Wrongful Dismissal Limitation Period Rules

Wrongful dismissal is a contractual claim arising when an employer terminates employment in breach of contract. The most common form is dismissal without proper notice or payment in lieu of notice where the contract does not permit it.

Unlike unfair dismissal, which is statutory and brought in the Employment Tribunal, wrongful dismissal is a common law breach of contract claim. This means it can be brought either in an Employment Tribunal (in limited circumstances) or in the civil courts.

A key issue in all wrongful dismissal claims is the limitation period-the legal deadline for starting proceedings. Missing this deadline usually prevents a claim from being heard.

This article explains the limitation rules for wrongful dismissal claims, how deadlines are calculated, differences between tribunals and courts, and key procedural considerations in England and Wales.

What Is Wrongful Dismissal?

Wrongful dismissal occurs when an employer breaches the employment contract by terminating employment unlawfully. It focuses on contractual rights, not fairness.

Common examples include:

• Dismissal without contractual or statutory notice
• Failure to pay notice pay or payment in lieu of notice (PILON) where required
• Immediate dismissal without contractual justification
• Breach of contractual disciplinary procedure (where it is part of the contract)

Wrongful dismissal is distinct from unfair dismissal, which concerns the fairness of the employer's reason and process.

Time Limits for Wrongful Dismissal Claims

The limitation period depends on where the claim is brought.

1. Employment Tribunal claims

For wrongful dismissal claims brought in the Employment Tribunal, the time limit is:

Three months less one day from the effective date of termination (EDT).

However, Employment Tribunals can only hear wrongful dismissal claims if they are linked to an unfair dismissal claim or fall within limited jurisdictional rules.

2. Civil court claims (County Court or High Court)

For breach of contract claims, including wrongful dismissal, the general limitation period is:

Six years from the date of breach.

This is set under the Limitation Act 1980.

Why There Are Two Different Limitation Periods

The UK legal system separates employment claims into two routes:

Employment Tribunal route

• Fast, informal, cost-limited
• Strict jurisdiction limits for breach of contract claims
• Short limitation period (3 months less one day)

Civil courts route

• Full contractual jurisdiction
• Longer limitation period (6 years)
• More formal and potentially cost-exposed process

Wrongful dismissal claims are often brought in civil courts unless they are combined with statutory employment claims.

When Does Time Start Running?

The limitation period starts from the date of breach of contract, which is usually the:

• Effective date of termination (EDT), or
• Date the employer failed to give notice or pay notice entitlement

Examples

• Immediate dismissal without notice: time runs from dismissal date
• Notice not paid: time runs from termination date
• Payment in lieu dispute: time runs from the date employment ended

The EDT is central to calculating deadlines in tribunal cases.

ACAS Early Conciliation and Time Limits

For Employment Tribunal claims, most claimants must first contact ACAS for Early Conciliation.

This process:

• Suspends the limitation clock while it is ongoing
• Extends the deadline by the conciliation period
• Resumes time once ACAS issues a certificate

However, ACAS Early Conciliation does not affect the six-year limitation period in civil courts.

Wrongful Dismissal in the Employment Tribunal

Employment Tribunals can hear wrongful dismissal claims only in limited circumstances, usually where they are:

• Combined with unfair dismissal claims, or
• Within statutory jurisdiction for breach of contract up to £25,000 (subject to rules)

In tribunal cases, the strict three-month less one day limitation applies.

Because of these limitations, many wrongful dismissal claims are instead brought in the civil courts.

Wrongful Dismissal in Civil Courts

Most standalone wrongful dismissal claims are brought as breach of contract claims in the County Court or High Court.

Key limitation rule:

• Six years from breach of contract

This longer period reflects the general contractual nature of the claim.

Example

If an employee is dismissed in breach of contract on 1 March 2026, they may bring a civil claim until 1 March 2032.

Extension of Time in Wrongful Dismissal Claims

Employment Tribunal claims

Tribunals have very limited discretion to extend time. For breach of contract claims linked to tribunal jurisdiction, extension is only possible where it was not reasonably practicable to bring the claim in time.

This is a strict test and rarely satisfied.

Civil court claims

Civil courts have limited discretion to disapply limitation rules, but this is rare. The six-year limit is generally strict.

Common Limitation Issues

1. Confusion between unfair and wrongful dismissal

Employees often assume both claims share the same rules. They do not:

• Unfair dismissal: statutory tribunal claim
• Wrongful dismissal: contractual claim (tribunal or court)

2. Delay due to grievance procedures

Internal grievance processes do not pause limitation periods in either system.

3. Misunderstanding notice entitlements

Disputes often arise over whether notice was contractually required, affecting the breach date.

4. Choosing the wrong forum

Filing in the wrong jurisdiction can result in claims being struck out or time expiring before re-filing.

Why Time Limits Are Important

Limitation rules exist to ensure:

• Fairness between employer and employee
• Reliability of evidence
• Legal certainty in employment relationships
• Efficient resolution of disputes

Wrongful dismissal claims often depend on contractual documents and payroll evidence, which can become harder to verify over time.

Practical Steps When Considering a Claim

Typical steps include:

• Identifying the exact termination date
• Reviewing the employment contract for notice terms
• Calculating limitation periods in both tribunal and civil court routes
• Starting ACAS Early Conciliation if considering tribunal proceedings
• Gathering payslips, contracts, and dismissal communications
• Considering whether the claim belongs in tribunal or civil court

Early legal assessment of jurisdiction and timing is critical due to differing limitation rules.

Common Questions from our Readers

What is the limitation period for wrongful dismissal in the Employment Tribunal?

Generally three months less one day from the effective date of termination, subject to ACAS Early Conciliation.

What is the limitation period in civil court?

Six years from the date of breach of contract.

Can wrongful dismissal be brought in an Employment Tribunal?

Only in limited circumstances, often alongside unfair dismissal or within statutory jurisdiction limits.

Does ACAS Early Conciliation apply to civil court claims?

No. It only affects Employment Tribunal limitation periods.

What happens if the limitation period expires?

The claim will usually be time-barred and cannot proceed unless strict exceptions apply.

Key Takeaways

Wrongful dismissal claims are contractual claims with different limitation rules depending on the forum. In Employment Tribunals, the time limit is three months less one day, while in civil courts it is six years under the Limitation Act 1980.

Correctly identifying the breach date, understanding jurisdiction, and acting within the applicable time limit are essential. Tribunal claims are strictly time-limited, while civil claims allow a longer period but involve a more formal process.