Understanding Wrongful Dismissal
Understanding Wrongful Dismissal
Wrongful dismissal occurs when an employer terminates an employee’s contract in breach of its terms. This is a contractual issue, not about the fairness of the dismissal, but whether your employer followed the terms set out in your employment contract or relevant statutory notice periods. If you are dismissed without the proper notice, or your employer fails to pay you what you are contractually owed, you may have grounds to claim wrongful dismissal.
What Counts as Wrongful Dismissal?
The most common example of wrongful dismissal is being dismissed without receiving the notice period specified in your contract or the statutory minimum notice required by law. For example, if your contract states you are entitled to four weeks’ notice, but your employer asks you to leave immediately without pay in lieu of notice, this can be considered a breach of contract.
Other breaches could include:
- Not following the correct disciplinary or dismissal procedures set out in your contract.
- Failing to pay outstanding wages, holiday pay, or other contractual entitlements upon termination.
It’s important to note that wrongful dismissal does not consider whether your employer had a good reason to dismiss you – it focuses solely on whether the terms of your contract were followed.
Wrongful Dismissal vs. Unfair Dismissal
Wrongful dismissal is often confused with unfair dismissal, but they are distinct legal concepts. Wrongful dismissal is about a breach of contract, while unfair dismissal relates to whether your employer had a fair reason and followed a fair process under employment law.
For example, you might have a claim for wrongful dismissal if you were dismissed without notice, even if your employer had a potentially fair reason for your dismissal. Conversely, you might have received the correct notice but still have an unfair dismissal claim if your employer did not have a valid reason or failed to follow the correct procedures. If you are unsure which applies to your situation, you may find it helpful to read about the differences in our guide to Understanding Unfair Dismissal Eligibility.
Why Knowing Your Rights Matters
Understanding your rights when you are dismissed is crucial. If you believe your employer has breached your contract, you may be able to bring a claim for wrongful dismissal and recover lost earnings or other contractual entitlements. Being aware of your rights can help you negotiate a fair settlement or decide whether to take your case to an employment tribunal.
The legal framework for wrongful dismissal is set out in both your employment contract and legislation such as the Employment Rights Act 1996, which outlines minimum notice periods and other key protections for employees.
If you’re looking for a broader overview or want to explore related topics, our main page on Wrongful Dismissal provides more detailed guidance on your rights and what steps to take if you think you’ve been dismissed in breach of contract.
Basic Eligibility Criteria for Claiming Wrongful Dismissal
To claim wrongful dismissal in the UK, you must meet certain basic eligibility criteria. Understanding these requirements is the first step to knowing whether you have a valid case.
1. You Must Be an Employee With a Valid Employment Contract
Only employees are eligible to claim wrongful dismissal. This means you must have a contract of employment with your employer. The contract can take several forms:
- Written contracts: These are formal documents outlining your terms of employment. Most employees receive a written statement of employment particulars, which serves as proof of the contract.
- Verbal contracts: Even if nothing is written down, a contract can still exist if you and your employer have agreed to work terms verbally.
- Implied contracts: Sometimes, the law recognises an employment relationship based on the conduct of both parties, even if nothing was expressly agreed in writing or spoken.
Regardless of the form, your contract must set out the key terms of your employment, such as your job role, pay, and notice period.
2. There Must Be a Breach of Contract
Wrongful dismissal occurs when your employer dismisses you in breach of your employment contract. The most common example is being dismissed without the proper notice period, as required by your contract or by law under the Employment Rights Act 1996.
Examples of breach include:
- Being dismissed without any notice, when your contract specifies you should receive at least one week’s notice (or longer, depending on your length of service).
- Not receiving pay or benefits you are entitled to during your notice period.
- Your employer terminating your contract without following the agreed disciplinary or dismissal procedures, if these are set out in your contract.
3. Who Is Not Eligible?
Certain categories of workers are not eligible to claim wrongful dismissal:
- Freelancers and self-employed individuals: If you work for yourself or provide services on a freelance or consultancy basis, you are not considered an employee and cannot claim wrongful dismissal.
- Workers without a contract: If there is no contract of employment – whether written, verbal, or implied – you are not eligible.
- Agency workers: Your right to claim may depend on whether you are legally classified as an employee of the agency or the end client.
If you are unsure about your employment status, it may help to review your working arrangements or seek legal advice.
4. How Does This Differ From Unfair Dismissal?
It’s important to note that wrongful dismissal is different from unfair dismissal. Unfair dismissal is based on whether your employer had a fair reason and followed a fair process, while wrongful dismissal focuses on whether your contractual rights – such as notice – were breached. The eligibility rules and legal protections for each type of claim are different.
If you believe your employer has breached your contract when dismissing you, and you meet the criteria above, you may have grounds to bring a claim for wrongful dismissal. Always check your contract and consider seeking professional advice if you are unsure about your rights.
Who Counts as an Employee?
Who Counts as an Employee?
To claim wrongful dismissal in the UK, you must be classed as an “employee” under employment law. Understanding whether you are an employee – and not a worker or someone who is self-employed – is crucial, as only employees have the right to bring a wrongful dismissal claim.
What Is an Employee?
An employee is someone who works under a contract of employment. This contract can be written, verbal, or implied, but it must set out the key terms of your job – such as your duties, pay, and working hours. Employees are required to work personally for their employer and are subject to the employer’s control over how, when, and where the work is done.
UK law distinguishes employees from other types of working relationships. The main criteria used to identify an employee include:
- Mutuality of obligation: The employer must provide work and pay, and the employee must perform the work.
- Control: The employer has significant control over how the work is carried out.
- Personal service: The employee must do the work themselves and cannot send someone else in their place.
These criteria are set out in the Employment Rights Act 1996 and have been developed further through case law.
Employee vs Worker vs Self-Employed: What’s the Difference?
It’s important to understand the difference between being an employee, a worker, and someone who is self-employed:
- Employee: Has the full set of employment rights, including the right to claim wrongful dismissal. Employees have a contract of employment and are under the employer’s direct control.
- Worker: Has some employment rights (such as minimum wage and paid holiday), but not all the rights employees enjoy. Workers usually have a contract for services and may have more flexibility in how they work.
- Self-employed: Runs their own business and provides services to clients or customers. Self-employed people do not have employment rights against the people they work for, as they are considered to be in business on their own account.
For a more detailed breakdown of these categories and to check your own employment status, see the official Guidance on employee status.
Why Does Only Employee Status Matter for Wrongful Dismissal?
The right to claim wrongful dismissal is limited to employees because it is based on breach of contract – specifically, the contract of employment. If you are not legally classed as an employee, you do not have a contract of employment and therefore cannot bring a wrongful dismissal claim.
Workers and self-employed individuals may have other legal protections, but they are not covered by wrongful dismissal laws. If you are unsure about your status, it’s worth reviewing your contract, your day-to-day working arrangements, and seeking advice if needed.
If you are exploring your rights after being dismissed, you may also want to understand the differences between wrongful dismissal and unfair dismissal. The eligibility rules for each are different. For more information on who can claim unfair dismissal, visit Who Can Claim Unfair Dismissal?
Understanding your employment status is the first step towards knowing your rights and options if you believe you have been dismissed unfairly or wrongfully.
What Counts as a Breach of Contract?
When considering whether you can claim wrongful dismissal, it’s important to understand what actually counts as a breach of contract by your employer. In UK employment law, wrongful dismissal occurs when your employer breaks the terms of your employment contract in the way they dismiss you. Below, we explain the most common scenarios where a breach of contract can arise.
Dismissal Without Notice or Insufficient Notice
One of the most frequent breaches is dismissal without the proper notice period. Under the Employment Rights Act 1996, unless you have committed gross misconduct, your employer must give you the notice specified in your contract, or at least the statutory minimum notice. The statutory minimum is:
- One week’s notice if you have been employed for more than one month but less than two years
- One additional week for each further year of continuous employment, up to a maximum of 12 weeks
If your employer dismisses you without giving either the contractually agreed notice or the legal minimum, this is a clear breach of contract and grounds for a wrongful dismissal claim.
Dismissal During Probation Without Agreed Terms
Probation periods often have different notice requirements, which should be clearly set out in your contract. If your employer dismisses you during probation without following these agreed terms – such as not providing the notice period specified for probationary staff – this can also amount to a breach of contract. Even during probation, your employer must adhere to any contractual obligations regarding notice and process.
Other Contract Terms That Might Be Breached
While notice is the most common issue, other breaches can also give rise to wrongful dismissal claims. Examples include:
- Failing to pay you for your notice period when you are dismissed
- Not following agreed dismissal procedures set out in your contract, such as a disciplinary process
- Withdrawing contractual benefits (like bonuses or holiday pay) that you are entitled to during your notice period
It’s important to note that not every unfair action by your employer will amount to a breach of contract. The key issue is whether the terms of your contract – written, verbal, or implied – have been broken. For a broader look at what constitutes a breach, you can explore Breach of Contract examples on Wikipedia, which covers the different types of contract terms and the legal consequences of breaching them.
Practical Advice and Next Steps
If you believe your employer has breached your contract, gather evidence such as your contract, payslips, and any correspondence about your dismissal. Consider discussing your situation with an employment law specialist to assess whether you have a valid wrongful dismissal claim.
To better understand how wrongful dismissal fits within the wider context of UK dismissal law, you may find it helpful to read our section on Wrongful Dismissal, which provides further details on your rights and what steps you can take next.
When You Cannot Claim Wrongful Dismissal
When You Cannot Claim Wrongful Dismissal
While wrongful dismissal claims can offer protection when your employment contract is breached, there are important situations where you are not eligible to bring such a claim. Understanding these exceptions can help you determine the right legal route for your circumstances.
1. Unfair Process vs. Wrongful Dismissal
Wrongful dismissal specifically concerns breaches of contract – most commonly, when your employer fails to give you the proper notice period required by your employment contract or by law. If your dismissal was carried out using a fair process but you believe the reason for your dismissal was unjust, this may fall under unfair dismissal rather than wrongful dismissal. The two claims are different in law, with unfair dismissal focusing on the fairness of the employer’s reason and procedure, and wrongful dismissal focusing on contractual rights. If you think your dismissal was unfair, you may wish to read more about who can claim unfair dismissal.
2. Employment Status: Only Employees Can Claim
To bring a wrongful dismissal claim, you must be classed as an employee under UK employment law. If you are self-employed, a freelancer, or operate as an independent contractor, you are not eligible to claim wrongful dismissal. Similarly, if you work under a casual arrangement or have no formal contract, you may not have the legal standing to pursue a claim, as wrongful dismissal relies on the existence of a contract of employment. Determining your employment status can be complex, so it’s important to review your working arrangements carefully.
3. No Contract or Only a Casual Agreement
A wrongful dismissal claim requires a clear contract of employment – either written, oral, or implied. If you do not have a contract, or your agreement with your employer is purely casual (for example, zero-hours contracts with no guaranteed work or notice period), you may not be able to claim wrongful dismissal. In these cases, your rights may be more limited, and other legal remedies may be more appropriate.
4. Dismissal for Gross Misconduct
If your employer dismisses you for gross misconduct – such as theft, violence, or serious breaches of company policy – they are generally entitled to terminate your employment without notice. In these instances, a wrongful dismissal claim is unlikely to succeed, as the law recognises an employer’s right to dismiss immediately in cases of serious wrongdoing. However, employers must still follow a fair disciplinary process, as set out in the ACAS Code of Practice on Disciplinary and Grievance Procedures. If your employer failed to follow this process, you may have grounds for a different type of claim, such as unfair dismissal or breach of procedure.
Summary
In summary, you cannot claim wrongful dismissal if you are not an employee, have no contract or only a casual agreement, or if your dismissal was for gross misconduct and your employer followed the correct process. If your situation does not fit these criteria but you still believe your dismissal was unjust, consider exploring other legal options, such as unfair dismissal claims. Always seek professional advice if you are unsure about your rights or the best course of action.
Additional Considerations
Additional Considerations
When considering a wrongful dismissal claim, it’s important to be aware of several key factors beyond basic eligibility. These considerations can impact your chances of success and help you make informed decisions about your next steps.
Time Limits for Bringing a Claim
There are strict time limits for making a wrongful dismissal claim in the UK. Generally, you must bring your claim within three months less one day from the date your employment ended. This deadline applies if you are making your claim to an employment tribunal. If you are instead pursuing your claim through the civil courts (such as the County Court or High Court), you have up to six years from the date of dismissal. However, most employees choose the tribunal route because it is usually quicker and less expensive.
Missing these deadlines can mean losing your right to claim, so it’s crucial to act promptly. If you are unsure about the exact date your employment ended or when the time limit starts, seek legal advice as soon as possible.
Check Your Employment Contract Carefully
Your employment contract plays a central role in wrongful dismissal cases. Wrongful dismissal occurs when your employer breaches the terms of your contract – most commonly by failing to give you the correct notice period. Review your contract to confirm:
- The notice period you are entitled to (statutory or contractual, whichever is greater)
- Any relevant clauses about termination, pay during notice, or garden leave
- Other contractual rights, such as redundancy procedures or disciplinary processes
If your employer has failed to follow these terms, you may have grounds for a wrongful dismissal claim. It’s also worth checking for any clauses that could affect your rights, such as probationary periods or fixed-term arrangements.
For more information about related rights and whether you might also have a claim for unfair dismissal, see How to Check Your Eligibility.
Consider Alternative Options Like Dismissal Appeals
Before starting a formal claim, it’s often sensible to explore other options. Many employers have internal procedures for challenging a dismissal, such as a formal appeal process. Lodging an appeal can sometimes resolve the situation without the need for legal action. It also demonstrates that you have taken reasonable steps to address the issue, which can be helpful if your case does proceed further.
Learn more about how the process works and whether it might be right for you on our Dismissal Appeals page.
Taking these additional considerations into account can help you make the best decision for your circumstances. If you’re unsure about your next steps, seeking early advice from a legal professional or employment adviser is always recommended.
Next Steps If You Think You Are Eligible
Once you believe you may be eligible to claim wrongful dismissal, it’s important to take clear and timely steps to protect your rights and improve your chances of a successful outcome. Here’s what you should do next:
1. Gather Evidence of Your Contract and Dismissal
To make a wrongful dismissal claim, you need to show that your employer breached your contract of employment. Start by collecting the following:
- Your written contract of employment (or any offer letters, staff handbooks, or policies that set out your terms and conditions).
- Correspondence about your dismissal, such as termination letters, emails, or messages that explain why and how you were dismissed.
- Pay slips, timesheets, or records showing your employment history and entitlements.
- Notes of any meetings or conversations with your employer about your dismissal.
Having clear evidence will help you establish what your contractual rights were, and how your employer may have breached them.
2. Seek Legal Advice or Support
Employment law can be complex. Even if you have strong evidence, it’s wise to get professional advice before taking action. You can:
- Speak to a solicitor who specialises in employment law.
- Contact an advice service such as Citizens Advice or Acas for free, impartial guidance.
- If your dismissal has affected your wellbeing, remember you have mental health and work rights and can seek support.
A legal expert can help you assess your case, understand your options, and avoid common pitfalls. They can also advise if you might have grounds for another type of claim, such as unfair dismissal.
3. Filing a Claim and Understanding the Process
If you decide to move forward, you’ll usually need to submit a claim to an employment tribunal. Key steps include:
- Checking the strict time limits: You must file your claim within three months minus one day from the date your employment ended.
- Completing the relevant forms and providing supporting evidence.
- Considering whether Acas Early Conciliation is required before your claim can proceed.
For a step-by-step guide, see How to File a Wrongful Dismissal Claim. You can also find the official Claim for wrongful dismissal form and further information on the Acas website.
4. Understand the Potential Outcomes
If your claim is successful, the tribunal may order your employer to pay you compensation for the losses you suffered as a result of the breach of contract. The amount you can claim will depend on factors such as your notice period and any financial losses. For more details, see Compensation for Wrongful Dismissal.
It’s also worth exploring practical steps to strengthen your case – see How to Win Your Wrongful Dismissal Case for useful strategies.
5. Consider Related Issues
Losing your job can have a wider impact on your life. You may be entitled to financial support – learn more about claiming benefits after being sacked. If you believe your dismissal was not just a breach of contract, but also involved discrimination or automatic unfair reasons, you may have additional rights and remedies.
Taking prompt, informed action is essential. By gathering evidence, seeking advice, and understanding the process, you can give yourself the best chance of a fair outcome.
