Dismissal: UK employment law

A dismissal normally occurs when an employer ends a contract of employment. Employers must meet specific legal obligations to ensure a dismissal is fair.

This page covers:  

• Dismissal by the employer.
• Constructive dismissal, where an employer commits a serious (repudiatory) breach of contract, and the employee resigns in response.  
• Automatic unfair dismissal, where dismissal is for a reason protected by law, such as making a protected disclosure (whistleblowing).  

There are strict rules governing dismissal and employees’ rights to challenge it. People professionals will be aware that Acas’ Code of Practice on Disciplinary and Grievance Procedures is central to conducting a fair dismissal process. The Code is currently under review following consultation, and this page will be updated when any revisions are confirmed. 

The page below explains dismissal rules in context of statutory obligations and case law; including the rules relating to ‘fire and rehire’.  

Further changes affecting dismissal are expected from January 2027 and this page will be updated as legislation is confirmed: 

• From 1 January 2027, the continuous service period for ordinary unfair dismissal claims will reduce from two years to six months. The statutory cap on compensatory awards for unfair dismissal will also be removed.   
• Fire and rehire: From March 2027, new protections will apply where employers seek to change certain fundamental terms and conditions (‘restricted variations’). Dismissals connected with re-engagement on new terms, or replacement of employees on those terms, will generally become automatically unfair. In addition, the overall rules and exemptions will be further restricted.    
• NDAs/settlement agreements: Clauses relating to workplace harassment and discrimination will be void unless they meet specific criteria, to be set out in regulations for an ‘exempted agreement’.