Wrongful dismissal claims

What is wrongful dismissal?

Wrongful dismissal occurs when your employer breaches your employment contract when terminating your employment. For senior employees, this often involves complex contractual provisions around notice, garden leave, post-termination restrictions, and deferred compensation.

Wrongful dismissal is different from unfair dismissal, which is based on statutory rights rather than contract terms. Employees can bring a wrongful dismissal claim in the civil courts or an employment tribunal, typically seeking damages for lost earnings and benefits during the notice period.

Wrongful dismissal claims are most commonly pursued by senior executives, directors, and high-earning professionals. These can be for substantial financial value due to bonus schemes, share options, and other benefits. Claims often range from £50,000 to several million pounds.

Common examples include :-

• Dismissal without proper notice - senior employees often have lengthy notice periods (6-12 months) which can represent substantial value.

• Breach of contractual disciplinary procedures - directors and executives usually have enhanced contractual protections requiring specific procedures.

• Dismissal in breach of fixed-term contract - particularly relevant for project directors or interim executives on fixed-term appointments.

• Constructive dismissal through contract breach - often involves boardroom disputes or fundamental changes to senior roles.

Key points about wrongful dismissal

• No Requirement for Length of Service – unlike unfair dismissal claims, there is no minimum length of service required to bring a wrongful dismissal claim. An employee can claim as long as there is a clear breach of contract.

• Damages, Not Reinstatement – the main remedy for wrongful dismissal is financial compensation (damages) to cover the notice period or contractual entitlements, rather than reinstatement of employment.

• Fixed Compensation Limits in Tribunals – while wrongful dismissal claims can be brought in an employment tribunal or the courts, tribunals have a compensation cap (currently £25,000), whereas higher-value claims must be pursued in the civil courts.

• Employer Defences – employers can defend a claim if they can prove that the dismissal complied with contractual terms, or if the employee was dismissed for gross misconduct, which justifies immediate termination without notice.

High Court or Tribunal?

For senior employees, the High Court is often the preferred venue due to there being no cap on compensation in the High Court, Disadvantages include higher legal costs, risk of being ordered to pay employer costs if case is lost, and cases generally take longer to get to trial in the High Court.

You can claim both wrongful and unfair dismissal simultaneously (for unfair dismissal you must 2 years continuous service with the employer) but must choose carefully.

Solicitors for wrongful dismissal claims

If you believe you have been wrongfully dismissed, or if you are an employer facing a claim, our expert UK employment lawyers can help. We provide clear, strategic advice to protect your rights and financial interests. Whether negotiating a settlement or representing you in court or tribunal proceedings, we ensure you get the best possible outcome. Contact us today for tailored legal support.