Definition
A breach of contract claim that arises when an employer terminates an employee's contract without providing the required notice period or payment in lieu of notice, or dismisses during a fixed-term contract without justification.
UK Context
Wrongful dismissal is a common law claim based on breach of contract. It can be brought in the employment tribunal (capped at 25,000 pounds) or the county or High Court (uncapped). There is no qualifying service requirement, unlike unfair dismissal which requires two years' continuous service. The statutory minimum notice period is one week per year of service, up to a maximum of 12 weeks.
Best Practices
- Always check the employment contract for the notice period before commencing any dismissal
- If dismissing for gross misconduct without notice, ensure the conduct genuinely amounts to a repudiatory breach
- Consider offering payment in lieu of notice (PILON) if you want the employee to leave immediately
- Ensure the employment contract includes a clear PILON clause to give the employer the right to make payment instead of notice
- Document the reasons for any summary dismissal thoroughly in case of a subsequent claim
Frequently Asked Questions
What is the difference between wrongful and unfair dismissal?
Wrongful dismissal is a breach of contract claim about whether the correct notice was given. Unfair dismissal is a statutory claim about whether the employer had a fair reason and followed a fair process. An employee can bring both claims simultaneously. Wrongful dismissal has no qualifying service requirement, while unfair dismissal requires two years' continuous service.
Can I claim wrongful dismissal from day one?
Yes, unlike unfair dismissal which requires two years' continuous service, wrongful dismissal is a contract claim that can be brought from the first day of employment. If your employer breaches the terms of your contract by failing to give proper notice, you have a claim regardless of your length of service.
What compensation can I receive for wrongful dismissal?
Damages are typically limited to the value of the notice period you should have received, including salary, benefits, pension contributions, and any other contractual entitlements during that period. Unlike unfair dismissal, there is no basic award and no compensation for manner of dismissal or future loss beyond the notice period.