What Is the Limitation Period for a Wrongful Dismissal Claim After Redundancy?

A wrongful dismissal claim after redundancy arises where an employee alleges breach of contract in the termination process. This typically involves claims such as dismissal without proper notice, failure to pay notice pay, or termination in breach of contractual terms, even where redundancy is the stated reason.

Understanding the limitation period is essential because strict time limits apply, and missing them can prevent a claim from being pursued. The applicable time limit depends on whether the claim is brought in the Employment Tribunal or the civil courts.

What Is Wrongful Dismissal in a Redundancy Context?

Wrongful dismissal is a contractual claim. It focuses on whether the employer complied with the employment contract when ending employment.

In redundancy situations, wrongful dismissal may arise where:

• The employer fails to give contractual or statutory notice
• Payment in lieu of notice (PILON) is not properly made
• Contractual redundancy procedures are not followed
• The dismissal breaches express or implied contractual terms

It is distinct from unfair dismissal, which is based on statutory employment rights rather than contract.

Limitation Period in the Employment Tribunal

The general rule: 3 months less 1 day

Where a wrongful dismissal claim is brought in the Employment Tribunal (often alongside unfair dismissal or other termination claims), the limitation period is:

Three months less one day from the effective date of termination

The effective date of termination is usually:

• The last day of employment, or
• The end of the notice period (if notice is given or deemed given)

This is confirmed by standard tribunal practice for termination-related claims.

Important limitation: tribunal jurisdiction cap

Employment Tribunals can only hear breach of contract claims in limited circumstances. Typically:

• Claims must arise or be outstanding on termination
• Compensation is capped (commonly £25,000 for breach of contract claims in tribunal)

As a result, many wrongful dismissal claims are instead pursued in the civil courts.

Limitation Period in the Civil Courts

Six years for breach of contract

If a wrongful dismissal claim is brought in the County Court or High Court, the limitation period is:

Six years from the date of breach of contract

This is based on the Limitation Act 1980.

In redundancy-related wrongful dismissal claims, the breach usually occurs on the termination date, meaning the six-year period generally starts from:

• The date employment ended without proper notice, or
• The date notice should have expired under the contract

This route is commonly used where:

• The claim exceeds the tribunal cap
• The claimant is out of tribunal time limits
• The dispute is purely contractual

ACAS Early Conciliation and Time Limits

Before issuing an Employment Tribunal claim, ACAS Early Conciliation is normally required.

Key points:

• The limitation clock is paused while ACAS Early Conciliation is ongoing
• Once conciliation ends, the claimant receives a certificate
• A short extension applies to allow claim submission after the process

However, ACAS does not extend the underlying statutory time limits beyond this pause.

When Time Starts Running in Redundancy Cases

Determining the start date is critical and can be complex in redundancy dismissals.

The limitation period usually begins when:

• Employment ends (dismissal date), or
• Contractual notice should have expired (if notice is wrongfully withheld)

Where redundancy involves phased dismissals, multiple employees, or notice payments, the exact date may require careful legal analysis of the termination timeline.

Extensions and Late Claims

Employment Tribunal discretion

Tribunals have limited discretion to extend time limits. A late claim may proceed only if:

• It was not reasonably practicable to bring the claim in time, and
• The claim was filed within a reasonable period afterwards

This threshold is strictly applied.

Civil court limitation

Civil courts have limited discretion to extend the six-year period, except in specific statutory exceptions.

Wrongful Dismissal vs Unfair Dismissal After Redundancy

These claims often arise together but differ significantly:

• Wrongful dismissal: breach of contract (notice, pay, contractual terms)
• Unfair dismissal: fairness of the redundancy process under statutory law

Each has separate limitation rules, although both commonly start from the termination date.

Practical Steps When Considering a Claim

Where redundancy leads to suspected wrongful dismissal, the usual steps include:

1. Identify the termination date and notice terms in the contract
2. Establish whether proper notice or payment was provided
3. Confirm whether Employment Tribunal or civil court jurisdiction applies
4. Calculate limitation deadlines, including ACAS Early Conciliation pauses
5. Issue the claim within time limits

Common Issues Affecting Time Limits

Several factors frequently complicate limitation calculations:

• Incorrect or disputed termination dates
• Payment in lieu of notice clauses
• Extended notice periods in senior contracts
• Ongoing internal grievance or appeal procedures (which do not usually pause time limits)
• Overlapping unfair dismissal and breach of contract claims

Key Takeaways

The limitation period for a wrongful dismissal claim after redundancy depends on the forum:

• Employment Tribunal: 3 months less 1 day from termination
• Civil courts: 6 years under the Limitation Act 1980

Most claims are strictly time-barred if these limits are missed, with only limited scope for extensions in tribunal proceedings. Early calculation of deadlines and correct identification of the termination date are central to preserving legal rights.