Automatic Unfair Dismissal – A Croner Guide

Typically, an employee is required to have worked for at least two years for an employer to qualify for unfair dismissal. However, under certain circumstances, individuals can claim automatic unfair dismissal even when they’ve been employed for under two years. If you’re not compliant with these regulations when dismissing an employee, you put yourself at risk of tribunal claims. 

It’s important to note that the Government’s news Employment Rights Bill proposes to extend tribunal time limits; this change is set to come into effect in April 2026. Learn more about the Employment Rights Bills’ implementation timeline.  

An employer dismisses a worker without proper consideration during their first two years’ service. However, what the employer doesn't realise is that, if the reason for dismissal was discriminatory, the two-year qualifying service period for unfair dismissal is nullified. 

This Croner guide will help you identify why and when automatic unfair dismissal occurs to help you avoid such a situation. 

Are you concerned about dismissing an employee and want to ensure you undertake the dismissal process by the book? Call our experienced HR advisors on 0808 501 6651. 

Automatically unfair reasons for dismissal

The Equality Act 2010 identifies the nine protected characteristics that every employer must safeguard in the workplace. This means they need to ensure that they don’t treat employees less favourably due to one of these traits. If treated unfavourably or dismissed for reasons related to these traits, an employee can claim unfair dismissal through discrimination. 

Most companies strive to make their workplace more inclusive. However, we have seen employers struggle to identify the reason a dismissal is automatically unfair. 

According to the Employment Rights Act 1996, an automatic unfair dismissal means that the company terminates employment for the wrong reasons. This legislation details situations where a dismissal will automatically qualify as unlawful. 

Most reasons pinpointed by UK law include acts related to protected disclosures, workers’ rights, and freedom of association. For example, an employee can have a solid case of automatic unfair dismissal for whistleblowing. If their company lets them go for raising concerns over safety in the workplace, they can take the employer to a tribunal. 

In the following section, we will list the most common types of automatically unfair dismissal. 

Automatically unfair dismissal examples

There are many reasons for termination of employment that could make the process unfair and could lead to costly tribunal claims. Some of the main reasons for automatic unfair dismissal include: 

• Taking or asking to take leave for pregnancy, childbirth, adoption, or parental duties. 

• Asking for compassionate leave (including bereavement). 

• Whistleblowing for any workplace related concerns (health & safety, workers’ rights and treatment, policies and procedures, discrimination). 

• Taking action at work on health & safety grounds. 

• Acting as an employee representative in collective bargaining. 

• Acting as a trade union representative. 

• Joining or not joining a trade union. 

• Participating in protected industrial action. 

• Asserting or trying to assert a statutory right (such as statutory sick leave, statutory notice period and statutory maternity pay). 

• Asserting or trying to assert pay and working hours, contractual and legal rights, and requirements. 

• Undertaking jury service. 

This list should give you a fair idea of what to look out for and avoid the wrongful termination of an employee. There are other reasons that fall within the same categories of workers’ actions protected by the law. If in doubt, ask us today for free employment law advice so we can help you understand and avoid legal risks by calling 0808 501 6651. 

Remedies for automatically unfair dismissal

If the employee can demonstrate the employer let them go for any of the reasons seen above, they can claim compensation for automatic unfair dismissal. Legally, this represents damages paid to the worker for the time they spent out of work and lost income. 

To calculate this, the judge multiplies payment for the number of weeks/months without work. The pay is capped at £571/week for dismissals that took place from April 6th, 2022. Still, it can accumulate to a considerable amount in relation to how long the entire process takes. 

Besides paying them damages, the company might have to re-employ the staff member they dismissed. 

Talk to a Croner HR advisor

When you consider dismissing an employee, ensure that you do not end their employment for unlawful reasons. If you let them go under circumstances highlighted by the Employment Rights Act 1996, you risk automatically losing a tribunal claim. You might have perfectly valid reasons to end a worker’s service for your company. By checking them against the examples highlighted by the law you will start off on the right foot. 

If in doubt about how to avoid making mistakes when dismissing staff members, we can help. Call our 24/7 HR advice line to get free advice today, on 0808 501 6651.