Changes to unfair dismissal laws: Employment rights to know

Home » News & Knowledge » Major Changes to Unfair Dismissal: How the Human Rights Bill 2024-25 Transforms Employment Law

The new and improved Employment Rights Bill 2024-25 represents a significant step towards improving job security and fairness in the workplace.

By extending protections against unfair dismissal and reinforcing the rights of workers, the legislation seeks to foster a more equitable landscape, benefiting both employees and employers overall.

Changes to Unfair Dismissal

The Employment Rights Bill 2024-25 brings major changes to UK employment law, particularly in unfair dismissal cases. With stronger protections for workers facing wrongful termination and workplace discrimination, this legislation reshapes job security and employment rights.

What does Unfair Dismissal mean and how does it happen?

Unfair dismissal is a significant issue in employment law, referring to a situation where an employee is unfairly dismissed from their job without cause or in violation of legal protections. Within the UK, employees have rights that protect themselves from being unfairly dismissed. Therefore, understanding these rights is crucial for both employees and employers.

Unfair dismissal refers to a situation where an employee is terminated without a fair reason or in breach of their employment contract. Under UK employment law, workers are entitled to legal protection against wrongful dismissal and constructive dismissal.

The legal framework surrounding unfair dismissal typically requires that an employee must have been employed for a certain period before they can claim for ‘ordinary’ unfair dismissal, usually at least two years in the U.K.

Grounds for unfair dismissal can include a lack of fair procedure, discrimination or dismissal for reasons that are not considered fair such as whistleblowing or asserting a legal right. Employees who believe they have been unfairly dismissed, can take their case to an employment tribunal, where they can seek reinstatement or compensation.

Employees who believe they have been unfairly dismissed can file a claim through an employment tribunal, seeking compensation or reinstatement.

Employer Responsibilities

Employers must follow proper legal procedures when terminating an employee’s contract. This often involves conducting a thorough investigation, holding a disciplinary hearing, and providing the employee with an opportunity to appeal the decision.

Failure to adhere to these procedures can lead to claims of unfair dismissal, which can have serious financial and reputational consequences for businesses.

Employers must follow fair dismissal procedures, including issuing notice periods and ensuing compliance with employment legislation. Failure to do so may lead to claims of wrongful dismissal or workplace litigation.

In cases of redundancy, employees may be entitled to a redundancy payout, which can be calculated using an official redundancy calculator.

What is the Employment Rights Bill?

The Employment Rights Bill 2024-25 was introduced in the UK. Aiming to enhance protections against unfair dismissal and strengthen workers’ rights in the evolving job market.

As the nature of work continues to change, particularly with the rise of remote working, this legislation seeks to address gaps in existing laws and ensure fair treatment for all employees.

What impact will the Employment Rights Bill have on you?

The key changes towards Unfair Dismissal within The Employment Rights Bill 2024-25 include:

Extension of the qualifying period for employees who must have worked for at least two years to make an eligible claim. This new bill proposes reducing this period to one year, allowing more workers to seek justice if they believe they have been unfairly dismissed. This change is particularly significant for younger workers and those in precarious employment situations, who often face job insecurity.
The bill introduces measures to protect employees from dismissal related to their rights to flexible working and parental leave.
Emphasises the importance of fair proceedings during the dismissal process requiring employers to provide obvious reasons for termination and to follow a structured disciplinary process. This aims to create a more transparent workplace environment where employees feel safe to raise concerns without fear of retaliation.

The bill aims to protect workers in zero-hours contracts, ensuring fair treatment and safeguarding their employment rights.

Overall, Unfair dismissal is a complex area of employment law that protects employees from unjust termination. This change will allow both parties to understand their rights and responsibilities to navigate the challenging aspects of the workplace effectively.

If you are facing unfair dismissal or a breach of contract, seek employment advice immediately. You may be eligible for compensation or unemployment benefits through an employment tribunal.

If you believe you have been unfairly dismissed, consult an employment law expert or see our website resource to understand your rights.

Frequently asked questions

Should I appeal my dismissal?

If you believe the reason for your dismissal was unfair, you should appeal against the decision as soon as possible, in line with your employer’s disciplinary policy.

Your employer should have advised you on how you can appeal the decision and what your deadline to appeal is. Again, these should be detailed in the disciplinary policy.

Your employer’s disciplinary policy (which is found in the Company Staff Handbook) should also provide details on the internal appeals process.

If you need advice on drafting an appeal, please contact Oakwood Solicitors Ltd as soon as possible so we can put you in touch with one of our qualified employment advisors.

What are the automatically unfair reasons for dismissal?

Automatic unfair dismissal is when the requirement of being employed for more than two years is overlooked. This means you will be able to make a claim against your employer even if you have not worked there for at least two years.

Automatically unfair reasons to dismiss an employee can include dismissal as a result of:

Being pregnant or on maternity leave
Wanting to take family leave, for example, parental, paternity, or adoption leave
Being a trade union member or representative
Asking for a legal right, for example, to be paid the National Minimum Wage
Doing jury service
Being involved in whistleblowing
Taking action, or proposing to take action, over a health and safety issue

When should you seek legal advice for wrongful dismissal?

It is important to act quickly if you think you have been unfairly dismissed. The time limits for claiming are short.

You should get legal advice as soon as you are able. It’s possible your employer may ask you to sign a settlement agreement, to protect it against an unfair dismissal claim. If they do this, it is a legal requirement that you receive legal advice on the terms and effect of the agreement.

Outcomes of an employment tribunal claim

The Employment Tribunal can award a successful Claimant the following remedies in relation to an unfair dismissal:

Compensation, including loss of earnings and loss of pension rights.
Reinstatement (an order from the Tribunal that states your employer should reinstate you on the same terms and conditions prior to your dismissal)
Re-engagement (an order from the Tribunal that states your employer should re-engage you, on new terms or a different job role at a different site than your previous role).

Reinstatement and re-engagement are not common outcomes awarded by the Tribunal.

How much compensation may I receive for unfair dismissal?

If you have been dismissed unfairly, you might be entitled to make a claim against your employer.

How much compensation you receive will depend on the circumstances and your losses, but it is usually awarded as a compensatory award and a basic award.

Compensatory Award

The compensatory award is usually the larger of the two elements and is awarded by a tribunal to compensate you for losses you have sustained as a result of your employer’s unfair actions.

The maximum ‘compensatory’ award in the tribunal for unfair dismissal is one year’s salary, or £105,707, whichever is lower (from 6 April 2023).

However, you have a duty to mitigate your loss, which means that if you get a new job straight away on the same or more money, you will not be entitled to any compensatory award at all.

Basic Award

The other element of unfair dismissal compensation is a ‘basic award.’ This is similar to statutory redundancy pay – and is:

1.5 weeks’ pay per year of service from age 41.
1 week’s pay for each year of service if you are aged 22 – 40.
0.5 week’s pay for each year served if you are under 22 years.

This payout is based on your gross weekly pay when you were dismissed up to a maximum of £643 (whichever is lower) per year of service.

This is unlikely to amount to much unless you have been with your employer for a long time and the payout is capped at a maximum of £19,290. (All figures from 6 April 2023.)

Often it is better to try to remain employed rather than quit or be fired, that way you can leverage a higher settlement payout from your employer because they will effectively pay you to leave.

Why should I choose Oakwood Solicitors Ltd?

You will have a dedicated advisor who will see your claim through from start to finish, assisting you in the event of any queries or issues you may have. If it is preferable to you, we can assign a female advisor to conduct your claim.

Your case handler will also continue to provide regular updates until the conclusion of your claim, ensuring the process is as stress-free and effortless as possible.

Major Changes to Unfair Dismissal: How the Human Rights Bill 2024-25 Transforms Employment Law