A changing landscape?

The law of unfair dismissal provides a remedy to employees whose termination has breached the generally accepted norms of industrial fairness set out in the Employment Rights Act 1996. On the other hand an action for wrongful dismissal provides a remedy based squarely on the law of contract. Practitioners have been advising clients about the practical effects of choosing between a wrongful dismissal case in the county court and an unfair dismissal case in the tribunal for many years. Most practitioners learn, at an early stage of their careers, the difference between the rules governing the award of compensation in both jurisdictions.

While the statutory cap on compensation for unfair dismissal has crept upwards (it is now £63,500) the rules governing the award of damages for wrongful dismissal have remained, for the most part, not only stable but also consistent with the general principles of contract law. In Gunton v Richmond Upon Thames