Jurisdiction(s):
United Kingdom

Key definition

Wrongful Dismissal definition

What does Wrongful Dismissal mean? In practice, wrongful dismissal is a contractual employment claim where the employer ends employment in breach of the contract. It is a common‑law term, not defined in statute, and is used consistently across England & Wales, Scotland, Northern Ireland and Ireland. It typically arises where the employer: (a) dismisses without giving the contractual (or statutory minimum) notice; (b) makes, or withholds, a payment in lieu of notice (PILON) without a contractual right or in the wrong amount; (c) summarily dismisses without gross misconduct; or (d) ends a fixed‑term contract early without a contractual break right. Constructive wrongful dismissal can arise where...

Assessing accelerated receipt discounts in wrongful dismissal awards: methodology, Ogden Tables and current discount rates (England, Wales and Scotland)

Published by a LexisNexis Employment expert

Practice notes

This Practice Note considers the situations in which an award of compensation may be reduced for early receipt, i.e. where a sum is paid before the date on which it would have been paid had the person remained in employment. Claimants who succeed in Wrongful Dismissal actions, resulting in an award of compensation, may be paid certain amounts either before or after the dates on which those amounts would have been received had their employment continued. Where a sum is paid before the date on which it would have fallen due if the individual had stayed employed, a deduction for early receipt may be appropriate, as outlined below. Where a sum is received after that date, the claimant will be entitled to interest (see Practice Note: Interest in wrongful dismissal claims).

Discount for accelerated receipt

Accelerated receipt is the counterpart of interest. Interest compensates a party who did not receive money when it fell due, because late payment deprived that party of the opportunity to invest and earn a return. Accelerated receipt involves discounting a compensatory payment where money is received earlier than it would have been in the ordinary course of continued employment had they remained employed as normal...

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Web page updated on 21/05/2026

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