Unfair dismissal & discrimination claims

Two very different claims, one tribunal — what each requires, the deadlines that end them, and the steps that come first

When work goes wrong — a dismissal that felt unjust, treatment that singled you out — the law offers two quite different routes, often confused because they are heard in the same place. Unfair dismissal and discrimination have different requirements, different remedies and, crucially, very different limits on what you can recover. Knowing which claim (or both) actually fits your situation is the first and most important step. This note explains them in plain terms. It is general information, not advice on your case.

Two claims, two different tests

Unfair dismissal

A statutory claim that you were dismissed without a fair reason or a fair process. It generally requires two years’ continuous service, applies only to employees, and compensation is capped (a basic award plus a compensatory award subject to a statutory maximum).

Discrimination

A claim that you were treated worse because of a protected characteristic. It needs no minimum service, can be brought by employees, workers and job applicants, and compensation is uncapped — and can include an award for injury to feelings.

That difference in the cap is why the two claims are worth so different an amount — and why a dismissal that is also discriminatory is a materially stronger position than one that is ‘merely’ unfair.

Unfair dismissal, in outline

To defend a dismissal as fair, an employer must show both a fair reason and a fair process. There are five potentially fair reasons: conduct, capability, redundancy, illegality, and ‘some other substantial reason’. Even with a fair reason, a dismissal can be unfair if the procedure was not — no proper investigation, no fair hearing, no right of appeal.

—Automatically unfair dismissals need no qualifying service at all — for example dismissal for whistleblowing, for asserting a statutory right, for pregnancy, or for trade union reasons.
—Constructive dismissal — where you resign in response to a fundamental breach of contract by the employer — counts as a dismissal, but is hard-fought and turns on acting promptly.
—Remedies are compensation in almost every case; reinstatement is available in theory but rare in practice.

Discrimination, in outline

The Equality Act protects nine protected characteristics: age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex, and sexual orientation. Discrimination takes several forms:

Direct discrimination

Being treated less favourably because of a protected characteristic.

Indirect discrimination

A neutral-looking policy that puts people who share a characteristic at a particular disadvantage, and cannot be objectively justified.

Harassment & victimisation

Unwanted conduct related to a characteristic that violates dignity; and being punished for having complained about discrimination, or for supporting someone who did.

Discrimination is rarely admitted and seldom documented, so the law helps: once you prove facts from which discrimination could be inferred, the burden shifts to the employer to prove a non-discriminatory explanation. Building that initial picture from the evidence is where these claims are won or lost.

The deadlines that quietly end claims

Employment claims have exceptionally short limits. The general rule is three months less one day from the act complained of — the dismissal, or the discriminatory act. You must start ACAS Early Conciliation before issuing, which pauses the clock, but the underlying deadline is unforgiving and tribunals rarely extend it. If you are anywhere near this window, treat it as urgent: a strong claim brought a day late is worth nothing.

The steps that come first

Most employment disputes are resolved well before a hearing, and the route you take early shapes the result:

Raise it properly

A written grievance, and using any appeal, both matter to the merits and can affect compensation. The paper trail you create now is the evidence later.

The protected conversation & settlement agreement

Many employment relationships end by negotiated exit under a settlement agreement — a clean, confidential financial settlement in exchange for waiving claims. See our separate note, Settlement Agreements, where the employer usually pays for your advice.

Value the claim honestly

A realistic schedule of loss — lost earnings, the injury-to-feelings band, pension — tells you what the claim is truly worth, and anchors any negotiation.

Where we come in

A fixed-fee view on which claims you actually have, their realistic value, and the deadline you are working to is the step that turns a distressing situation into a plan — usually while there is still time to resolve it without a hearing. From there the work is defined and priced up front: the grievance or response, the settlement negotiation, or the tribunal claim and advocacy itself. For how the hearing process works end to end, see Anatomy of an Employment Tribunal Case.

This note is general information about unfair dismissal and discrimination claims in England and Wales and does not constitute advice on a particular case. Strict time limits apply and the law is detailed; take advice early.

Barraj Legal — a trading style of Rhys Johns, a barrister authorised & regulated by the Bar Standards Board. Sophia House, 28 Cathedral Road, Cardiff CF11 9LJ