Unfair dismissal vs wrongful dismissal

Two different claims, different rules, and very different outcomes. Learn which applies to you and how they work in practice.

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What if I have less than 2 years of service?

You can’t claim unfair dismissal, but you may still claim wrongful dismissal if dismissed without proper notice or pay in lieu. Wrongful dismissal is vital for short-service employees.

Can someone dismissed on day one claim wrongful dismissal?

Yes, but the claim is typically small — usually the notice pay you should have received. With no contract specifying notice, statutory notice (minimum 1 week) applies.

Does a wrongful dismissal claim change if I was on garden leave?

Garden leave (paid but not working during notice) satisfies the wrongful dismissal claim because you received your notice pay. You may still pursue unfair dismissal if you meet the 2-year threshold.

Which compensation is typically larger?

Unfair dismissal, usually much larger. The compensatory award is uncapped for discrimination-related dismissals. Wrongful dismissal is capped at notice pay, though it can be substantial for long notice periods or high salaries.

If my employer pays me notice voluntarily, does that waive my wrongful dismissal claim?

Generally yes, if you accept the payment as satisfying your notice rights. To preserve the claim, payments need to be explicitly ‘without prejudice’. Get advice before accepting.

Can I bring both unfair and wrongful dismissal claims at the same hearing?

Yes. Many claimants bring both — a dismissal can breach both contract and statute. The tribunal assesses each separately and you can recover compensation under both heads if both are proved.

Employment Law Guide

Unfair dismissal vs wrongful dismissal

Last updated: April 2026 · Content reviewed against current UK employment law

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What is unfair dismissal?

Unfair dismissal is a statutory right under the

Employment Rights Act 1996

, section 98. It applies when:

• You have completed 2 years of continuous employment with your employer
• You were dismissed (not resigned)
• The employer either had no fair reason for dismissal, or had a fair reason but failed to follow a fair procedure

The employer bears the burden of proving they had a fair reason (capability, conduct, redundancy, breach of law, or SOSR — some other substantial reason). If they cannot prove this, the dismissal is unfair.

Compensation for unfair dismissal includes a basic award (calculated on age, length of service, and weekly pay) plus a compensatory award covering lost earnings, benefits, and other losses. In discrimination-related cases, the compensatory award is uncapped and can reach six figures.

What is wrongful dismissal?

Wrongful dismissal is a breach of contract claim, not a statutory right. It applies when your employer dismissed you in breach of your contract of employment — most commonly by:

• Dismissing you without the notice period specified in your contract (or statutory notice if no contract specifies one)
• Dismissing you without payment in lieu of notice

Wrongful dismissal has

no qualifying period

— you have the right from day one of employment. However, your compensation is limited to the notice pay you should have received (calculated from the dismissal date to the end of your notice period).

You can claim wrongful dismissal in the employment tribunal (if the claim is under £25,000), or in the county court (for larger claims). The time limit is 3 months for the tribunal, or 6 years for the county court.

Yes, frequently. A single dismissal can be

wrongful and unfair. For example:

• Your employer dismisses you without notice and without following any disciplinary procedure. This is wrongful (breach of notice) and unfair (lack of procedure).
• You are dismissed for capability reasons, but the employer provides no support, training, or warning. This is unfair (unfair procedure), and if notice was not given, also wrongful.

Many claimants bring both claims in the same Employment Tribunal claim (ET1). The tribunal will assess each separately, and you can recover compensation under both heads if both are proved.

The advantage of having both claims is flexibility: wrongful dismissal is easier to prove (it's just contract breach), but may yield smaller compensation; unfair dismissal is harder to prove but can deliver much larger awards.

Which should you focus on?

The answer depends on your circumstances:

Focus on unfair dismissal if:

• You have 2 years or more of service
• The compensation from unfair dismissal is likely to be larger (you can claim injury to feelings, lost earnings over many months, and benefits)
• You have evidence of procedural unfairness (no warning, no investigation, no hearing, etc.)

Focus on wrongful dismissal if:

• You have less than 2 years of service (unfair dismissal not available)
• You have a long notice period or very high salary, making the notice pay claim valuable
• You were dismissed immediately without notice and with no payment in lieu

In most cases, you should bring

if you can. The cost is minimal (they go in the same ET1), and it gives you multiple paths to recovery.

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