How to Apply for Wrongful Dismissal Compensation in the UK

The Employment Rights Act 1996 governs the process for applying for wrongful dismissal compensation in the UK. This statute affects all employees who have been dismissed unfairly, providing them with a framework to claim compensation.

The effective date for claiming wrongful dismissal compensation is within 3 months of the dismissal, as per Section 111 of the Employment Rights Act 1996.

Wrongful Dismissal Law and Legal Standard

The Employment Rights Act 1996, Section 94, outlines the legal standard for wrongful dismissal, which includes a breach of contract by the employer. In plain terms, this means that employees must prove their employer failed to follow contractual procedures or statutory requirements. The court will consider the circumstances of the dismissal, including any notice periods and the reasons given for the dismissal, under the principles established in the case of Polkey v A E Dayton Services Ltd [1987] IRLR 503.

This is where the law gets teeth, as employers who have wrongfully dismissed employees can be liable for compensation under Section 119 of the Employment Rights Act 1996, with awards ranging from £6,600 to £89,493, depending on the circumstances of the case and the employee’s length of service.

Eligibility and Requirements

Eligibility for wrongful dismissal compensation requires employees to have been continuously employed for at least 2 years, as per Section 108 of the Employment Rights Act 1996. In practice, this means that employees must have completed 2 years of service with their employer to qualify for compensation. The employee must also have been dismissed, rather than having resigned or been made redundant, and must have a gross weekly pay of £525 or less, as per the Employment Rights (Increase of Limits) Order 2022.

Employees who have been dismissed while on maternity leave or due to whistleblowing activities may have different eligibility requirements, as outlined in the Employment Rights Act 1996, Section 47C. The time limit for bringing a claim is 3 months from the date of dismissal, as per Section 111 of the Employment Rights Act 1996, and employees must provide their employer with written notice of their intention to claim compensation within 28 days of the dismissal.

Required Documents

Employees will need to provide their employer with written notice of their intention to claim compensation, including details of their employment, the date of dismissal, and the reasons for the claim, as per the ACAS Early Conciliation process. In plain terms, this means that employees must submit a formal letter or application form to their employer, which can be obtained from the ACAS website or by contacting the employer’s HR department.

Common mistakes made by employees when submitting their claim include failing to provide adequate notice, not including all relevant details, or missing the deadline for submission, which can result in the claim being rejected or delayed, under the principles established in the case of British Broadcasting Corporation v Sweeney [2007] IRLR 861.

The Filing Process

Step 1: Early Conciliation

The first step in the filing process is to contact ACAS to initiate early conciliation, which must be done within 1 month of the dismissal, as per the ACAS Early Conciliation process. Employees can contact ACAS by phone or online, and will need to provide their employer’s contact details and a brief summary of their claim.

The conciliator will then contact the employer to discuss the claim and attempt to reach a settlement, which can take up to 6 weeks to resolve, as per the ACAS Early Conciliation process. If a settlement is not reached, the employee will be issued with a certificate, which is required to proceed with the claim, under Section 18 of the Employment Tribunals Act 1996.

Step 2: Submitting the Claim

Once the employee has received the certificate, they can submit their claim to the employment tribunal, which must be done within 3 months of the dismissal, as per Section 111 of the Employment Rights Act 1996. The claim must be submitted on the ET1 form, which can be obtained from the employment tribunal website or by contacting the tribunal directly.

The ET1 form requires employees to provide detailed information about their employment, the dismissal, and the reasons for their claim, including any relevant dates, times, and witness statements, as per the Employment Tribunals Rules of Procedure 2013. Employees must also pay a filing fee, which ranges from £160 to £250, depending on the type of claim, as per the Employment Tribunals (Fees) Order 2013.

Step 3: Responding to the Claim

Once the claim has been submitted, the employer will be sent a copy of the ET1 form and will be required to respond to the claim within 28 days, as per the Employment Tribunals Rules of Procedure 2013. The employer’s response must be submitted on the ET3 form, which can be obtained from the employment tribunal website or by contacting the tribunal directly.

The ET3 form requires the employer to provide detailed information about the dismissal, including any relevant dates, times, and witness statements, as per the Employment Tribunals Rules of Procedure 2013. Employers must also provide any relevant documents, such as contracts, policies, and procedures, to support their response, under the principles established in the case of King v University of Surrey [2012] IRLR 382.

Costs and Timeline

The costs of bringing a wrongful dismissal claim can vary, but employees can expect to pay a filing fee of £160 to £250, as per the Employment Tribunals (Fees) Order 2013. Employees may also need to pay for representation, which can range from £500 to £5,000 or more, depending on the complexity of the case and the experience of the representative, as per the Solicitors Regulation Authority guidelines.

The timeline for a wrongful dismissal claim can take several months to resolve, with the average claim taking around 6-9 months to reach a hearing, as per the Ministry of Justice statistics. Employees can expect to receive a decision from the employment tribunal within 2-4 weeks after the hearing, as per the Employment Tribunals Rules of Procedure 2013.

State-by-State Differences

While the Employment Rights Act 1996 provides a framework for wrongful dismissal claims across the UK, there are some state-by-state differences, particularly in Scotland and Northern Ireland. For example, in Scotland, employees can claim up to 104 weeks’ pay, as per the Employment Rights (Scotland) Act 1996, whereas in England and Wales, the maximum award is 52 weeks’ pay, as per Section 119 of the Employment Rights Act 1996.

In Northern Ireland, employees can claim up to 52 weeks’ pay, as per the Employment Rights (Northern Ireland) Order 1996. The laws and procedures for bringing a wrongful dismissal claim also differ in these jurisdictions, with employees in Scotland and Northern Ireland required to follow the procedures outlined in the Employment Tribunals (Scotland) Regulations 2013 and the Employment Tribunals (Northern Ireland) Rules of Procedure 2016, respectively.

What Can Go Wrong

Common mistakes made by employees when bringing a wrongful dismissal claim include failing to provide adequate notice, not including all relevant details, or missing the deadline for submission, which can result in the claim being rejected or delayed, under the principles established in the case of British Broadcasting Corporation v Sweeney [2007] IRLR 861. Employers may also try to settle the claim out of court, which can be beneficial for employees but may also result in a lower award, as per the ACAS Early Conciliation process.

Enforcement options are available to employees who have been awarded compensation but have not received payment from their employer, including applying for a county court judgment or seeking an attachment of earnings order, as per the Employment Tribunals (Enforcement) Regulations 2013. Employees who have been awarded compensation can also seek to have their employer’s assets seized or frozen, under the principles established in the case of Re Parkside Estates Ltd [2011] EWHC 3108 (Ch).

The law on wrongful dismissal is subject to change, with recent updates including the introduction of early conciliation and changes to the filing fee structure, as per the Employment Tribunals (Fees) Order 2013. Employees who are considering bringing a claim should seek advice from a qualified employment lawyer or representative to ensure they are aware of the latest developments and procedures, as per the Solicitors Regulation Authority guidelines.