What must a UK dismissal letter say?

There is no prescribed form, but section 98 of the Employment Rights Act 1996 requires the employer to be able to show the reason and that it falls within capability or qualifications, conduct, redundancy, a statutory restriction, or some other substantial reason such as to justify dismissal. Section 92 separately entitles an employee with not less than two years' continuous employment to a written statement of the reasons for dismissal within fourteen days of a request, and that statement is admissible in evidence in any proceedings.

What happens if an employer ignores the Acas Code?

Section 207A of the Trade Union and Labour Relations (Consolidation) Act 1992 allows an employment tribunal to increase an award by no more than 25 per cent where the employer has unreasonably failed to comply with a relevant Code of Practice, and to reduce it by no more than 25 per cent where the employee has. The Acas Code of Practice on Disciplinary and Grievance Procedures is the Code that applies to dismissals for conduct or capability.

How much notice must a termination letter give?

At least the statutory minimum in section 86 of the Employment Rights Act 1996: one week where continuous employment is one month or more but under two years, then one week for each year of continuous employment, to a maximum of twelve weeks. A contract may give more. Section 98(4) then asks whether the employer acted reasonably in treating the reason as sufficient, taking account of the size and administrative resources of the undertaking.

Termination Letter in the UK

In Great Britain a dismissal letter is measured against section 98 of the Employment Rights Act 1996 and the Acas statutory Code of Practice. The letter carries its own statutory weight: an employee with two years' service can demand written reasons within fourteen days, and an unreasonable failure to follow the Acas Code lets a tribunal move the award by up to 25 per cent either way.

Download the UK drafting checklist (.docx)Where to read UK law

Governing law

Section 98 of the Employment Rights Act 1996 governs the fairness of a dismissal in Great Britain, and the Acas Code of Practice on Disciplinary and Grievance Procedures sets the procedure a tribunal takes into account.

Employment Rights Act 1996, s.98

What a termination letter has to contain in the UK

The employer must show the reason for dismissal and that it is capability or qualifications, conduct, redundancy, a statutory restriction, or some other substantial reason such as to justify dismissal. Fairness then turns on whether the employer acted reasonably in treating that reason as sufficient, judged in the circumstances including the size and administrative resources of the undertaking.
Employment Rights Act 1996, s.98(1), (2) and (4)
An employee with two years' continuous employment is entitled on request to a written statement of the reasons for dismissal within fourteen days. No qualifying period applies, and no request is needed, where the employee is dismissed while pregnant or where maternity or adoption leave ends by reason of the dismissal.
Employment Rights Act 1996, s.92
The letter must honour at least the statutory minimum notice: one week where continuous employment is one month or more but under two years, then one week per year of continuous employment up to twelve weeks.
Employment Rights Act 1996, s.86
Where a relevant Code of Practice applies to the dispute, a tribunal may increase an award by no more than 25 per cent if the employer unreasonably failed to comply with it, and reduce an award by no more than 25 per cent if the employee did.
Trade Union and Labour Relations (Consolidation) Act 1992, s.207A
The Acas Code of Practice on Disciplinary and Grievance Procedures is the Code employment tribunals take into account in dismissal cases, and the Code against which the 25 per cent adjustment is measured.
Acas Code of Practice on disciplinary and grievance procedures

Form, notarisation and registration

A written statement of reasons given under section 92 is admissible in evidence in any proceedings, so the wording of the letter is later read against the employer.
Employment Rights Act 1996, s.92

What catches drafters out

Treating a short-service dismissal as risk free. Discrimination on any of the nine protected characteristics in section 4 of the Equality Act 2010 has no qualifying period, so a letter that is safe on unfair dismissal grounds can still expose the employer.
Equality Act 2010, s.4
Building a template on the two-year qualifying period without a review date. Section 108 of the Employment Rights Act 1996 still reads two years today, but the government's timeline states the reduction to six months applies to dismissals from 1 January 2027.
GOV.UK, Plan to Make Work Pay and Employment Rights Act: timeline update
Using a Great Britain letter for a Northern Ireland employee. Employment law in Northern Ireland runs on the Employment Rights (Northern Ireland) Order 1996, not the Employment Rights Act 1996.
Employment Rights (Northern Ireland) Order 1996, art. 33