Two commonly misunderstood terms in employment law are Unfair Dismissal and Wrongful Dismissal. Although they sound similar, they differ in their legal basis, focus and remedies.

Unfair dismissal is governed by the Employment Rights Act 1996 and focuses on whether the employer’s decision to terminate the employee was justified and handled fairly. Employees are required to have a period of two years qualifying service to challenge their dismissal as unfair, if they believe it was without a valid reason or carried out improperly.

Wrongful dismissal, however, arises from contract law rather than statutory law. It occurs when an employer breaches the terms of an employee’s contract – for example, failing to provide the correct notice period (or payment in lieu of notice). A wrongful dismissal claim does not focus on the reason for dismissal but rather on whether the employer adhered to the agreed contractual terms.

For Unfair Dismissal, the focus is on the reason and process of dismissal – for example, being dismissed for discriminatory reasons, without a valid reason such as redundancy, or not following a proper disciplinary or grievance procedure.

For Wrongful Dismissal, the focus is on the contractual rights of the employee. An employee might claim wrongful dismissal if the employer dismisses them without serving the correct notice period or breaches other contractual terms.

To make a claim for Unfair Dismissal, employees generally need a minimum of two years of continuous employment. However, some dismissals, such as those related to discrimination or whistleblowing, are deemed automatically unfair and do not require a qualifying period.

For Wrongful Dismissal, there is no minimum service requirement. Any employee with a valid contract can bring a claim if their contractual terms are breached.

Remedies for Unfair Dismissal are determined by a tribunal and can include the following:

Remedies for Wrongful Dismissal are primarily damages to compensate the employee for the financial loss caused by the breach of contract. This typically covers the unpaid notice period or other contractual entitlements, such as bonuses or benefits.

The government has recently introduced reforms to enhance worker protections and modify existing employment practices. One of the biggest changes is a new day-one right to claim Unfair Dismissal, removing the previous requirement of two years of continuous employment.

This change benefits employees by providing immediate protection against unfair dismissal, which can improve job security and confidence. However, for employers, it means greater responsibility from day one to document termination reasons properly and ensure legal compliance.

Unfair Dismissal and Wrongful Dismissal both relate to termination of employment but they differ in their legal foundations, focus and remedies. Employers must follow correct procedures and uphold contractual obligations to reduce the risk of legal disputes.

For employees, understanding the differences can help in seeking the appropriate legal advice if they believe their dismissal was unfair or unlawful.

If you are facing a dismissal issue and would like to seek legal advice, please contact our Employment Law team on 01604 936512 / 01908 953674 or email info@franklins-sols.co.uk.

Employment Rights Bill 2024 – Key Changes and Employer Implications

The Employment Rights Bill 2024 introduces several significant reforms designed to enhance employee protections while placing additional responsibilities on employers. Below is a breakdown of the key provisions and how they may impact businesses across the UK.

Key Provisions of the Employment Rights Bill

1. Flexible Working Requests – Employees can now submit flexible working requests from day one of employment. While employers can still refuse, they must provide a clear, written justification—such as the request being incompatible with operational needs.
2. Family Leave and Bereavement Rights – Employees are now entitled to parental, paternity and bereavement leave. Though beneficial to employees, this could present challenges for smaller employers in terms of continuity and staffing.
3. Statutory Sick Pay – Sick pay now begins from the first day of absence and is no longer subject to income thresholds. This reform increases employer costs, particularly in physically demanding sectors where illness-related absences are more common.
4. Zero-Hours Contract Regulations – Employers must now offer guaranteed hours to qualifying workers and provide reasonable notice for shift changes or cancellations. This reduces operational flexibility but enhances job security for staff.
5. Mandatory Equality Action Plans – Businesses with 250+ employees must now publish annual equality and diversity reports. This adds another compliance layer, requiring additional HR input and resource allocation.
6. Ban on Exploitative Internships – The bill proposes a ban on unpaid internships. While this may increase costs for employers, it ensures better clarity around intern rights and reduces the risk of legal disputes.
7. Ban on Fire and Rehire Practices – It will be automatically unfair to dismiss an employee solely to change their contractual terms. This limits employer flexibility during restructuring and may complicate legitimate contract negotiations.

How the 2024 Budget Impacts Employers

1. National Living Wage Increase – The rise in the National Living Wage helps close age-based pay gaps but also increases labour costs, particularly in industries like retail and hospitality.
2. Business Tax Adjustments – New tax reliefs for green investments and training aim to promote sustainable business practices. However, many employers may still feel the pressure of an overall high tax burden.
3. Support for SMEs – Additional funding for digital upgrades and energy-efficient systems supports long-term SME growth. However, navigating these grants and schemes may introduce extra administrative complexity.
4. Infrastructure and Training Investments – Funding for vocational training and upskilling is a long-term benefit but may initially require employers to invest time and effort in retraining or reallocating staff.

Conclusion: While the Employment Rights Bill and 2024 Budget introduce reforms that enhance employee protections and workplace fairness, they also pose new challenges for employers. Businesses must now strike a balance between compliance, cost-efficiency and employee well-being to remain competitive and sustainable.

If you require tailored advice on employment law matters, please contact our Employment Law team on 01604 936512 / 01908 953674 or email info@franklins-sols.co.uk.

What is a Declaration of Trust?

A Declaration of Trust is a legal document that establishes the ownership arrangement and beneficial interests in a property.

It is usually made when individuals decide to buy a property together. Its main purpose is to remove any uncertainty about each person’s financial interest and what will happen to their money should the property be sold in the future.

Who Should Get a Declaration of Trust?

A Declaration of Trust is particularly important in the following situations:

1. Cohabiting couples – It ensures each party’s financial contributions are acknowledged and protected, helping to avoid disputes if the couple separates and the property is sold.
2. Friends or family buying together – When friends, siblings, or family members invest in property jointly, a clear agreement helps prevent future disagreements over ownership and contributions.
3. Unequal contributions – If one party contributes significantly more toward the purchase price or ongoing mortgage, a Declaration of Trust clarifies the ownership shares accordingly.

Benefits of Having a Declaration of Trust

• Provides all parties with a clear understanding of their rights and responsibilities, reducing the risk of future disputes.
• Documents financial contributions, protecting each party in cases of relationship breakdown or financial disagreements.
• Sets out clear instructions for selling the property or transferring ownership, reducing stress and conflict.
• Can be updated or modified to reflect changes such as refinancing or adjusted ownership shares.

How Can a Declaration of Trust Be Set Up?

It is advisable to instruct a solicitor specialising in this area. They will guide you through the process to ensure the document is tailored to your needs and drafted correctly.

At Franklins, the process begins with an appointment to discuss ownership details and financial contributions. The solicitor will also explain any risks or considerations. After this meeting, the Declaration of Trust will be prepared to reflect the agreed terms.

For further advice and assistance, please contact our Wills, Trusts and Probate team on 01604 828282 / 01908 660966 or email info@franklins-sols.co.uk.