This article applies to England, Wales and Scotland.
Important: This guide provides information about UK employment law. It is not legal advice. Every situation is different. If you believe your employer has breached your contract, consider speaking to a qualified employment solicitor for advice specific to your circumstances.
In brief: Breach of employment contract occurs when your employer fails to honour the terms of your agreement — such as not paying agreed wages, dismissing you without notice, or changing your hours without consent. You have 3 months minus 1 day to bring a claim at tribunal. Compensation covers actual financial losses, capped at £25,000 at tribunal. No minimum service period applies.
Last updated: March 2026
Your employer just changed your contract. Maybe they cut your hours without asking, stopped paying your contractual bonus, or moved you to a different office 50 miles away without your agreement.
You feel something is wrong, but you are not sure whether it is actually unlawful. And even if it is, what can you do about it?
Your employment contract is legally binding. When your employer breaks its terms, that is called breach of contract — and you have rights. Understanding them is the first step to taking back control.
In this guide, you will learn:
- What breach of employment contract actually means
- The most common ways employers breach contracts
- Your rights and the time limits that apply
- The options available to you
What Is Breach of Employment Contract?
A breach of contract happens when either you or your employer fails to honour the terms of your employment agreement.
Your employment contract can take three forms:
Written: The document you signed when you started your job. This is the clearest form of contract and the easiest to rely on in a dispute.
Verbal: Even without a written contract, verbal agreements count. If your manager promised you specific terms when hiring you, that constitutes a contract.
Implied: Some terms are implied by law or custom, even if they are not written down — for example, the duty of mutual trust and confidence between employer and employee.
You do not need a formal written contract to have employment contract rights. If you work for someone and they pay you, a contract exists.
Why this matters
Employment contracts are legally binding under the Employment Rights Act 1996. When your employer breaks that agreement, UK law gives you specific remedies.
Many employers rely on workers not knowing their rights. The sections below set out what those rights are.
Common Employer Breaches of Employment Contract
These are the breach types most frequently seen in employment disputes:
1. Not paying agreed wages or bonuses
What this can look like:
- Your salary falls short of what your contract states
- A contractual bonus is not paid
- Your commission structure is changed without your agreement
- Regular deductions appear on your payslip without explanation
Example: Your contract states £30,000 per year, but your payslips only add up to £28,000. That is a £2,000 breach.
2. Dismissal without proper notice
What this can look like:
- You are dismissed immediately with no notice period
- No payment in lieu of notice (PILON) is made
- You receive shorter notice than your contract requires
Example: Your contract requires three months' notice, but you are dismissed immediately with no notice pay.
If this has happened to you, you may have a claim for wrongful dismissal — one of the most common breach of contract claim types at tribunal.
3. Changing working hours without agreement
What this can look like:
- Hours reduced from full-time to part-time
- Shift patterns changed without your consent
- On-call requirements added to your role
Example: Your contract states 40 hours per week. Your employer cuts you to 25 hours without asking.
4. Changing your workplace location
What this can look like:
- Moved to a different office or site
- Required to commute significantly further
- Relocated to a different city
Example: You work in London. Your employer tells you to report to their Manchester office starting next month. Unless your contract contains a mobility clause, this may be a breach.
5. Removing contractual benefits
What this can look like:
- Company car taken away
- Private health insurance cancelled
- Pension contributions reduced below the contractual level
- Phone or laptop allowance stopped
6. Demotion or changing job duties
What this can look like:
- Job title downgraded without agreement
- Key responsibilities removed
- Reporting line changed fundamentally
- A materially different role imposed on you
7. Not following contractual disciplinary procedures
What this can look like:
- Skipping warning stages your contract requires
- Not allowing you to bring a companion to disciplinary meetings
- Failing to follow the investigation procedure set out in your contract
- Dismissal without following the process
According to ACAS, employers should follow the ACAS Code of Practice on Disciplinary and Grievance Procedures. Where an employer unreasonably fails to comply, a tribunal can adjust compensation by up to 25%.
What About Employee Breach of Contract?
This guide focuses on situations where your employer has breached the contract. Employee breach — where you, as the employee, are alleged to have broken the terms — is a separate legal situation covered in our guide to [employee breach of contract and what your employer can do].
The two are legally distinct and attract different remedies.
Your Rights Under UK Law
When your employer breaches your employment contract, UK law gives you specific rights:
You can claim compensation
Employment tribunals can award up to £25,000 for breach of contract claims under the Employment Tribunals Extension of Jurisdiction (England and Wales) Order 1994. Compensation is based on your actual financial losses — what you have lost because of the breach.
You do not need to be dismissed
Unlike unfair dismissal claims, you can bring a breach of contract claim while still employed. In practice, many workers find this difficult — but the right exists.
No minimum service period
There is no qualifying period for breach of contract claims. You can claim from your first day of employment if a breach occurs. This differs from unfair dismissal, which normally requires two years' service.
⏰ Time Limits: Act Within 3 Months Minus 1 Day
Under the Employment Tribunals Act 1996, you have three months minus one day from the date of the breach — or from your last day of employment if you have been dismissed — to bring a tribunal claim.
Tribunals rarely grant extensions, so always work to this deadline.
When the clock starts:
- The date the breach occurred, or
- Your last day of employment (if you were dismissed)
Examples:
- Dismissed without notice on 1 June → deadline: 31 August
- Contractual bonus unpaid on 1 April → deadline: 30 June
ACAS early conciliation
Before submitting a tribunal claim, you must contact ACAS to start the early conciliation process. This is a legal requirement. Early conciliation pauses your tribunal clock and typically extends your effective deadline by around one month. According to Ministry of Justice data, around 27% of breach of contract cases settle during this stage.
Contact ACAS at acas.org.uk/early-conciliation.
Employment Rights Act 2025 — does this change the time limit for breach of contract claims?
The Employment Rights Act 2025 proposes extending tribunal time limits from three to six months for most employment claims. However, breach of contract claims at tribunal derive from the Employment Tribunals Extension of Jurisdiction Order 1994 — a separate statutory instrument — and the current position is that breach of contract claims will remain subject to the three-month limit. You should check ACAS guidance and gov.uk for the latest position as secondary legislation is confirmed.
What You Can Claim
Compensation for breach of contract is based on your actual financial losses.
Types of loss you can claim:
- Unpaid wages or salary
- Notice pay (if dismissed without proper notice)
- Unpaid contractual bonuses
- Lost benefits (company car, health insurance, pension)
- Unpaid holiday pay
The £25,000 tribunal cap
Employment tribunal awards for breach of contract are capped at £25,000. If your losses exceed this figure, you may need to pursue the balance through the county court.
Typical awards vary significantly based on your salary level, the length of your notice period, the value of any lost benefits, and how quickly you find new work.
For an overview of how breach of contract cases typically resolve at tribunal — including success rates, timelines, and settlement data — see our [breach of contract tribunal data and outcomes guide].
What to Do Next
If your employer has breached your contract, several options are available:
1. Try informal resolution. Speak to your manager or HR. Genuine mistakes or minor breaches can sometimes be resolved quickly without formal action.
2. Raise a formal grievance. Put your complaint in writing and follow your employer's grievance procedure. Under the ACAS Code of Practice, this is usually the expected first step, and failure to follow it can affect any tribunal award.
3. Work under protest. Object in writing immediately. Stating that you are working "under protest" prevents your employer from arguing that you accepted the change.
4. Negotiate a settlement. Both sides can sometimes agree on compensation without going to tribunal. A significant proportion of breach of contract claims settle at the ACAS stage — see our [ACAS early conciliation guide] for how this works.
5. Make an employment tribunal claim. File through ACAS early conciliation first. If conciliation fails, you can submit an ET1 claim form. Cases typically take around 30 weeks from filing to resolution.
6. Resign and claim constructive dismissal. If the breach is fundamental and makes continued employment impossible, you may resign and bring both a constructive dismissal and a breach of contract claim. This route carries risk — it is worth understanding your position carefully before resigning. Consider the factors in our [constructive dismissal guide] before taking this step.
Breach of Contract, Unfair Dismissal, and Wrongful Dismissal: The Differences
Many workers confuse these three claim types. Here is how they differ:
| Factor | Breach of Contract | Unfair Dismissal |
|---|---|---|
| Can claim while still employed? | Yes | No — must be dismissed |
| Service requirement | None | Normally 2 years |
| Tribunal cap | £25,000 | No cap (statutory limits apply) |
| Time limit | 3 months minus 1 day | 3 months minus 1 day |
Wrongful dismissal is a specific type of breach of contract claim — it refers to being dismissed without your contractual notice (or PILON). See our [wrongful vs unfair dismissal guide] for a full comparison.
You can bring multiple claim types where they apply. On average, tribunal claimants file 2–3 claim types. This does not mean you should — but overlap is common, particularly where dismissal without notice is also alleged to be unfair.
Frequently Asked Questions
Can I claim breach of employment contract if I am still employed?
Yes. You do not need to be dismissed to bring a breach of contract claim at tribunal. However, many workers find it difficult to remain in a job while actively pursuing a claim against their employer. If the breach is ongoing and serious, you may also want to consider whether constructive dismissal applies.
Do I need a written contract to claim?
No. Verbal and implied contracts are legally binding. Evidence can include offer letters, emails confirming your terms, payslips showing agreed pay, the employee handbook, and witness statements from colleagues.
How long do I have to make a claim?
Three months minus one day from the date of the breach, or from your last day of employment if you were dismissed. You must contact ACAS to start early conciliation before this deadline — the clock pauses while conciliation runs.
How much compensation can I get?
Compensation is based on your actual financial losses: unpaid wages, notice pay, lost benefits, unpaid bonuses, holiday pay. Awards vary significantly depending on your salary, notice period, and the nature of the breach. The maximum at employment tribunal is £25,000.
Is the breach of contract time limit changing under the Employment Rights Act 2025?
Most tribunal time limits are expected to extend to six months under the Employment Rights Act 2025. However, breach of contract claims at tribunal derive from a separate statutory instrument — the Extension of Jurisdiction Order 1994 — and the current position is that the three-month limit is likely to remain for this claim type. Check ACAS guidance as secondary legislation is confirmed.
Do I need a solicitor?
You are not legally required to have one. Around 30% of tribunal claimants self-represent. Whether you need one depends on the complexity of your case, the value at stake, and the strength of your evidence. If you cannot afford a solicitor:
- If you are a union member, you may be entitled to free representation
- ACAS early conciliation is free and provides impartial support
- Citizens Advice and the Law Society's Find a Solicitor tool can signpost free or low-cost legal help
- Yerty is designed to help you understand your position and prepare your case — not a substitute for legal advice, but practical support for the steps involved
Does this guide apply in Northern Ireland?
No. This guide covers England, Wales, and Scotland. Northern Ireland has separate employment legislation. Contact the Labour Relations Agency (LRA) rather than ACAS.
Sources
- "Employment Contracts", ACAS (2024) — Employment contracts — Acas
- "ACAS Code of Practice on Disciplinary and Grievance Procedures", ACAS (2015) — Acas Code of Practice on disciplinary and grievance procedures
- "What early conciliation is", ACAS (2024) — Early conciliation — Acas
- "Breach of contract", ACAS — Breach of contract — Acas
- "Making a Claim to an Employment Tribunal", GOV.UK (2024) — Make a claim to an employment tribunal — GOV.UK
- Employment Rights Act 1996, Legislation.gov.uk — Employment Rights Act 1996 — legislation.gov.uk
- Employment Tribunals Extension of Jurisdiction (England and Wales) Order 1994, Legislation.gov.uk — Employment Tribunals Extension of Jurisdiction Order 1994 — legislation.gov.uk
- "Employment Tribunal Statistics", Ministry of Justice (2025) — Employment tribunal statistics — GOV.UK