Journey
Dismissing an employee under new rules
Step-by-step guidance for lawfully dismissing an employee under ERA 2025 rules, including fire and rehire restrictions and 6-month qualifying period. Covers fair procedure, ACAS Code compliance, and risk assessment.
Dismissing an employee: ERA 2025 rules
This journey guides you through the process of lawfully dismissing an employee under the Employment Rights Act 2025 rules. The new rules are more restrictive and the consequences of unfair dismissal are greater.
Time needed: 20 minutes to complete.
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Is this a dismissal?
First, confirm that what you are planning is legally a dismissal:
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Check service length
The employee's length of service affects their rights.
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Identify the reason for dismissal
You must have a fair reason for dismissal. Check which applies:
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Check for automatically unfair grounds
Some dismissals are automatically unfair regardless of the reason or procedure. Check none apply:
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Follow fair procedure
Even with a fair reason, you must follow a fair procedure. The ACAS Code of Practice sets out the minimum requirements.
For conduct or capability dismissals:
For redundancy dismissals:
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Fire and rehire restrictions
From 1 October 2026, fire and rehire is automatically unfair dismissal.
Fire and rehire employer guide
Detailed guidance on fire and rehire restrictions
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Document everything
Maintain comprehensive records in case of tribunal claim (remember 6-month time limit from October 2026):
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Assess compensation risk
If the dismissal is found unfair, the potential compensation is:
Final checklist before dismissing
Next steps
- If all boxes are checked, proceed with dismissal following your procedure
- If any boxes are unchecked, review the issue before proceeding
- For complex cases, seek legal advice
Understanding unfair dismissal
Full guide to unfair dismissal law
Unfair dismissal: new rules for employers
ERA 2025 unfair dismissal changes
ACAS Code of Practice on Disciplinary and Grievance (opens in a new tab)
Statutory Code for fair procedures