Wrongful Dismissal Basics

Many people confuse wrongful and unfair dismissal. They are distinct legal claims:

• Wrongful dismissal is a breach of contract claim. It arises when your employer terminates your employment without giving you the notice required by your contract (or the statutory minimum if longer). It says nothing about the fairness of the dismissal — only about whether the correct procedure (notice) was followed.
• Unfair dismissal is a statutory claim under the Employment Rights Act 1996. It requires two years of continuous employment (with exceptions) and asks whether the reason for dismissal was fair and whether a fair procedure was followed.

You can bring both claims simultaneously if both apply to your situation. For example, if you are summarily dismissed for gross misconduct without notice, but you dispute that your conduct amounted to gross misconduct, you could claim both wrongful dismissal (for the unpaid notice) and unfair dismissal (for the unfair reason/procedure).

Your entitlement to notice is the longer of:

• The notice period in your employment contract, or
• The statutory minimum notice period under the Employment Rights Act 1996

The statutory minimum is:

• One week's notice after one month's continuous employment
• One additional week for each complete year of employment, up to a maximum of 12 weeks

If your employer fails to give you the required notice and does not pay you in lieu (garden leave or a payment in lieu of notice — PILON), they are in breach of contract. The value of your wrongful dismissal claim is broadly equivalent to the pay you would have received during your notice period.

An employer can lawfully dismiss without notice for gross misconduct — but what constitutes gross misconduct must be assessed objectively. If the employer cannot show the conduct was genuinely gross, the dismissal may still be wrongful.

Wrongful dismissal can be claimed in two forums:

• Employment Tribunal: Quick, free, and no qualifying period of employment needed. Compensation is capped at £25,000. The time limit is three months less one day from the effective date of termination (after going through Acas Early Conciliation).
• Civil courts (County Court or High Court): For larger claims (above £25,000) or those outside the Tribunal's jurisdiction. The limitation period is six years. Court fees apply but compensation is not capped.

For most employees, the Employment Tribunal is the more accessible and appropriate route. You must notify Acas and complete Early Conciliation before lodging a Tribunal claim.

Note that wrongful dismissal compensation is limited to actual financial loss — what you would have earned during the notice period, less any earnings from new employment during that period. It does not compensate for the unfairness of the dismissal.