Wrongful dismissal may arise out of an actual or constructive dismissal. It differs from unfair dismissal because fairness is not an issue. The only question to be determined is whether the terms of the contract of employment, either express or implied, have been breached causing the employee loss. In certain circumstances, an employer’s breach can release the employee from their restrictive covenants.
The following types of breach are:
- Breach of a notice term, whether express, implied or statutory
- Breach of a contractual disciplinary or redundancy procedure
- Termination of a fixed-term contract before its expiry
An employer can dismiss without notice:
- Where there is a payment in lieu of notice clause in the contract
- Where the employee has committed an act of gross misconduct