Unfair dismissal occurs when an employee is terminated from their job in a harsh, unreasonable, or unlawful manner. In many jurisdictions, employees are legally protected from being dismissed without valid reason or without being given due process.

Unfair dismissal typically applies to permanent employees, though in some cases, fixed-term and part-time workers may also be covered by labor laws.

Examples of Unfair Dismissal

An employee’s termination may be considered unfair if it happens:

• Without a valid reason (such as poor performance, redundancy, or misconduct)
• Without a fair and transparent disciplinary or dismissal process
• Because of discrimination (e.g., based on age, gender, race, religion, disability, or pregnancy)
• For exercising a legal right (e.g., taking maternity/paternity leave, requesting flexible work, joining a union, or filing a workplace complaint)
• As retaliation for whistleblowing or reporting employer misconduct

Unfair vs. Wrongful Dismissal

While the terms are sometimes used interchangeably, there are differences:

• Unfair dismissal focuses on whether the employer had a fair reason and followed due process in terminating employment.
• Wrongful dismissal is a contractual issue where an employer breaches the employment contract (e.g., failing to give proper notice or pay in lieu of notice).

Employee Rights in Cases of Unfair Dismissal

Employees who believe they’ve been unfairly dismissed may be entitled to:

• Reinstatement (getting their old job back)
• Compensation (monetary damages for lost wages and benefits)
• Negotiated settlements (such as severance pay or references)

The exact remedies depend on local labor laws and whether the employee takes their case to an employment tribunal, labor court, or arbitration body.

Employer Responsibilities to Avoid Unfair Dismissal

To minimize the risk of claims, employers should:

• Clearly document valid reasons for termination
• Follow proper disciplinary and grievance procedures
• Comply with notice period requirements
• Ensure dismissals are free from discrimination or retaliation
• Provide opportunities for employees to improve before resorting to termination (where applicable)

Why Does Unfair Dismissal Matter?

• For employees – It ensures workplace rights and protections are upheld.
• For employers – Avoiding unfair dismissal claims reduces legal risks, protects brand reputation, and helps maintain trust with remaining employees.

Bottom line: Unfair dismissal is more than just ending an employment relationship, it’s about how that decision is made. Employers must act fairly, lawfully, and transparently to protect both their business and their employees’ rights.