Wrongful dismissal

Wrongful dismissal is about notice — specifically, the employers failure to give you the notice you were contractually or legally entitled to. It is a breach of contract claim, not a statutory one, and it carries no qualifying period.

What is wrongful dismissal?

Wrongful dismissal is a common law claim for breach of contract — specifically the failure to give you the notice you were contractually or statutorily entitled to when your employment was terminated. It is different from unfair dismissal, which is a statutory claim about the fairness of the employer's reasons and procedure. You can bring both claims at the same time if the facts support them.

Do I need two years of service to bring a wrongful dismissal claim?

No. Wrongful dismissal is a breach of contract claim and carries no qualifying period. If you were dismissed on your first day without being given your contractual or statutory minimum notice, you have a potential wrongful dismissal claim regardless of how short your service was. This is one of the key differences from unfair dismissal, which requires two years of continuous employment for most cases.

Where can I bring a wrongful dismissal claim?

You can bring a wrongful dismissal claim in an employment tribunal or in the civil courts. In an employment tribunal, the claim is capped at £25,000 under the Employment Tribunals Extension of Jurisdiction (England and Wales) Order 1994. In the civil courts — county court or High Court — there is no cap on damages, but you will need to demonstrate your loss exceeds the amount enough to justify the higher cost and complexity of civil proceedings.

What notice am I entitled to?

You are entitled to the longer of: your contractual notice period (as set out in your contract of employment); or the statutory minimum notice under ERA 1996 s.86, which is one week per complete year of service up to a maximum of 12 weeks. If your contract gives you six months' notice, you are entitled to six months. If your contract gives you one week but you have worked for eight years, you are entitled to eight weeks of statutory notice — whichever is the greater applies.

What if my employer paid me in lieu of notice?

If your contract contains a payment in lieu of notice (PILON) clause and your employer exercises it, paying you your notice pay in a lump sum instead of requiring you to work it, that is not a wrongful dismissal — your employer is exercising a contractual right. If there is no PILON clause and the employer still terminates immediately and pays you a sum, that payment may be damages for wrongful dismissal rather than a contractual entitlement, and the tax treatment differs.

Can I claim wrongful dismissal even if I was dismissed for gross misconduct?

It depends on whether the gross misconduct was genuine. An employer is entitled to dismiss without notice for a genuine repudiatory breach of contract by the employee — serious misconduct that goes to the root of the employment relationship. If the conduct truly was gross misconduct, no notice is owed and there is no wrongful dismissal. However, if the employer acted on an unfounded allegation or failed to investigate properly, the conduct may not justify summary dismissal and a wrongful dismissal claim may succeed.

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Wrongful dismissal is about notice — specifically, the employer

s failure to give you the notice you were contractually or legally entitled to. It is a breach of contract claim, not a statutory one, and it carries no qualifying period.

Last reviewed: June 2026

common law breach of contract claim

arising when an employer dismisses an employee without giving the

required by the contract or by

, with tribunal claims capped at

and no qualifying period of service required.

Where this comes from

— wrongful dismissal is a common law claim, not a statutory one; the right to notice is implied into every employment contract.

— sets the statutory minimum notice: one week per complete year of service, up to 12 weeks.

Employment Tribunals Extension of Jurisdiction (England and Wales) Order 1994

— allows breach of contract claims in the employment tribunal, capped at £25,000.

Wrongful dismissal vs unfair dismissal

Common law breach of contract

Statutory right under ERA 1996

Was the right amount of notice given?

Was the dismissal fair — reasons and procedure?

Two years (most cases)

£118,223 or 52 weeks

No cap, 6-year limitation

Not applicable for unfair dismissal

What notice you are entitled to

The starting point is your contract of employment. If it specifies a notice period — say, three months — that is the contractual entitlement. But the law also sets a

under ERA 1996 s.86: one week

s notice for each complete year of continuous employment, up to a maximum of 12 weeks.

You are always entitled to whichever is the greater: the contractual notice or the statutory minimum. An employer cannot contract below the statutory floor. So if your contract says one week but you have worked for five years, you are entitled to five weeks

An employer can dismiss without notice for

genuine gross misconduct

— a serious breach of contract by you that entitles them to treat themselves as discharged from the obligation to give notice. But unfounded allegations or investigations that do not establish gross misconduct do not justify summary dismissal.

The £25,000 tribunal cap and the civil court alternative

Employment tribunals can hear breach of contract claims under the 1994 Extension of Jurisdiction Order, but the maximum award is

. For many wrongful dismissal cases this is sufficient — the claim is simply for unpaid notice pay.

But where notice pay exceeds £25,000 — typical for senior employees with long contractual notice periods — the civil courts (county court or High Court) are the better venue. There is no cap on damages in civil proceedings, and the limitation period is

from the breach (compared to three months for an employment tribunal claim). The tradeoff is higher cost and complexity.

Payment in lieu of notice (PILON)

A PILON clause in your contract allows the employer to terminate your employment immediately by paying you a lump sum representing your notice pay, rather than requiring you to work the notice period. If such a clause exists and the employer exercises it, paying the required sum, that is not wrongful dismissal — it is a contractual right being exercised.

Without a PILON clause, a payment made on immediate termination is technically damages for breach of contract — the employer is buying out a claim. The distinction matters because PILON payments are treated differently for tax purposes to damages.

Rachel has worked for her employer for

. Her contract specifies

. She is dismissed summarily for alleged gross misconduct, but the employer

s investigation was superficial and the allegation unfounded.

Statutory minimum notice:

(one per year). Contractual notice:

approximately 4.3 weeks

(one month). Rachel is entitled to the greater —

At her weekly gross pay of £900, the wrongful dismissal claim is worth approximately

— well within the £25,000 tribunal cap. She also has a potential unfair dismissal claim (subject to the two-year qualifying period and the substance of the misconduct allegation), which the tribunal would assess separately.

Frequently asked questions

Sources & further reading

Think you were dismissed without proper notice?

Start My Claim walks you through your notice entitlement and helps you work out whether you have a wrongful dismissal or unfair dismissal claim — or both.

Last reviewed: June 2026.

ERA 1996 s.86 and the 1994 Extension of Jurisdiction Order confirmed current. Tribunal cap £25,000.

This page is explanatory only and is not legal advice. Start My Claim is self-service software, not a law firm.