This guide is maintained as a current resource for July 2026 and covers only the laws of England and Wales. Information is for general guidance, not legal advice. Consult a qualified solicitor for advice specific to your situation.
Explore UK redundancy and wrongful dismissal law in England and Wales. Learn about statutory rights, contractual notice, claims processes, time limits, tribunal and court options, and practical steps for employees and employers.
Redundancy and wrongful dismissal are distinct legal concepts in UK employment law that can arise when an employment contract ends. Redundancy refers to a specific lawful reason for dismissal linked to the business's needs, while wrongful dismissal is a breach of contract claim typically concerned with notice or contractual procedures. This article explains both concepts, how they interact, relevant rights, claims processes and time limits, and practical considerations for employees and employers.
Understanding Redundancy in UK Law
Redundancy occurs when an employer terminates a contract because work of a particular kind is no longer needed, the business closes or moves, or the workforce must be reduced. It is one of the potentially fair reasons for dismissal under the Employment Rights Act 1996. To qualify for certain redundancy rights such as statutory redundancy pay, an employee usually must have at least two years' continuous service at the date of dismissal. Failure to consult properly or apply fair selection criteria can lead to claims of unfair dismissal, not just redundancy.
Statutory Redundancy Pay
Employees with sufficient qualifying service are entitled to statutory redundancy pay, which is calculated based on age, length of service and weekly pay. This payment is separate from notice pay and accrued holiday pay. A claim for statutory redundancy pay to an employment tribunal must generally be lodged within six months from the relevant date.
Procedural Fairness
Employers are expected to follow a fair redundancy process, including meaningful consultation, genuine selection criteria and consideration of alternative roles. Failure to do this can make the dismissal unfair, even if redundancy is otherwise genuine. Unfair redundancy dismissal claims are made to the employment tribunal and typically require at least two years' service (subject to forthcoming law changes).
What Is Wrongful Dismissal?
Wrongful dismissal arises when an employer breaches express or implied contractual terms when ending employment. It is primarily a contract law claim rather than a statutory employment right. The most common ground for a wrongful dismissal claim is where an employer dismisses an employee without giving the contractual or statutory notice period due.
Typical Scenarios
Examples of wrongful dismissal include:
- Terminating employment without proper notice, as specified in the contract.
- Failing to pay in lieu of notice where the contract allows it.
- Dismissing before a fixed‑term contract expires without legal justification.
- Breaching a contractual procedure for redundancy or disciplinary dismissal.
There is no minimum length of service required to bring a wrongful dismissal claim.
Differences Between Redundancy, Wrongful Dismissal and Unfair Dismissal
- Redundancy is a legal reason for dismissal linked to the employer's business needs.
- Wrongful dismissal is a breach of contract claim focused on contractual rights such as notice.
- Unfair dismissal is a statutory claim available at a tribunal where the dismissal was not fair, proper or reasonable in all circumstances. Generally, employees must have qualifying service (currently two years, subject to statutory reform) to bring an unfair dismissal claim.
Wrongful dismissal often occurs alongside redundancy or unfair dismissal issues but is a separate legal basis for a claim.
Notice Periods and Pay
A key element of wrongful dismissal is the requirement to provide appropriate notice. This can be:
- A contractual notice period agreed between employer and employee.
- If no contractual notice is provided, the statutory minimum applies: one week's notice after one month's service, increasing by one week per year up to 12 weeks after 12 years' service.
Failure to provide the correct notice may give rise to damages equal to the pay and benefits the employee would have received during the notice period.
Legal Processes and Remedies
Employment Tribunal Claims
Wrongful dismissal claims can be brought to an employment tribunal if they arise from the termination of employment. The employee must notify Acas Early Conciliation before lodging most tribunal claims. Tribunal claims for wrongful dismissal must usually be made within three months less one day from the effective date of termination.
The tribunal can award damages for breach of contract, generally capped at around £25,000 for wrongful dismissal cases.
Civil Court Claims
Alternatively, a wrongful dismissal claim can be pursued in the County Court or High Court, where there is no statutory cap on compensation and the limitation period is six years from the date of breach. This route may be preferable for higher value claims or cases where the tribunal time limit has passed.
Interaction With Other Claims
An employee may bring multiple claims arising from the same dismissal, including:
- Statutory redundancy pay (tribunal claim within six months).
- Wrongful dismissal (tribunal or civil court).
- Unfair dismissal (tribunal claim if qualifying service).
- Discrimination claims where relevant. Time limits and qualifying periods differ for each cause of action.
Practical Steps for Employees
- Check your contract for notice periods and redundancy procedures.
- Document key communications and dates concerning the dismissal or redundancy process.
- Notify Acas Early Conciliation to preserve your right to make a tribunal claim.
- Consider whether you have multiple causes of action, such as wrongful dismissal and unfair dismissal.
- Seek legal advice early to understand your options and likely compensation outcomes.
Practical Steps for Employers
- Follow contractual terms precisely, including notice and redundancy procedures.
- Conduct fair redundancy processes, including meaningful consultation and selection.
- Provide clear reasons for dismissal and documentation to support procedural decisions.
- Engage with Acas Conciliation where appropriate to seek early resolution.
- Obtain legal advice on complex dismissals to reduce the risk of tribunal or court claims.
Common Questions
Do I need two years' service to claim wrongful dismissal?
No. Wrongful dismissal claims can be brought regardless of length of service because they are contract law claims.
Can redundancy dismissal be wrongful?
Yes. If the employer fails to give the correct notice or breaches contractual procedures relating to redundancy, a wrongful dismissal claim may arise.
What compensation can I get for wrongful dismissal?
Compensation typically reflects pay and benefits lost during the notice period. In a tribunal, awards are capped; in court there is no cap.
Key Takeaways
Redundancy and wrongful dismissal are separate but potentially overlapping areas of UK employment law. Redundancy is a statutory reason for ending a contract, while wrongful dismissal arises when contractual obligations, especially regarding notice, are breached. Employees and employers must understand the different procedures, time limits and remedies that apply. Careful adherence to contract terms and fair processes can reduce the risk of claims, while prompt legal advice can help individuals make informed decisions about pursuing claims through tribunals or courts.
