Wrongful Dismissal UK: What It Means & Your Rights

Overview

Wrongful dismissal is, at heart, a breach of contract claim. It arises when an employer ends the employment relationship in a way that does not follow the terms agreed in the employment contract, most commonly by failing to give the notice period the contract requires.

It is not about whether the dismissal was fair or reasonable in a broader sense, which is the territory of unfair dismissal under the Employment Rights Act 1996. It is narrower and more technical: did the employer do what the contract said they would do when ending the job?

If the answer is no, and the employee has suffered a loss as a result, a wrongful dismissal claim may be available. Crucially, there is no minimum service requirement to bring a wrongful dismissal claim, which sets it apart from unfair dismissal.

Claims can be pursued in the Employment Tribunal (subject to a cap on damages) or in the civil courts, where higher-value claims are usually brought.

Key steps

1. Check your contract carefully. Pull out your written employment contract and read the notice provisions, any clause on payment in lieu of notice, and anything covering summary dismissal. The contract is the starting point for any wrongful dismissal claim because the question is whether its terms were breached.
2. Work out what you should have received. Identify the notice period you were contractually entitled to, and list every benefit that would have accrued during that period. This can include basic salary, pension contributions, private medical cover, car allowance, and bonuses that are measurable rather than purely discretionary.
3. Consider whether gross misconduct is being alleged. If your employer has dismissed you summarily on the basis of gross misconduct, a wrongful dismissal claim generally fails if the allegation is well founded. Think honestly about the facts and any evidence the employer may rely on before investing time and cost in a claim.
4. Choose the right forum. Smaller claims are often brought in the Employment Tribunal, which has a statutory cap on contract-based awards. Higher-value claims, particularly for senior employees with long notice periods or significant share options, are typically brought in the County Court or High Court where no such cap applies.
5. Act within the time limits. Wrongful dismissal claims have strict deadlines that depend on the forum you choose. Tribunal claims must generally be started within three months of the dismissal, while civil court claims follow longer contract limitation periods. Getting guidance early avoids losing the right to claim altogether.