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.
A detailed guide to wrongful termination in England and Wales, explaining what counts as wrongful dismissal, how it differs from unfair dismissal, contractual notice requirements, remedies, key time limits, and practical steps to consider for employees and solicitors.
Wrongful termination, often referred to in UK legal contexts as wrongful dismissal, is a type of employment dispute that arises when an employer ends an employee's contract in breach of its terms. It is distinct from unfair dismissal and other dismissal-related claims, and understanding the differences is critical to recognising what counts as wrongful termination under law in England and Wales.
This article explains the legal framework governing wrongful termination, what conduct by an employer can give rise to a claim, the remedies available, key time limits, and when an employee might consider making a claim. It is intended to inform employees, students, solicitors, and members of the public; it does not constitute personalised legal advice.
What Is Wrongful Termination?
In English law, wrongful termination means dismissing an employee in breach of the terms of their employment contract. The central issue in a wrongful termination claim is not whether the dismissal was fair in a statutory sense, but whether it complied with the contractual rights and obligations agreed between employer and employee.
A wrongful termination claim is a contractual claim (a form of breach of contract), not a statutory claim under employment rights legislation. Because it arises from the contract terms, an employee can bring it even if they have not yet gained statutory unfair dismissal rights.
Contractual Basis: What Terms Matter?
To assess whether a termination was wrongful, the focus is on the employment contract and what it says about ending employment. Key contractual and statutory terms include:
Notice Period
Most employment contracts contain a notice clause specifying the period of notice an employer must give before ending employment. Wrongful termination often arises where:
- An employer dismisses without giving any notice.
- An employer gives less notice than the contractual entitlement.
- An employer fails to provide pay in lieu of notice if contractually permitted.
If notice is not given as required, the employer is in breach of contract.
Statutory Minimum Notice
Even in the absence of a contractual notice term, statutory minimum notice applies under the Employment Rights Act 1996:
- After one month's service, employees are entitled to at least one week's notice.
- After two years' service, the entitlement increases to one week per year of service, up to a maximum of 12 weeks.
Failure to provide statutory notice can also form the basis for a wrongful termination claim.
Fixed-Term Contracts and Procedural Terms
Wrongful termination can also occur if:
- A fixed-term contract ends before its expiry without lawful justification.
- Contractual disciplinary, redundancy, or termination procedures are not followed where they are expressly written into the contract.
Wrongful vs Unfair Dismissal
It is essential to distinguish wrongful termination from other types of dismissal claims:
- Wrongful termination (wrongful dismissal): A contractual claim focusing on breach of contract terms at termination. No minimum service length is needed.
- Unfair dismissal: A statutory claim under the Employment Rights Act 1996 requiring a qualifying period of service (currently two years, but government reforms propose reducing this to six months from 2027) and focusing on whether the dismissal was fair in reason and procedure.
- Constructive dismissal: A claim where an employee resigns in response to a fundamental breach of contract by the employer, effectively treating the contract as terminated by the employer.
An employee may be able to pursue both unfair and wrongful claims simultaneously where appropriate.
Examples of Wrongful Termination
The most common situations that count as wrongful termination include:
- Dismissal without contractual or statutory notice.
- Failure to pay wages or benefits due during the notice period.
- Ending a contract prematurely without lawful contractual or statutory grounds.
- Disregarding express contractual procedures for termination.
It is not wrongful termination if the employer dismisses for gross misconduct and has lawful contractual or statutory rights to dismiss immediately without notice.
Remedies and Compensation
If a wrongful termination is established, the primary remedy is damages to compensate the employee for losses caused by the breach of contract. These typically include:
- Wages and benefits payable for the notice period.
- Other direct financial losses caused by the breach (such as lost bonuses, pension benefits, car allowance, or holiday pay during what would have been the notice period).
Employment tribunal awards for wrongful dismissal have a cap of £25,000. Employees seeking compensation above this limit may pursue a claim in the civil courts (County Court or High Court), where there is no statutory cap, though longer time limits apply.
Time Limits for Claims
To bring a wrongful termination claim:
- A claim to the employment tribunal must be filed within three months less one day from the date employment ends.
- A claim in the civil courts must generally be started within six years of the breach of contract (the dismissal date).
These time limits are strict. Missing them may prevent the claim from being heard.
Practical Steps Before Making a Claim
If you believe you have been wrongfully terminated, consider the following steps:
- Check your contract to identify notice entitlements and termination procedures.
- Collect correspondence (letters, emails, contracts) around your dismissal.
- Calculate your losses (notice pay, benefits, etc.).
- Contact ACAS or seek legal advice to understand your options and time limits.
- Explore early conciliation through ACAS before filing a tribunal claim (this is often required).
Early advice helps clarify whether your case is best pursued through the tribunal or civil courts.
Final Thoughts
Wrongful termination in England and Wales arises when an employer ends employment in breach of contractual terms, most commonly by failing to give the required notice or pay in lieu of notice. It is a contractual claim that can be brought regardless of service length and focuses on enforcing the contract's terms rather than statutory fairness. Remedies are usually financial, based on actual losses, and claims must be brought promptly within strict time limits. Understanding your contract and legal rights is crucial when considering a claim.
