The Key Difference
Unfair dismissal is a statutory claim under the Employment Rights Act 1996. Wrongful dismissal is a contractual claim -- a claim that the employer dismissed you in breach of your employment contract. They often arise from the same dismissal but are entirely separate claims with different rules.
No Qualifying Period
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Unlike unfair dismissal, wrongful dismissal has no qualifying period. You can bring a wrongful dismissal claim from the first day of employment. This makes it the only dismissal claim available to employees dismissed within their first two years of employment.
What Wrongful Dismissal Covers
The most common form of wrongful dismissal is dismissal without proper notice -- where the employer terminates the employment without giving the notice required by the contract or the statutory minimum, whichever is longer. The statutory minimum is one week per year of service up to 12 weeks.
Compensation
Wrongful dismissal compensation is limited to what you would have earned during the notice period, less income earned elsewhere. The employment tribunal has jurisdiction up to £25,000. For larger claims, you must go to the civil courts.
When to Bring Both Claims
Where you have both unfair dismissal and wrongful dismissal claims, bring both. They have different tests, different compensation rules, and different caps. The wrongful dismissal claim ensures you recover at least notice pay even if the unfair dismissal claim fails on the range of reasonable responses test.