Medium2 marksMultiple Choice
Corporate and Business LawSection ASyllabus CEmployment Law

ACCA · Question 12 · Corporate and Business Law

What is the primary difference between wrongful dismissal and unfair dismissal?

Answer options:

A.

Wrongful dismissal requires 2 years of continuous service, unfair dismissal does not.

B.

Wrongful dismissal is a breach of contract claim, whereas unfair dismissal is a statutory claim.

C.

Wrongful dismissal can only be claimed by independent contractors.

D.

There is no difference; they are two terms for the same legal concept.

How to approach this question

Distinguish between common law contract rights and statutory employment rights.

Full Answer

B.Wrongful dismissal is a breach of contract claim, whereas unfair dismissal is a statutory claim.✓ Correct
Wrongful dismissal is a common law breach of contract (usually failure to give contractual notice). Unfair dismissal is a statutory right under the Employment Rights Act 1996, protecting employees from being dismissed without a fair reason and fair procedure.

Common mistakes

Using the terms interchangeably.

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