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.
Comprehensive guide to wrongful dismissal in England and Wales, explaining how contractual breach dismissals differ from unfair dismissal, who can bring a claim, procedural steps, time limits and how compensation is calculated.
Wrongful dismissal is a contractual claim that can be pursued when an employer terminates an employee's contract in breach of its terms. It is distinct from unfair dismissal, which is a statutory claim based on reasonableness and procedural fairness under UK employment law. This article explains in clear, step‑by‑step terms what wrongful dismissal means in the context of the employment tribunal system in England and Wales, who can bring a claim, what it involves, relevant time limits and how possible remedies are calculated.
What Is Wrongful Dismissal?
A wrongful dismissal claim arises when an employer ends a worker's employment in breach of the contract of employment. The focus of the claim is the breach of contractual rights - most commonly the right to receive proper notice or pay in lieu of notice - rather than whether the dismissal was fair in a broader statutory sense. The central legal question is whether the employer acted in contravention of a contractual obligation when dismissing the employee.
This type of claim can be made whether the worker qualifies for statutory protections such as unfair dismissal or not, and it does not depend on length of service (except in certain narrow circumstances where notice entitlement arises).
How Wrongful Dismissal Differs from Unfair Dismissal
Wrongful dismissal and unfair dismissal are often confused, but they are fundamentally different:
- Wrongful dismissal is a contractual breach claim: it is concerned solely with contractual terms, such as notice, and can be brought from day one of employment where contractual rights exist.
- Unfair dismissal is a statutory claim: it requires a qualifying period of service (traditionally two years, soon to change) and focuses on whether the dismissal was for a fair reason and followed a fair process.
A wrongful dismissal claim may be brought alongside an unfair dismissal claim when both contractual and statutory issues arise, provided the procedural requirements are met.
When a Wrongful Dismissal Can Occur
Breach of Notice
The most common circumstance giving rise to wrongful dismissal is the employer's failure to give proper notice as required by the contract. Notice may be:
- Express, specified in the written terms of the contract; or
- Implied, such as a contractual term inferred from custom or practice; or
- Statutory minimum, where the contract is silent but the Employment Rights Act 1996 implies a minimum notice period based on length of service.
If an employer terminates the employment without giving the notice owed, and does not pay a lawful payment in lieu of notice (PILON) where the contract allows for it, the dismissal is likely to be wrongful.
Fixed‑Term Contracts
Where an employee is engaged on a fixed‑term contract, ending the contract before its specified expiry without a contractual right to do so can also constitute wrongful dismissal if it breaches the agreed terms.
Breach of Contractual Procedure
Some contracts contain express procedures governing disciplinary, redundancy or other internal processes. If an employer fails to follow a contractual procedure that a tribunal considers a term of the contract, the employee's dismissal in breach of that term can give rise to a wrongful dismissal claim. This may include cases where a contractual disciplinary process was ignored by the employer.
Who Can Bring a Wrongful Dismissal Claim
Any individual with a contract of employment can bring a wrongful dismissal claim if their dismissal breaches that contract. Unlike unfair dismissal, there is no minimum period of employment required to bring a wrongful dismissal claim.
Claims may be brought in an employment tribunal or in the civil courts (such as the County Court or High Court). In tribunals, the maximum value of wrongful dismissal damages is limited; larger claims are typically brought in the civil courts.
Time Limits and Procedure
The general time limit for bringing a wrongful dismissal claim in the employment tribunal is three months minus one day from the date of termination of the employment contract. This is the same basic limit that applies to unfair dismissal and many other tribunal claims.
Before submitting a wrongful dismissal claim to a tribunal, potential claimants must usually notify the Advisory, Conciliation and Arbitration Service (Acas) and pursue early conciliation. This process can extend the time available to lodge the tribunal form (ET1) by pausing the statutory deadline while conciliation is explored. Failure to complete early conciliation can lead to a claim being rejected. (Acas early conciliation requirement, generally available on government and Acas guidance.)
Remedies and Damages
The primary remedy in a wrongful dismissal claim is damages for loss suffered because of the contractual breach. This ordinarily reflects:
- Basic pay and benefits that would have been earned during the notice period owed; and
- Other contractual benefits (for example bonuses, pension contributions) that would have accrued during that period.
In an employment tribunal, claim values are usually capped at £25,000 for wrongful dismissal damages, although this cap may vary over time and may not apply to claims brought in higher civil courts.
Damages do not compensate for broader statutory rights (such as loss of a job itself or injury to feelings) in a wrongful dismissal claim; those are features of unfair dismissal or discrimination claims, not contractual breach claims.
Interactions with Other Claims
A wrongful dismissal claim often overlaps with other causes of action:
- An employee who was dismissed in breach of contract might also believe the dismissal was unfair, allowing both claims to be pursued if eligibility requirements are met.
- A constructive dismissal (where an employee resigns in response to a fundamental breach by the employer) may give rise to both wrongful and unfair dismissal issues.
Where multiple issues are joined in a single tribunal claim, claimants must clearly set out each cause of action on the ET1 form and provide supporting evidence.
Practical Considerations
Evidence and Documentation
Success in a wrongful dismissal claim depends on clear evidence of the terms of the employment contract, the notice owed, and the losses arising from the breach. Written contracts, payslips, policies and correspondence can be particularly important.
Tribunal vs Civil Court
Choosing the appropriate forum matters. A tribunal is accessible and may be suited to lower‑value wrongful dismissal claims, while the civil courts may be necessary for larger damage claims beyond tribunal limits.
Remedial Strategy
Employers can mitigate risk by ensuring that:
- contracts clearly specify notice and PILON provisions,
- contractual procedures are properly followed,
- legal advice is sought before terminating employment.
Employees should consider legal advice or representation where complex contractual terms are involved.
Key Takeaways
Wrongful dismissal in the employment tribunal context is a contractual claim that arises when an employer dismisses a worker in breach of their employment contract, most often by failing to provide the required notice or contractual payment in lieu of notice. The focus is on contractual rights and losses, rather than fairness in the broader statutory sense. Such claims can be brought without a qualifying period of service and may run alongside other claims such as unfair dismissal or discrimination. Remedies are limited to contractual losses, and claimants must observe strict time limits and procedural steps. Clear documentation and understanding of the employment contract are central to presenting a successful claim.
