Jurisdiction(s):
United Kingdom

Related legal acts

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...

Damages for lost benefits in wrongful dismissal: valuing insurance, cars, travel, pensions and share incentives; exclusions, PILON/Lavarack, tax, mitigation and accelerated receipt.

Published by a LexisNexis Employment expert

Practice notes

This Practice Note considers how various benefits are valued when calculating damages in an employment Wrongful Dismissal Claim

This note explains the approach to valuing benefits when assessing damages for wrongful dismissal in employment cases. It covers:

private medical insurance
permanent health insurance
life assurance
company cars
other travel benefits

It also addresses share incentive rights and the impact of exclusion clauses that seek to remove any entitlement to compensation for lost share incentive rights on termination of employment, or within a specified period afterwards. Damages may additionally include the value of pension benefits that would have built up during the notice period. The pension consequences of wrongful dismissal can be complex and are subject to specific presidential guidance. See Practice Note: Calculating pension loss in employment tribunal claims.

For wrongful dismissal (ie a Dismissal in breach of contract), the remedy is an award of damages intended to place the Employee in the position they would have occupied if the employer had brought the contract to an end lawfully (ie without breaching it). The focus is on losses caused by the breach itself, rather than losses attributable to other factors...

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Web page updated on 21/05/2026

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