You can dismiss an employee without notice or notice pay for gross misconduct, but you must still follow a fair procedure. Sending someone home, removing access and stopping payments may feel like one decision, but each action needs justification.
For HR teams, the questions are whether notice pay is owed and whether the dismissal is fair. Start by separating those two issues.
Key takeaways
- Gross misconduct can justify summary dismissal, but doesn’t remove procedural duties.
- Paying notice doesn’t automatically make a dismissal fair.
- Short service doesn’t remove contractual rights or all tribunal risks.
This guidance covers Great Britain. Northern Ireland has separate legislation.
When is dismissal without notice lawful?
Gross misconduct needs evidence
Theft, fraud, violence, serious negligence and serious safety breaches can justify dismissal without notice. The conduct must be serious enough to amount to a fundamental breach of contract.
A handbook label isn’t conclusive. Consider what happened, the employee’s explanation, training, previous practice and mitigating circumstances. Ordinary mistakes or poor performance won’t normally meet that threshold.
A fair procedure still matters
Follow a fair disciplinary procedure: investigate impartially, including evidence that supports the employee. Explain the allegations, disclose relevant evidence and warn that dismissal is possible.
Hold a disciplinary hearing, allow the statutory right to a companion, consider the response, then confirm reasons and appeal rights in writing.
The Acas Code of Practice sets the benchmark. Unreasonable employer failure to follow it can increase relevant compensation by up to 25%.
What notice pay is owed?
Give the longer of statutory notice and the contractual notice period unless summary dismissal is justified. Our guidance on UK employment contract terms explains the contractual starting point.
The statutory notice period applies even where the contract says nothing.
| Continuous service | Minimum employer notice |
|---|---|
| One month to under two years | One week |
| Two to under 12 years | One week per completed year |
| 12 years or more | 12 weeks |
Contractual notice can exceed these figures, including before one month’s service.
At £600 weekly pay, four weeks’ contractual notice means £2,400 gross salary, plus applicable contractual benefits. Payment in lieu of notice, or pay in lieu of notice, can end employment immediately under an appropriate contract clause. It’s taxed normally.
Even after gross misconduct, pay earned wages and accrued statutory holiday.
Wrongful and unfair dismissal carry different risks
Wrongful dismissal concerns contractual rights
Wrongful dismissal is a claim for breach of contract, usually involving unpaid notice or benefits. It has no minimum service requirement and concerns contractual entitlement, not whether the reason for dismissal was fair.
A reasonable belief in misconduct may support a fair dismissal. To defend a claim for unpaid notice, the employer must show that the conduct actually justified summary dismissal.
Claims for contractual damages in an employment tribunal are capped at £25,000. Larger claims go to the County Court or High Court in England and Wales, normally within six years.
Unfair dismissal concerns reason and process
The employer must establish a potentially fair reason, such as conduct, capability or qualifications, redundancy, breach of a legal requirement, or some other substantial reason. A fair reason alone isn’t enough; the employer must also act reasonably.
Ordinary unfair dismissal generally requires two years’ continuous service. The qualifying period is scheduled to fall to six months for dismissals effective from 1 January 2027.
Whistleblowing, pregnancy or maternity, and protected health and safety activities are among the reasons that can make a dismissal automatically unfair, with no qualifying service period.
Compensation includes a basic award based on age, service and capped weekly pay, plus compensation for losses. An award of around £500 for lost statutory rights may also be included.
For dismissals from 6 April 2026, the ordinary compensatory award cap is £123,543 or 52 weeks’ gross pay, whichever is lower. The cap is due to end on 1 January 2027.
Discrimination compensation under the Equality Act 2010 is uncapped. A discriminatory dismissal can support both claims, subject to eligibility.
Deadlines and practical next steps
For dismissals before 1 October 2026, the limitation period for an employment tribunal claim is usually three months less one day. For dismissals on or after that date, it’s six months less one day.
Employees must normally notify Acas for Early Conciliation before making a claim. This affects deadline calculations, but an internal appeal doesn’t stop the clock.
Employees should request written reasons, appeal promptly and keep contracts, payslips and correspondence. Eligible employees can require written reasons within 14 days.
Employers should preserve evidence, hear appeals impartially and give payroll a written breakdown of sums owed.
Frequently asked questions
Does redundancy remove notice obligations?
No. Redundancy requires a genuine reason, fair selection, consultation and consideration of suitable alternative employment. Complete consultation before issuing dismissal notice, then provide notice or appropriate payment.
Priority rights to vacancies need separate treatment from competitive selection. A four-week statutory trial period normally applies when alternative employment has different terms. Consultation time and notice time need separate budgets.
What is constructive dismissal?
Constructive dismissal occurs when an employee resigns because of the employer’s fundamental contractual breach. The resignation must result from that breach. Employees should get legal advice before resigning.
Keep the decision, evidence and payments connected
Immediate termination doesn’t remove your process or payment obligations. Record why dismissal is justified and what remains payable.
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