What is Wrongful Dismissal?
Common questions for employment lawyers are; "what is wrongful dismissal?" and "what is the difference between wrongful and unfair dismissal?". We give you the answers below.
What is wrongful dismissal?
Wrongful dismissal is a dismissal that is in breach of an employee’s contract. Some examples of breach of contract that are involved in wrongful dismissal claims are:
- Breach of notice, whether:
o expressed (such as not letting an employee serve their full contractual notice); or
o implied (such as the implied term to provide an employee with a minimum statutory notice period).
- Termination of a fixed-term contract before it has expired.
- Breach of a contractual disciplinary or redundancy procedure.
What is the difference between wrongful and unfair dismissal?
Wrongful dismissal is a contractual right; one that is set out in the contract of employment.
Unfair dismissal is a statutory right; under the Employment Right Act 1996.
The key difference therefore between wrongful and unfair dismissal is that wrongful dismissal is a breach of contract law by the employer, not statutory law. Whereas, an unfair dismissal claim arises if the employee has been dismissed and their employer does not have a potential fair reason for justifying the dismissal under section 98 of the Employment Rights Act 1996.
Can an employee claim wrongful dismissal if they have worked for a short period of time?
There is no requirement for an employee to have a set period of continuous service to pursue a wrongful dismissal claim. A wrongful dismissal claim is a day 1 right.
Is there a time limit for raising a claim for wrongful dismissal?
Wrongful dismissal claims must be brought at an employment tribunal within three months (less a day) from the date of the employee’s termination. However, an employee who is out of time to pursue a claim in the employment tribunal could still pursue a civil action as, in the civil court, an extended six-year limitation period applies.
How much compensation can be claimed for Wrongful Dismissal?
If an employer wrongfully dismisses their employee, they will be liable to pay damages to put them back in the position they would have been in had the contract been terminated fairly in accordance with its terms.
Therefore, damages will reflect the net value of wages and any other contractual benefits to which the employee would have been entitled had they been allowed to work out their notice.
The damages recoverable in an employment tribunal for wrongful dismissal is capped at a statutory maximum of £25,000.
However, if the value of the employee’s claim is worth more, there is no such cap in the civil courts and they could pursue their claim there.
How can Wrongful Dismissal claims be avoided?
It is prudent to have a comprehensive employment contract and disciplinary policy which details termination provisions and to ensure that they are followed upon termination of employment.
For more information, please feel free to contact us on 01442 531021 or by email: info@barnardwebb.co.uk.
The contents of this article are for the purposes of general awareness only. They do not purport to constitute legal or professional advice. The law may have changes since this article was published. Readers should not act on the basis of the information included and should take appropriate professional advice upon their own particular circumstances.
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