Wrongful Dismissal CASES
In English law, wrongful dismissal occurs when an employer terminates an employee’s contract without adequate notice or in breach of contractual terms regarding termination.
Definition and Principles
Wrongful dismissal involves a breach of the employment contract, specifically failing to provide the required notice period or not following agreed termination procedures, rather than issues of fairness.
Legal Consequences
- Typically resolved through contractual claims.
- Compensation usually covers wages and benefits for the notice period not provided.
Distinction from Unfair Dismissal
- Wrongful dismissal is contractual, focusing on notice requirements.
- Unfair dismissal concerns the statutory right not to be dismissed unfairly, based on employer conduct or dismissal reasons.
Practical Importance
Understanding wrongful dismissal ensures employers comply with notice periods and termination procedures, and employees understand their contractual rights upon termination.
Home » Wrongful Dismissal
A company appointed a managing director for a ten-year term. After a takeover, the company's articles were changed, enabling his removal. The court held this was a wrongful dismissal, implying a term that the company would not prevent his service. Facts In December 1933, the plaintiff, Mr Arthur Shirlaw, was appointed as the managing director of Southern Foundries (1926) Ltd (‘Southern’) for a fixed term of ten years. The appointment was made under an agreement. In April 1936, another company, Federated Foundries Ltd (‘Federated’), acquired the shares of Southern. Federated then altered Southern’s articles of association, adopting a new set
Facts The plaintiff, Mr. Addis, was employed by the defendant, Gramophone Company Ltd., as their manager in Calcutta, India. His employment contract stipulated a salary of £15 per week and a commission on trade done. The contract was terminable upon six months’ notice. In October 1905, the company gave Mr. Addis the required six months’ notice of termination. However, they concurrently appointed his successor and took immediate steps to prevent him from performing his duties as manager. This action constituted a wrongful and abrupt dismissal, forcing Mr. Addis to return to England. At first instance, the jury awarded him £600
