Frequently Asked Questions
What is the qualifying period for unfair dismissal?
2 years' continuous employment (from April 2012). Day 1 rights apply to automatically unfair dismissal (e.g., whistleblowing, pregnancy, union activity).
What is the Basic Award for unfair dismissal?
The Basic Award uses the statutory redundancy formula: half a week's pay per year under 22, one week's pay per year aged 22–40, and 1.5 weeks' pay per year over 40. Capped at £19,290 for 2025/26.
What is the Compensatory Award cap?
£115,115 or 52 weeks' gross pay, whichever is lower (2025/26). There is no cap for dismissals connected to whistleblowing or health and safety.
What is the time limit to bring an unfair dismissal claim?
3 months less 1 day from the effective date of dismissal. You must first go through ACAS Early Conciliation before filing an ET1.
What is ACAS Early Conciliation?
Before making a tribunal claim, you must notify ACAS. ACAS contacts the employer to attempt settlement. The process can pause the 3-month time limit.
Can I claim unfair dismissal if I resigned?
Yes — if your employer's conduct forced you to resign (constructive dismissal), you can claim unfair dismissal. You must resign promptly after the breach.
What is automatically unfair dismissal?
Day 1 rights — no qualifying period needed: dismissal for pregnancy/maternity, whistleblowing, asserting statutory rights, trade union activity, health and safety activities.
Will I get a Polkey reduction?
HMRC may reduce your award if you had a fair hearing it would have made no difference. Tribunals can reduce the Compensatory Award if dismissal was inevitable.
Do I get taxed on unfair dismissal awards?
The first £30,000 of compensation for unfair dismissal is tax-free. Basic Award may be taxed if it relates to employment income. Injury to feelings awards are usually tax-free.
What is a Calderbank offer?
An employer's settlement offer made without prejudice. If the tribunal awards less than the offer, you may pay the employer's costs from the offer date.
Can the tribunal award reinstatement?
Yes — the tribunal can order reinstatement (return to same job) or re-engagement (return to comparable job). In practice, most awards are compensation rather than reinstatement.
What if my employer cannot pay?
If the employer is insolvent, you can claim from the National Insurance Fund. The NIF pays Basic Award and up to 8 weeks' Compensatory Award (subject to weekly pay cap).