Our employment team, led by Navya Shekhar, specialises in wrongful dismissal claims. We often represent our clients using No Win, No Fee agreements or by using our client’s home insurance, at no cost to them. Alternatively, we offer affordable rates and fixed fees.
What is wrongful dismissal?
Wrongful dismissal simply is a dismissal in breach of an employment contract. The contract can be written or oral. Unlike in an unfair dismissal claim, fairness is not at issue. A wrongful dismissal claim may arise out of an actual dismissal or a constructive dismissal.
There is no need for any qualifying period (continuous period of employment) to bring a wrongful dismissal claim. When defending a wrongful dismissal claim, an employer may rely on facts that they found out after the dismissal to justify their position.
It is therefore possible for a dismissal to be wrongful but not unfair.
Wrongful dismissal: County Court or Employment Tribunal?
A claim for wrongful dismissal may be brought in the County or High Court or in the Employment Tribunal. Normally, an employee who wants to bring a wrongful dismissal claim in an Employment Tribunal must commence ACAS Early Conciliation within three months less one day of the Effective Date of Termination. Whereas a Claimant who wants to bring a wrongful dismissal claim in a County or High Court has six years from the Effective Date of Termination to bring a claim for the purposes of the Limitation Act 1980.
The potential recovery of costs may also be a factor in the advice given by a solicitor in respect of the appropriate court to pursue a wrongful dismissal claim in as generally there is limited capacity to recover legal fees from a losing party in the Employment Tribunal. Careful consideration is required as to which is the best court or tribunal to bring a wrongful dismissal claim.
Key Stages of a Wrongful Dismissal Claim
1. Initial Consultation
Purpose: To assess the details of your case, provide preliminary advice, and discuss your options. We offer a fixed fee of £380 including VAT for an initial consultation.
Typical time estimate: 1-2 weeks to schedule and conduct the consultation.
2. Pre-Claim Conciliation (through ACAS)
Purpose: Before you can file a claim with the Employment Tribunal, you must notify ACAS to initiate the Early Conciliation process. This step aims to resolve the dispute without going to tribunal.
Typical time estimate: Up to 1 month.
3. Filing the Claim
Purpose: If conciliation is unsuccessful, we will help you prepare and submit your ET1 claim form to the Employment Tribunal.
Typical time estimate: 1-2 weeks.
4. Response from the Employer
Purpose: The employer has 28 days to respond to your claim by submitting an ET3 form.
Typical time estimate: 4 weeks.
5. Preliminary Hearing
Purpose: In some cases, a preliminary hearing may be necessary to clarify issues, manage the case, or decide on preliminary matters.
Typical time estimate: 1-2 months after the response is received.
6. Case Management Orders
Purpose: The tribunal may issue orders to manage the preparation of the case, such as disclosure of documents, witness statements, and setting deadlines.
Typical time estimate: Ongoing until the final hearing.
7. Disclosure and Exchange of Evidence
Purpose: Both parties must share relevant documents and evidence with each other.
Typical time estimate: 1-2 months.
8. Preparation of Witness Statements
Purpose: Drafting and finalising witness statements from you and any other witnesses.
Typical time estimate: 1-2 months.
9. Final Hearing
Purpose: The tribunal hearing where both parties present their cases, including evidence and witness testimonies.
Typical time estimate: 6-12 months from the date the claim is filed, depending on the tribunal’s schedule and complexity of the case.
10. Judgment
Purpose: The tribunal will issue its decision after considering all the evidence.
Typical time estimate: 1-3 months after the final hearing.
Employment Tribunal Costs
For a straightforward wrongful dismissal case, are costs are charged on the basis of the starting hourly rates set out below:
| Service | Truth Legal Expert | Cost |
| Employment Tribunal | Navya Shekhar (Head of Employment) | From £216 per hour including VAT. |
| Katherine Swinn | From £216 per hour including VAT. | |
| Miroslaw Ksiezarek (Mirek) | From £180 per hour including VAT. |
Please note, for more complex cases, the rates are likely to be higher.
The typical legal costs for taking a wrongful dismissal claim to trial range from £6,000 (including VAT of £1,000) to £16,800 (including VAT of £2,800). These estimates vary depending on the complexity and duration of the case.
We offer a fixed fee of £380 including VAT for an initial consultation.
No Win, No Fee Wrongful Dismissal Costs
At Truth Legal we may be able to offer a ‘no win no fee’ agreement, whereby 35% of your compensation is deducted as a legal fee. This will be taken from the figure awarded to you and can vary depending on what is agreed between the client and solicitor, and whether the case goes to an employment tribunal or county or high courts.
The maximum deduction of 35% could be taken from your settlement irrespective of how much work has been done towards the case. So, for example, if you were awarded £10,000 you would only receive £6,500 and the remaining £3,500 (including VAT) would be paid to the solicitor. In addition, you will be responsible for any disbursements you have instructed your solicitor to incur on your behalf.
Possible Disbursement for a Wrongful Dismissal Claim
When pursuing a wrongful dismissal claim, there are disbursements (out-of-pocket expenses) that you may need to cover in addition to our legal fees. These would still be required to be paid for by a client even if we are acting under a No Win, No Fee agreement. These can include:
1. Court fees:
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- If the claim is pursued in civil court rather than the Employment Tribunal, there may be court fees for filing and hearings.
- Typical range: £250 – £1,500 (including VAT).
2. Barrister’s fees:
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- If a barrister is instructed to represent you at hearings or provide specialist advice, their fees will be a significant disbursement. These can vary widely depending on the barrister’s experience and the complexity of the case. In most cases we would expect a trial for wrongful dismissal to last one to two days.
- Typical range: £1,200 – £6,000 per day (including VAT).
3. Expert witness fees:
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- If expert evidence is required (e.g., medical experts, financial experts), their fees will be included as disbursements.
- Typical range: £600 – £2,400 (including VAT).
- Typical range: £60 – £240 (including VAT).
Please note that these are typical ranges and actual costs may vary depending on the specifics of your case. We will discuss any potential disbursements with you in advance and seek your approval before incurring any significant expenses.
Can I use legal expenses insurance to fund a wrongful dismissal claim?
Legal expenses insurance can be used to fund a wrongful dismissal claim, provided you have the right cover in place and your insurers are satisfied that you have a reasonable chance of winning your claim. Legal matters relating to your employment are usually within the scope of legal expenses cover. If you do not have a separate legal expenses insurance policy, it is always worth checking other insurance policies you have, such as home insurance, as these can include legal expenses cover. Our guide on legal expenses insurance can give you more information.
How much compensation can I get for my wrongful dismissal claim?
Compensation for wrongful dismissal is capped at the notice period and/or the period of time it would have taken to complete a relevant contractual procedure – known as the “Gunton extension”. Compensation for wrongful dismissal should include the net value of salary (salary less tax) and any other contractual benefits to which the employee would have been due had they been allowed to work their notice, such as the value of a company car and private health insurance etc.
In an Employment Tribunal the maximum that a Tribunal can award for wrongful dismissal is capped at £25,000, but there is no such cap in the County or High Courts. If you have a high value wrongful dismissal claim, then it is of paramount importance that the claim is brought in the most appropriate court or tribunal.
Compensation for breach of a fixed-term contract
When a fixed-term contract, or a contract for a specified task, is terminated before the contract ends, or the task is complete, this will be a wrongful dismissal situation, unless the employer can show that there is a term of the contract which entitles them to dismiss in those particular circumstances. If the employer is in breach of contract by dismissing the employee, it will have to pay for the entirety of the rest of the term of the contract unless there is a provision within the contract for notice, or early termination, to be given.
When can an employer dismiss without notice?
- Where there is a Payment In Lieu of Notice (PILON) clause. A dismissal will not be wrongful where a contract explicitly allows that the employee is entitled to a payment in lieu of notice; or,
- If an employee commits gross misconduct.
An employer can dismiss an employee without notice when the employee has committed a very serious breach of the employment contract – gross misconduct. What constitutes gross misconduct is a question for the Employment Tribunal or Court.
When deciding whether something is sufficiently serious as to be gross misconduct, which would allow the summary dismissal of the employee, all the circumstances of the particular case will be relevant, including what the employer has stated in the staff manual or company handbook as amounting to gross misconduct. The main determining factor for deciding whether something is sufficiently serious to warrant summary dismissal for gross misconduct is whether trust and confidence is so undermined by the conduct of the employee.
We offer a 2 hour consultation for £380 including VAT. If you have a viable wrongful dismissal claim we will advise you on the available funding options for you, including No Win, No Fee agreements, use of your Legal Expenses Insurance, fixed fees or affordable hourly rates.
