Wrongful Dismissal & Breach of Contract

Wrongful dismissal is a breach-of-contract claim, not a statutory one. It asks a simple question — did the employer terminate your employment in breach of the contract, particularly by not giving the notice you were entitled to? It can run alongside an unfair dismissal claim, and unlike unfair dismissal it doesn't need any minimum service.

Cases on file

1188

Claimant win rate

57%

Cases reaching a determination

Median damages awarded

£10,184

Where compensation was awarded

How claims actually progress

Many unfair dismissal claims never reach a hearing on the merits — they're struck out, out of time, or fall outside the tribunal's jurisdiction. This is independent of why the dismissal happened.

How wrongful dismissal differs from unfair dismissal

Wrongful dismissal Unfair dismissal
Basis Breach of contract Statute (ERA 1996)
Service required None Usually 2 years
Limit County/High Court: unlimited. ET: £25,000 Capped (statutory max)
Question Was the contract breached? Was the dismissal reasonable?
Procedure Court rules apply Tribunal rules

A typical "no-notice" dismissal generates both claims. The wrongful dismissal claim asks whether the employer was contractually entitled to dismiss without notice; the unfair dismissal claim asks whether the decision to dismiss was reasonable.

Gross misconduct and the summary dismissal defence

Most wrongful dismissal claims turn on whether the employer was entitled to summarily dismiss for gross misconduct. The test is objective:

  • The conduct must amount to a repudiatory breach of the contract
  • The breach must be by the employee
  • The employer must elect to treat the contract as ended

Tribunals and courts have repeatedly held that this is not the same as the unfair dismissal test. A dismissal can be a reasonable response to alleged misconduct (so within the range under unfair dismissal) but the conduct may not actually have amounted to gross misconduct (so wrongful dismissal still succeeds). The Burchell test is a procedural standard for unfair dismissal; wrongful dismissal asks about the objective facts.

What can be recovered

  • Notice pay — net of tax and NI, for the period the employee should have been given
  • Contractual benefits during the notice period (pension, car allowance, private medical, etc.)
  • Contractual bonus if it would have been earned during the notice
  • Holiday accrued during the notice period if not already paid
  • Mitigation is deducted — earnings from any new role during the notice period reduce the claim

The £25,000 tribunal cap

Section 3(2) of the Employment Tribunals Extension of Jurisdiction (England and Wales) Order 1994 caps contract damages in the tribunal at £25,000. Senior employees with long notice periods, large bonus entitlements, or significant deferred compensation usually need to litigate in the County or High Court instead, where there's no cap. Bringing a tribunal claim doesn't bar a parallel court claim, but res judicata principles mean issues decided one way in the tribunal can bind the court.

Garden leave

A clause that requires the employee to stay away from work during the notice period while remaining employed and paid. Used to keep the employee out of the market — and away from competitors — while restricted covenants in the contract are still live. Enforceability turns on the same general restraint-of-trade principles as post-termination restrictive covenants.

Cases on Wrongful dismissal

Showing the 20 most recent of 1188 cases

Use the filters above to drill into specific outcomes, damages ranges, or years.

Frequently asked

What's the difference between wrongful dismissal and unfair dismissal?
Wrongful dismissal is contractual — was the dismissal a breach of contract? Unfair dismissal is statutory — was it within the range of reasonable responses? You can win one and lose the other. Wrongful dismissal has no qualifying-service requirement; unfair dismissal usually needs two years.
What does "summary dismissal" mean?
Dismissal without notice for gross misconduct. It's lawful — and therefore not wrongful — only if the employee's conduct genuinely amounted to a repudiatory breach of contract. Tribunals and courts look at the conduct objectively, not just whether the employer labelled it "gross misconduct".
What can I recover for wrongful dismissal?
Damages equal to the net value of the notice you should have received. If your contract gave six weeks' notice and you got none, you can recover six weeks' net pay (less anything earned in mitigation during that period). Bonus, pension contributions, and other benefits that would have been earned during the notice period are also recoverable.
Where do I bring a wrongful dismissal claim?
Employment Tribunal up to £25,000. Above that — or for damages that would exceed the tribunal cap — the County Court or High Court. The tribunal has no jurisdiction to award more than £25,000 on a breach-of-contract claim.
What's "pay in lieu of notice" (PILON)?
A clause in the contract that lets the employer end the contract immediately and pay an equivalent lump sum instead of working out notice. PILON paid under a contractual right is taxable as earnings. Without a PILON clause, a payment in lieu may be damages — but since April 2018, the post-employment notice pay (PENP) rules mean these payments are still taxed as earnings for most cases.