When dismissing an employee, some businesses can get confused by some of the terminology. The difference between unfair dismissal and wrongful dismissal, for example, can make matters more complicated when already contemplating a difficult subject.
In this guide, we explain the differences and what you need to keep in mind when dismissing a staff member.
What is wrongful dismissal in Ireland?
Wrongful dismissal is a common law claim which is essentially a breach of contract claim. Under wrongful dismissal at common law, an ex-employee is likely to identify a specific breach of the terms of the contract of employment to pursue a claim for damages against your business.
Unfair dismissal is a claim an employee makes under the Unfair Dismissals Acts. To make an unfair dismissal claim, the employee must lodge his/her claim in accordance with the terms of the unfair dismissals legislation.
Wrongful dismissal qualifying period
Employees who have not acquired statutory employment rights by completing the minimum continuous period of service required by employment statutes tend to sue for wrongful dismissal. Staff members don't need to complete any specific period of service to make a claim for wrongful dismissal. Wrongful dismissal claims are exclusively about a breach of the employment contract.
Common wrongful dismissal cases
A common reason for wrongful dismissal claims is the non-payment of wages that an employer might owe to an employee. Unpaid wages can be in the form of:
- Outstanding salary.
- Holiday pay.
- Commission.
- PILON (pay in lieu of notice).
If you don’t pay this money to your former employee, then they can make a claim (under employment law) for wrongful dismissal.
Wrongful dismissal time limit
As a wrongful dismissal claim is a breach of contract claim, it must be made within 6 years of the alleged breach of contract under the terms of the Statute of Limitations. It is important to remember that employees must choose between either a wrongful dismissal claim or an unfair dismissal claim. They cannot make both claims.
An unfair dismissal claim is subject to much stricter time limits.
Need further help?
If you would like further complementary advice on wrongful dismissals from an expert, our advisors are ready to take your call any time day or night. Call us on 0818 923 923 or request a callback here.
