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 claims are most commonly pursued by senior executives, directors, and high-earning professionals. These claims typically involve complex contractual terms, significant notice periods, and 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.

What's the difference between wrongful and unfair dismissal?

Wrongful dismissal is about contract law - whether your employer broke your employment contract when dismissing you (most commonly not giving proper notice). The focus is purely on the contract terms. You can claim your losses during the notice period they should have given you.

Unfair dismissal is about whether the dismissal was fair in substance and process - did the employer have a valid reason and follow a fair procedure? It's based on statutory rights, not contract. You need 2 years' service and must show the dismissal was outside the "range of reasonable responses."

High Court vs Tribunal wrongful dismissal claims

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 venues carefully:

• Employment Tribunal for unfair dismissal (cap £105,707).

• High Court/County Court for wrongful dismissal if claim exceeds Tribunal's £25,000 limit.

• Employment Tribunal for both if wrongful dismissal under £25,000.