Dismissal can occur for various reasons, but it is crucial to distinguish between wrongful and unfair dismissal. These two types of dismissal have distinct legal definitions and implications.

 Wrongful Dismissal

Wrongful dismissal occurs when an employer breaches the terms of an employee’s contract. The most common breach is the failure to provide the required notice period before terminating the employment. The notice period should be stated in the employment contract, or if not, statutory minimum notice periods apply based on the length of service. For example, an employee with two years of continuous service is entitled to a minimum of two weeks’ notice. Compensation for wrongful dismissal typically involves payment for the notice period that was not honoured.

Unfair Dismissal

Unfair dismissal, in contrast, concerns the fairness of the dismissal process and the reasons behind it. The Employment Rights Act 1996 stipulates that dismissals must be fair and justified. Grounds for fair dismissal include capability or qualifications, conduct, redundancy, breach of statutory duty, or some other substantial reason (SOSR). For a dismissal to be considered fair, the employer must follow a fair procedure, which includes conducting a proper investigation, holding a disciplinary hearing, and allowing the employee to appeal the decision.