Wrongful Dismissal Explained
A plain English guide to wrongful dismissal, breach of contract claims, notice pay and how wrongful dismissal differs from unfair dismissal.
Wrongful dismissal is a contractual claim — about whether your employer followed your contract — not a statutory claim about whether the dismissal was fair. People often confuse the two. CaseIntel compares your situation against real Employment Tribunal decisions so you can understand your position with evidence.
What is wrongful dismissal?
Wrongful dismissal is a breach of contract claim. It happens when an employer ends the employment relationship in a way that breaches the terms of the employment contract — most commonly by failing to give the contractual notice the employee was entitled to.
The key features of a wrongful dismissal claim are:
Breach of contract
The claim is grounded in the contract — express terms, implied terms or both — rather than statute.
Failure to give proper notice
Most wrongful dismissal claims involve the employer terminating without giving (or paying) the contractual or statutory minimum notice.
Contractual rights
The employee is asking to be put back in the financial position they would have been in if the contract had been honoured.
Dismissal procedures
Where the contract incorporates a disciplinary or dismissal procedure, ignoring it can amount to a contractual breach.
Wrongful dismissal vs unfair dismissal
The two claims look superficially similar but operate on very different legal bases. Many dismissals are both unfair and wrongful; some are unfair but not wrongful; some are wrongful but not unfair. Understanding the difference matters because it changes what you can claim, where you claim it, and how much you might recover.
Contract law — express and implied terms of the employment contract.
Statute — the Employment Rights Act 1996 and related legislation.
No minimum service required. Available from day one of employment.
Usually requires around two years' continuous service, with limited exceptions.
Whether the employer followed the contract — particularly notice and contractual procedures.
Whether the reason for dismissal was potentially fair and whether a fair procedure was followed.
Contractual damages — typically notice pay, lost benefits and bonus or share entitlements during the notice period.
Basic Award and Compensatory Award, plus reinstatement or re-engagement in rare cases. Compensatory Award is subject to a statutory cap in most cases.
Summary dismissal where there was no gross misconduct, unpaid notice, breach of a contractual disciplinary procedure.
Dismissal for a potentially fair reason but with an inadequate process, or for a reason that doesn't fall within the statutory categories.
Employment Tribunal (subject to a damages cap) or the County Court / High Court for higher-value claims.
Employment Tribunal only.
When can you claim?
Wrongful dismissal typically arises in a handful of recurring situations. The common thread is that the employer has gone outside the terms of the contract — whether by sacking someone without notice, ignoring a contractual procedure, or withholding contractual entitlements.
Dismissal without contractual notice
The employer terminates immediately without giving the notice the contract requires, and without a lawful reason to do so.
Failure to pay notice pay
The employer purports to make a payment in lieu of notice but pays less than the contract requires, or withholds it altogether.
Contractual procedures ignored
A disciplinary or dismissal procedure has been incorporated into the contract and the employer departs from it — for example skipping required hearings or appeals.
Breach of express contractual terms
Other contractual terms — bonus schemes, share entitlements, garden leave clauses, restrictive covenants — are breached in connection with the dismissal.
Common wrongful dismissal examples
The same conduct can be wrongful in one set of circumstances and lawful in another — it depends on what the contract actually says and how it has been performed.
Dismissed without notice
An employee with a contractual notice period is summarily dismissed and not given (or paid for) any notice, in circumstances that don't justify summary dismissal.
Summary dismissal without gross misconduct
The employer summarily dismisses for alleged misconduct that falls short of gross misconduct — meaning notice was contractually due and unpaid.
Unpaid notice period
The employer purports to pay in lieu of notice but the sum is short — wrong notice length, bonus excluded, benefits ignored — leaving a contractual shortfall.
Contractual procedure ignored
A disciplinary or dismissal procedure incorporated into the contract is skipped or short-circuited — for example no contractual right of appeal.
Wrongful garden leave issues
The employer imposes garden leave or PILON on terms the contract does not permit, or withholds pay and benefits during garden leave.
Contractual benefits withheld
Contractual bonus, commission, vested shares or other entitlements that should have been paid on or after termination are not honoured.
Wrongful dismissal compensation
Wrongful dismissal compensation is contractual damages. The aim is to put you, so far as money can, in the position you would have been in if the contract had been performed properly — usually meaning you had been given (and paid for) your full contractual notice period.
Notice pay
The core head of loss — pay for the contractual or statutory minimum notice period the employer failed to honour.
Contractual losses
Bonus, commission, share entitlements and other contractual sums that would have accrued or vested during the notice period.
Benefits
Pension contributions, healthcare, car allowance and other benefits the employee would have received during the notice period.
Mitigation
Claimants are expected to take reasonable steps to find alternative work. Earnings in any new role during the notice period are normally offset against the loss.
Why a wrongful dismissal claim can be worth more than it looks
For long-notice employees — particularly senior staff with six or twelve months' contractual notice and significant bonus or share entitlements — the contractual damages can be substantial. Where the wrongful dismissal claim runs alongside an unfair dismissal or discrimination claim, the combined value is often much higher than either claim viewed alone. Our Settlement Offer Checker shows how any offer compares to awards in similar cases.
Tribunal process
Wrongful dismissal claims can be brought in the Employment Tribunal or, depending on value, in the civil courts. The choice has practical and tactical implications.
Employment Tribunal jurisdiction
Tribunals can hear wrongful dismissal claims, usually alongside any related unfair dismissal or discrimination claims, but the damages they can award in contract claims are capped.
County Court or High Court
Higher-value wrongful dismissal claims — typically senior employees with long notice and significant losses — may be brought in the civil courts, where damages are not subject to the tribunal cap.
Limitation periods
Tribunal claims must usually be started within three months less one day of termination, subject to ACAS Early Conciliation extension. Civil court claims have longer limitation periods.
Evidence required
The contract itself, payslips, correspondence around the dismissal, and any documents showing what the employee would have earned over the notice period.
Wrongful Dismissal Tribunal Statistics & Trends
This section will shortly contain original CaseIntel analysis of wrongful dismissal claims, drawn from our database of more than 54,000 published Employment Tribunal decisions.
Success rates
How often wrongful dismissal claims succeed across our database of published Employment Tribunal decisions, including where they run alongside unfair dismissal claims.
Compensation
Typical award ranges in successful wrongful dismissal claims, broken down by notice period and seniority.
Industries
How wrongful dismissal outcomes vary across sectors — from financial services to retail, healthcare and the public sector.
Regions
How outcomes differ across Employment Tribunal regions in England, Wales and Scotland.
Historical trends
How wrongful dismissal claim volumes and outcomes have shifted year on year.
Wrongful and unfair dismissal claims often run together
Most wrongful dismissal disputes don't sit on their own — they sit alongside an unfair dismissal claim, a discrimination claim, or both. CaseIntel benchmarks your situation against comparable published tribunal decisions so you can decide how to proceed with evidence rather than guesswork.
Claim Success Checker
See how often comparable employment claims succeed at tribunal, based on real published decisions.
Settlement Offer Checker
Benchmark a settlement offer against awards in comparable cases before you sign anything.
Tribunal Outcome Predictor
Model the likely outcome and award range if a wrongful or unfair dismissal dispute went all the way to tribunal.
Frequently Asked Questions
What is wrongful dismissal?+
Wrongful dismissal is a breach of contract claim. It happens where the employer ends the employment relationship in a way that breaches the employment contract — most commonly by failing to give (or pay for) the contractual notice period.
Is wrongful dismissal the same as unfair dismissal?+
No. Wrongful dismissal is a contract claim — about whether the contract was honoured. Unfair dismissal is a statutory claim — about whether the reason and process were fair.
A single dismissal can be wrongful, unfair, both or neither. See our Unfair Dismissal Explained guide for the statutory side.
Can I claim both?+
Yes, often. Many dismissals give rise to both claims and they are commonly brought together in the Employment Tribunal — wrongful dismissal for the notice pay and contractual losses, unfair dismissal for the broader unfairness.
What compensation can I receive?+
Wrongful dismissal damages are contractual — typically pay for the contractual notice period, plus the value of bonus, commission, pension contributions and benefits that would have accrued during that period.
For senior employees with long notice and significant variable pay, this can be substantial. Earnings from new employment during the notice period are normally offset.
Do I need two years' service?+
No. Wrongful dismissal claims have no minimum service requirement — they are available from day one of employment, because they are based on the contract rather than statutory unfair dismissal rights.
Can I claim notice pay?+
If you were dismissed without being given (or paid for) the notice your contract or statute required, and the employer didn't have a lawful basis to dismiss summarily, then yes — recovering notice pay is the most common form of wrongful dismissal claim.
How long do I have to bring a claim?+
Wrongful dismissal claims in the Employment Tribunal must usually be started within three months less one day of termination, subject to ACAS Early Conciliation extension.
If brought in the civil courts instead, the limitation period is significantly longer, but other procedural rules and costs risks apply.
Should I accept a settlement instead of claiming?+
Many wrongful dismissal disputes resolve through a settlement agreement before any claim is issued. Whether to accept depends on what's on the table compared with what a tribunal would be likely to award.
Benchmarking the offer against comparable awards is the most reliable way to make that call.
Not sure whether your dismissal breached your contract?
CaseIntel compares your situation against real Employment Tribunal decisions to help you understand your position — and decide whether to accept, negotiate or challenge with evidence on your side.
This guide is for general information only and is not legal advice. Always consult a qualified employment solicitor before making any legal decisions.