What is the difference between wrongful and unfair dismissal?

Wrongful dismissal and unfair dismissal are two distinct legal claims that are often confused. Wrongful dismissal is a claim based in contract law. It arises when an employer breaches the terms of the employment contract in the act of dismissing the employee — most commonly by dismissing without giving the contractual or statutory notice period, or by summarily dismissing without grounds where summary dismissal is not contractually permitted. The compensation for wrongful dismissal is the net loss of earnings during the notice period that should have been worked or paid. There is no qualifying period of employment required to bring a wrongful dismissal claim, and it can be brought both in the employment tribunal (up to £25,000) or in the civil courts (for higher value claims). Unfair dismissal, by contrast, is a statutory right under the Employment Rights Act 1996 and focuses on whether the employer had a fair reason for dismissal and followed a fair procedure. It requires a minimum of two years' qualifying service (with exceptions) and must be brought in the employment tribunal within three months. Compensation can be significantly higher than for wrongful dismissal. In practice, many dismissed employees bring both claims simultaneously — for example, where they were dismissed without notice (wrongful dismissal) for a reason that was also unfair (unfair dismissal). Legal advice can help determine which claims are appropriate in any given situation.