What is unfair dismissal?

Unfair dismissal is when an employment contract is terminated without the employer having a demonstratable fair reason to do so, as per the Employment Rights Act. The five fair reasons for dismissal are conduct, capability, redundancy, statutory illegality and SOSR (some other substantial reason). Unfair dismissal is also when an employer did have one of the five fair reasons, but failed to follow the correct procedure. Employers should therefore have a clear defined disciplinary process (in line with ACAS code) confirming the steps in place for dealing with perceived employee misconduct, which includes formal and informal action depending on the severity of the transgression, and outlining what the employee rights are within the process.