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...

Wrongful dismissal: mitigation of loss - scope, exceptions (PILON/liquidated damages), refusal of re-employment, self-employment and shareholdings, damages calculation and evidential burden

Published by a LexisNexis Employment expert

Practice notes

Duty to mitigate loss after Wrongful Dismissal

This Practice Note sets out a claimant’s obligation to reduce their loss by taking sensible measures to secure fresh employment after being wrongfully dismissed. It explains the practical operation of this duty in the context of wrongful dismissal claims. It highlights when this duty lapses.

It addresses:

the reach of the duty to mitigate
when the duty will not apply
the effect of an offer to reinstate the claimant to their former role
the outcomes of a failure to mitigate
the burden of proof in such matters

A wrongfully dismissed employee must take reasonable steps to mitigate their loss, usually by making genuine efforts to obtain another job. Where they do find alternative work, they must give credit to the former employer for salary and benefits earned in that role. Reasonable costs incurred while mitigating (eg travelling to interviews) are recoverable as part of the compensation. For further information, see Practice Note: Wrongful dismissal compensation. The duty requires the employee to behave as they would have done had they not anticipated receiving any compensation from their previous employer...

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Web page updated on 21/05/2026

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