruitment employment law page and our probation guidance and tools that provide detailed, practical advice and resources on managing probation periods. See also our infographic on the ERA unfair dismissal hub.

Keep up to date with the latest on these changes with our ERA 2025 tracker of law changes.

This page outlines the current legislation around dismissal.

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