Unfair dismissal occurs where an employee is dismissed without good reason, without a fair procedure having been followed or where the dismissal is for one of several reasons regarded as automatically unfair, for example where a woman is dismissed for a reason related to her pregnancy.

Wrongful dismissal arises where an employer has broken the contract of employment with the employee. Wrongful dismissal, which is based on contract law, should not be confused with unfair dismissal where the remedies are contained in legislation.

Constructive dismissal arises when an employee resigns because the employer’s conduct has been such that there has been a fundamental breach of the contract of employment. It may give rise to a claim for both unfair dismissal and wrongful dismissal.

Dismissal for gross misconduct can occur where an employee has acted in such a way that the consequences to the business are damaging or in such a way that the employer could not be expected to continue to employ that person. In these circumstances the employee may be dismissed with immediate effect.