What is the Difference Between Wrongful and Unfair Dismissal?

The main difference between wrongful and unfair dismissal lies in the nature of the claims and the legal framework they fall under. Here are the key differences:

1. Nature of the claim: Wrongful dismissal focuses on a contractual breach, such as terminating employment without giving the correct amount of notice specified in the contract. Unfair dismissal, on the other hand, is a statutory right under the Employment Rights Act 1996, and it occurs when an employee is dismissed for a reason that is not considered fair.
2. Length of service: For an employee to claim unfair dismissal, they must have two years of continuous service with the employer. In contrast, wrongful dismissal does not require a set period of continuous service.
3. Fair reasons for dismissal: To establish a claim for unfair dismissal, the employee must be dismissed for a reason that is not considered fair. The five fair reasons for dismissal listed under the Employment Rights Act are capability, conduct, redundancy, statutory illegality, and "some other substantial reason". Wrongful dismissal does not depend on the reason for dismissal but rather on whether the contract was breached.
4. Legal framework: Unfair dismissal is a statutory right under the Employment Rights Act 1996, while wrongful dismissal is a contractual right that falls under common law.
5. Where to bring a claim: Claims for wrongful dismissal can be brought before the County Court, High Court, or an Employment Tribunal, depending on the value of the claim. Unfair dismissal claims can only be brought before an Employment Tribunal.

In summary, wrongful dismissal is based on a contractual breach, such as not providing the correct notice period, while unfair dismissal is based on a statutory right under the Employment Rights Act 1996 and depends on the reason for dismissal being fair.

Comparative Table: Wrongful vs Unfair Dismissal

The key difference between wrongful and unfair dismissal lies in the nature of the claims: wrongful dismissal is a contractual right, while unfair dismissal is a statutory right under the Employment Rights Act. Here is a table summarizing the differences between the two:

In summary, wrongful dismissal focuses on a breach of the employment contract, typically related to the notice period, and is a contractual right. Unfair dismissal, on the other hand, is based on whether the dismissal was fair or not, and there are five fair reasons for dismissal listed under the Employment Rights Act. An employee must have two years of continuous service with the employer to claim unfair dismissal.