Employee Actions for Breach of Contract
An employee who does not have the qualifying period of continuous employment does not usually qualify to claim in an employment tribunal that his or her dismissal was unfair. The qualifying period is two years, but from 1 January 2027 it is six months where the employment ends on or after that date (or would have, if the statutory minimum notice had been given), even if notice was given before then.
However, if they have not received their due contractual notice or other contractual entitlement could exceed what an employment tribunal would award for unfair dismissal (e.g. a senior executive on a rolling or fixed-term employment contract) the civil courts offer the action of breach of contract and potentially unlimited damages.
It is also open for the employee to sue in an employment tribunal for breach of contract, but any such claim must be limited to £25,000. They can pursue higher claims in civil courts.
Where the dispute involves a director or senior employee, with a long term or rolling contract, compensation by way of a golden handshake can dwarf employment tribunal awards. For most non-qualifying employees, however, a breach of contract claim will generally be limited to unpaid notice and money in lieu of untaken holidays.
There is no compensation for hurt feelings, damage to reputation or not receiving of discretionary non-contractual benefits and bonuses in breach of contract terms.