Unfair dismissal and wrongful dismissal are two employment law terms that are often used interchangeably, but they are not the same thing.
While both relate to the termination of employment, they involve different legal principles and give rise to different types of claims.
In simple terms, unfair dismissal concerns the reason and process behind a dismissal, while wrongful dismissal concerns whether the employer breached the employment contract.
Understanding the distinction can help employees and employers better understand their rights and obligations.
What Is Unfair Dismissal?
Unfair dismissal occurs when an employee is dismissed without a fair reason or when the employer fails to follow a fair procedure.
Under UK employment law, employers must generally show a potentially fair reason for dismissal, such as:
- Misconduct
- Poor performance
- Redundancy
- A legal restriction preventing continued employment
- Some other substantial reason
However, having a fair reason is not enough on its own. Employers must also follow a fair process, which may include carrying out investigations, holding meetings, and allowing the employee an opportunity to respond.
A dismissal may be considered unfair if either the reason or the procedure is unreasonable.
In most cases, employees must have at least two years of continuous service to bring an unfair dismissal claim, although there are some exceptions.
What Is Wrongful Dismissal?
Wrongful dismissal is different because it is based on contract law rather than employment rights.
A wrongful dismissal claim arises when an employer breaches the terms of the employment contract when terminating employment.
Common examples include:
- Failing to provide the required notice period
- Failing to make a payment instead of notice where required
- Dismissing an employee in breach of contractual procedures
- Terminating employment without justification where the contract requires notice
An employee does not need two years of service to bring a wrongful dismissal claim because the issue relates to contractual rights rather than statutory employment rights.
Can a Dismissal Be Both Unfair and Wrongful?
Yes.
A dismissal can be both unfair and wrongful at the same time.
For example, an employer may dismiss an employee without a fair reason and also fail to provide the contractual notice period. In that situation, the employee may potentially have both an unfair dismissal claim and a wrongful dismissal claim.
Key Differences at a Glance
| Unfair Dismissal | Wrongful Dismissal |
| Based on employment law | Based on contract law |
| Focuses on the reason and procedure for dismissal | Focuses on breach of contract |
| Usually requires two years’ service | No minimum service requirement |
| Assessed by employment tribunal rules | Assessed by contractual obligations |
| May result in compensation for unfair treatment | May result in compensation for financial losses caused by the breach |
What Should You Do If You Have Been Dismissed?
If you believe your employment has been terminated unfairly or in breach of your contract, it is important to seek legal advice as soon as possible.
Employment claims are subject to strict time limits, and understanding whether your situation involves unfair dismissal, wrongful dismissal, or both can help determine the best course of action.
Obtaining advice early can help you assess the strength of your claim, understand your rights, and ensure important deadlines are not missed.
Speak to Our Employment Lawyers
If you have been dismissed and are unsure whether you may have a claim for unfair dismissal or wrongful dismissal, our experienced employment lawyers can help.
We provide clear, practical advice on your rights, potential claims, and the options available to you. Contact Fitz Solicitors today to discuss your situation with a member of our employment law team.