Wrongful and Unfair Dismissal in the UK (2026): A Complete Legal Guide for Employees and Employers

Dismissal from employment when an employee’s job is ended by their employer is a common but legally complex area of UK employment law. While employers may lawfully dismiss staff in many situations, UK law protects employees from being dismissed unfairly or in breach of contract, with distinct legal causes of action for unfair dismissal and wrongful dismissal.

Understanding the differences, the legal tests, how to claim, and the potential outcomes is crucial for:

• Employees who believe they have been unlawfully dismissed;

• Employers seeking to avoid costly tribunal claims;

• HR professionals and business owners are navigating dismissal processes.

This in-depth guide draws on government guidance, statutory law, employment tribunal case updates, and authoritative legal sources to explain everything you need to know clearly and practically.

1. What Is a Dismissal?

In UK law, dismissal occurs when an employer terminates an employee’s contract of employment. This termination may be with notice, without notice, by expiry of a fixed-term contract, or by constructive resignation (where the employee feels forced to resign). The way a dismissal is handled, and the reasons behind it, can give rise to different legal claims. GOV.UK

There are four core legal concepts you need to understand:

1. Fair dismissal: lawful and properly handled dismissal;

2. Unfair dismissal: where statutory protections are breached;

3. Wrongful dismissal: where the employment contract is breached;

4. Constructive dismissal: where the employer’s conduct forces the employee to resign, treated as dismissal

2. Unfair Dismissal: Legal Framework

2.1 What Is Unfair Dismissal?

Unfair dismissal is a statutory cause of action under UK law, primarily governed by Part X of the Employment Rights Act 1996 and interpreted through decades of case law. Legislation.gov.uk

You may be unfairly dismissed if:

• Your employer did not have a fair reason to dismiss you; or

• The reason was fair, but the employer did not act reasonably in all the circumstances; or

• The employer failed to follow a fair procedure in dismissing you, including disciplinary and appeal processes. Acas

2.2 Statutory Fair Reasons for Dismissal

The law recognises certain “fair reasons” for dismissal:

1. Capability – performance or qualifications issues.

2. Conduct – behaviour issues like gross misconduct.

3. Redundancy – genuine reduction in workforce need.

4. Statutory restriction – where statute makes employment unlawful (e.g., loss of professional licence).

5. Some other substantial reason – a flexible category for other legitimate reasons.

PRO TIP: Even if a reason falls within these categories, a dismissal may still be unfair if the employer did not act reasonably, took disproportionate action, or failed to follow fair procedures.

2.3 Fair Procedures: Why They Matter

A fair dismissal process must usually include:

• Investigation before disciplinary action;

• Clear communication of allegations or performance issues;

• Opportunity for the employee to respond;

• Right to be accompanied at disciplinary meetings;

• Fair appeal process following dismissal. Acas

If these procedural safeguards are not followed, tribunals often find dismissal unfair. Recent tribunal cases illustrate how poor procedure alone can lead to successful unfair dismissal claims, even in cases of alleged misconduct.

3. When You Can Claim Unfair Dismissal

3.1 The Qualifying Period

Traditionally, most employees needed at least two years’ continuous service before claiming unfair dismissal at a tribunal.

However, recent legislative developments are reshaping this requirement:

• The UK Government has committed to reducing the qualifying period to six months from 2027, making unfair dismissal protections accessible earlier in employment. 

Until that change takes effect, the two-year service rule generally applies, except in cases of automatically unfair dismissal.

3.2 Automatically Unfair Dismissals

Some dismissals are automatically unfair, meaning there is no qualifying period, and the claim can be brought immediately, such as:

• Being dismissed for asserting statutory rights (e.g., whistleblowing, flexible working requests).

• Dismissal related to pregnancy and maternity rights.

• Being dismissed for health and safety complaints.

• Being dismissed for trade union activities or representation.

• Being dismissed for taking protected leave, such as parental leave.

Such protections are crucial, as they protect employees from discriminatory or retaliatory dismissal from day one in most cases.

3.3 Constructive Dismissal

Constructive dismissal occurs when an employee resigns because their employer has fundamentally breached the contract, making continued employment untenable.

Examples include:

• Sudden significant changes to job duties without agreement;

• Failure to pay salary;

• Harassment or bullying that the employer fails to address.

• Whistleblowing (public harm)

Although constructive dismissal is technically a type of unfair dismissal, it requires proof that the breach was so serious that the employee had no reasonable option but to resign.

3.4 Time Limits for Unfair Dismissal Claims

Claims must be made quickly usually within three months minus one day from the date of dismissal. This strict deadline applies to both unfair and constructive dismissal claims.

4. Wrongful Dismissal: Legal Principles

4.1 What Is Wrongful Dismissal?

Wrongful dismissal is a contractual claim not a statutory right that arises when an employer breaches the terms of the employment contract when dismissing an employee.

Typically this happens when an employer:

• Fails to give the contractual notice required;

• Fails to pay notice pay where notice is required; or

• Ends a fixed-term contract early without contractual authority.

Unlike unfair dismissal, wrongful dismissal does not depend on the fairness of the reason for dismissal only whether the employer complied with the employment contract.

4.2 Notice Requirements

Most contracts govern what notice must be given. If the employer dismisses without giving the required notice (or appropriate payment in lieu of notice), that is a breach of contract, which is wrongful.

In the absence of a specific contractual term, there is a statutory minimum notice under UK law generally:

• At least one week’s notice for each year of service, up to 12 weeks.

Wrongful dismissal claims are usually limited to financial losses, such as wages and benefits that would have been earned during the notice period.

4.3 No Minimum Service Requirement

Unlike unfair dismissal, an employee can bring a wrongful dismissal claim regardless of how long they have worked, because contractual rights exist from day one.

For example, an employee dismissed on their first day without any notice could still bring a wrongful dismissal claim even though they lack statutory unfair dismissal rights.

4.4 Remedies for Wrongful Dismissal

Remedies are typically financial, compensating the employee for losses due to the breach, especially:

• Lost pay during the notice period;

• Contractual benefits lost (e.g., pension contributions).

In some cases, damages in excess of contractual notice may be sought through the common law where a fundamental breach occurred.

5. Key Differences: Wrongful vs Unfair Dismissal

Many dismissals involve both claims together — e.g., if an employee is dismissed for a potentially unfair reason and also without proper notice.

6. Constructive Dismissal and Related Claims

Constructive dismissal — as outlined above — occurs when an employee feels compelled to resign because of a fundamental breach of contract by the employer.

This claim is often made alongside unfair dismissal (since constructive dismissal is assessed under the unfair dismissal framework) but may also engage wrongful dismissal principles if contractual notice was not honoured.

7. Employment Tribunal Process

7.1 Early Conciliation

Before bringing most unfair dismissal claims, an employee must notify Acas and attempt Early Conciliation. Only after conciliation discussions can a tribunal claim (ET1) be submitted. Acas

7.2 Evidence and Decision

At tribunal, the employer must justify the dismissal and show:

• A valid statutory reason existed;

• The employer acted reasonably;

• A fair process was followed.

For wrongful dismissal, the issue is whether the contract was breached — a narrower question.

7.3 Remedies

If successful, remedies for unfair dismissal can include:

• Compensation (basic award + compensatory award);

• In limited cases, reinstatement or re-engagement orders;

• In wrongful dismissal claims, damages for financial loss

Government proposals may increase or change awards, including removing caps on compensation, but reforms are still progressing.

8. Examples and Case Law Insights

UK tribunals regularly provide examples illustrating these principles. For instance:

• A tribunal ruled that dismissing an employee without fair investigation, even for inappropriate conduct, can be unfair.

PRO TIP: In the Essex County Council v Pardoe case, an employment tribunal held dismissals both wrongful and unfair, highlighting that tribunals can assess both claims separately. 

9. Practical Steps for Employers

To minimise risks of wrongful or unfair dismissal claims:

• Always comply with contractual notice provisions.

• Follow fair disciplinary and dismissal procedures;

• Document performance issues and meetings;

• Offer opportunities for improvement/appeal;

• Seek HR/legal advice before dismissal.

10. What Employees Should Do If Dismissed

If you believe your dismissal was wrongful or unfair:

1. Keep records of contracts, dismissal letters, warnings, and correspondence.

2. Seek legal advice or trade union support early.

3. Engage with Acas Early Conciliation for unfair dismissal.

4. Submit tribunal claims before the deadline (usually 3 months less one day).

FINALLY

Wrongful and unfair dismissal are distinct but sometimes overlapping legal concepts in UK employment law:

• Wrongful dismissal focuses on contractual breaches, especially notice, terms etc;

• Unfair dismissal focuses on the fairness of reason and process under the statute.

Both have serious consequences for employers, including financial awards and reputational risk, and offer important protections to employees. Understanding these distinctions and legal tests and acting early is essential for any equitable workplace.

Always seek help from a professional body or person.