The 2 Year Unfair Dismissal Rule

Did you know the so-called two-year rule for unfair dismissal claims is actually a one year and 51 weeks rule?  (Not quite as catchy, is it?)

Currently (although changes are on the horizon with the new Labour government), employees with less than two years of service cannot bring an ordinary unfair dismissal claim to an employment tribunal.

However, when calculating an employee’s length of service, judges will add the statutory one-week notice period to the employee’s service. This addition could push them over the two-year mark.

Many employers have been caught out by this, mistakenly believing they were within the “safe” two-year limit to dismiss an employee without following a formal process, only to find the statutory notice period had pushed the employee’s length of service over the line.

If you’re considering a short-service dismissal, you should ensure the employee’s service is less than one year and 51 weeks. Otherwise, you may find yourself exposed to the full liability of an unfair dismissal claim.