Wrongful Dismissal
(DISMISSAL IN BREACH OF CONTRACT)
What is a - Employee (or worker) will have a claim for damages against his employer if been
dismissal? dismissed in breach of contract.
- If there is no dismissal, there cannot be a claim for wrongful dismissal. Instead,
there would be a general breach of contract claim.
Time Limits - Claim can be pursued in civil courts or emp tribunal
EMP TRIBUNAL CIVIL COURT
Must be within 3 months BACK A DAY from the Must be brought before the
date of dismissal/ termination civil courts within 6 years of
Max claim: £25,000 Cap on Damages (Employment the dismissal (Limitation Act
Tribunal’s Extension of Jurisdiction order 1994, 1980, s5).
Article 10)
The tribunal cannot hear all claims arising out of an No maximum payment
alleged breach – e.g. claims relating to contractual
terms of confidentiality and restrictive covenants More expensive to pursue
are excluded (1994 Order, arts 3, 5);
- Note: NO CONTINUOUS EMPLOYMENT RESTRICTION. An employee is eligible to
bring a claim of Wrongful Dismissal from Day 1.
Has there been - Actual Dismissal
a dismissal? o The Employee’s FIXED TERM contract is terminated by the employer (1 )
o The Employee’s contract is terminated by the employer (2 ))
- Constructive Dismissal (3 )
o I.e. where the employee resigns and can show that they were entitled to do
so by virtue of the employer’s conduct.
What is not a - When an employee:
dismissal? - Resigns
- Leaves by mutual agreement
- Whose contract is frustrated (e.g someone dies/imprisonment)
Not been dismissed and are not eligible for statutory claim
Step (1)
Actual Dismissal Where there is a FIXED TERM Contract
Is there a - IF NO
break o The employee will have been wrongfully dismissed regardless of whether or not the
clause in employer gave notice.
the o UNLESS
contract? The employee was in repudiatory breach of contract or
The parties agreed to terminate.
- IF YES and…