Section A

In employment law, what is 'wrongful dismissal'?

Answer options:

Dismissal for an unfair reason under the Employment Rights Act 1996.

Dismissal in breach of the terms of the employment contract, usually relating to notice.

Dismissal due to the closure of the business.

When an employee resigns due to the employer's fundamental breach of contract.

How to approach this question

Differentiate between the common law claim (wrongful) and the statutory claim (unfair).

Full Answer

B.Dismissal in breach of the terms of the employment contract, usually relating to notice.✓ Correct

Wrongful dismissal is a common law claim for breach of contract. It occurs when an employer dismisses an employee without giving the proper notice required by the contract (or statute), unless the employee has committed gross misconduct justifying summary dismissal.

Common mistakes

Confusing wrongful dismissal with unfair dismissal.

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Practice the full ACCA LW — Corporate and Business Law Practice Exam 6

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