Unfair dismissal remedies

The essential difference between unfair dismissal and wrongful dismissal is the source of the employee’s rights. In the situation of Unfair Dismissal, the em,p[loyee has statutory rights conferred by the Employment Rights Act 1996 whereas, in the case of Wrongful Dismissal, the employee’s rights are a matter of contract – that is, the employee’s rights are set out in a contract of employment

The different remedies for the two types of dismissal are cut and pasted from Wikipedia

Remedies for unfair dismissal
The financial remedy for unfair dismissal includes a basic award, calculated by reference to age, length of service and salary (subject to a cap), and a compensatory award, which is subject to a maximum of one year of an employee’s gross pay or £88,519 (whichever is lowest). This includes compensation for the loss of statutory rights, a sum of between £250 and £500 to acknowledge the fact that the employee will have to start accruing length-of-service-related benefits again. Other potential remedies include reinstatement or re-engagement.

Remedies for wrongful dismissal
If an employer wrongfully dismisses their employee, they will be liable to pay damages to put them back in the position they would have been in had the contract been terminated in accordance with its terms. Therefore, damages will reflect the net value of wages and any other contractual benefits to which the employee would have been entitled had they been allowed to work out their notice.

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