Chat to Caira about your dismissal. She answers questions, reviews contracts, and drafts statements in seconds: https://caira.unwildered.co.uk

Introduction: Why the Stakes Are So High for Top Earners

For investment bankers, law firm partners, tech executives, and private equity or asset management professionals, dismissal is rarely just a personal setback—it’s a pivotal financial event. In these sectors, contracts are often complex, with long notice periods, deferred bonuses, profit shares, equity awards, or carried interest arrangements that can dwarf base salary. The difference between “unfair” and “wrongful” dismissal is not just legal jargon; it’s the difference between walking away with a statutory cap of £118,223 or fighting for a payout that can easily exceed £250,000, £500,000, or even £2 million.

The Employment Law Tribunal is not where the real money is won for high earners. If you’re a law firm partner with a disputed profit share, a CTO with unvested LTIPs, a banker with a multi-year bonus, or a private equity director with carried interest at stake, only the High Court can award what your contract truly promises.

Why does this matter?

• In 2023, the average High Court wrongful dismissal claim for FTSE 250 executives was £420,000.

• The largest reported settlement in 2024 exceeded £3.1 million, including lost LTIPs and deferred compensation.

• Legal costs are substantial, and the evidence required is sector-specific and detailed.

This article explains what most senior professionals don’t know about wrongful dismissal, the key contentious points in each sector, and the evidence that wins or loses six- and seven-figure claims. Throughout, you’ll find examples and practical steps tailored to the realities of investment banking, law, technology, and asset management.

What Most Senior Professionals Don’t Know (But Should)

Many high-value professionals are surprised by how quickly the financial landscape shifts after dismissal. The most common misconceptions can cost hundreds of thousands—or even millions—if not addressed early.

• The Tribunal Cap Is Irrelevant:
  The statutory cap (£115,115) only applies to unfair dismissal. If your contract entitles you to 12 months’ notice, a £200,000 bonus, £300,000 in share options, or a share of partnership profits or carried interest, your claim could be worth £500,000+—but only in the High Court.
  Example: A law firm partner with a disputed profit share or a private equity director with carried interest at stake must quantify these sums as part of their claim.

  
  

• Gross Misconduct Is “All or Nothing”:
  If your employer alleges gross misconduct, you lose everything—notice pay, bonus, shares, profit share, or carried interest. The High Court doesn’t care if the investigation was “reasonable”; it only cares if you actually did what you’re accused of.
  Example: A CTO accused of “serious breach of trust” lost unvested LTIPs, but the court restored them after finding no actual breach.

  
  

• Mitigation Is Make-or-Break:
  You must prove you tried to find a new job. A weak mitigation log can slash your damages by 50% or more. Courts expect a detailed, timestamped record of every job search activity, including approaches to headhunters, law firm recruiters, or VC/PE networks.

  
  

• Bonus, Equity, and Profit Battles Are Complex:
  Many professionals don’t realise that being “under notice” on a bonus or vesting date can mean losing out on six- or seven-figure sums. Employers sometimes time dismissals to avoid paying bonuses, profit shares, or triggering vesting.
  Example: A banker dismissed just before bonus day, or a tech executive let go before an LTIP vesting event, may have a claim for the lost sums if they can show the dismissal was engineered for that purpose.

Key Contentious Points

1. “Cause” vs. Contract: The Gross Misconduct Battle

Employers often allege gross misconduct to avoid paying notice, bonuses, profit share, or equity. The High Court will scrutinise:

• Was there a genuine repudiatory breach?

• Did the professional actually commit the alleged act?

• Was the process fair, or was the dismissal engineered to save costs or avoid vesting?

Sector Example:
A law firm partner accused of breaching partnership duties, a banker accused of regulatory misconduct, or a CTO accused of data misuse—all face “all or nothing” outcomes.

Key Evidence:

• Internal emails, board or partnership minutes.

• Witness statements from colleagues or fellow partners.

• The employment or partnership agreement and disciplinary policy.

2. The Bonus, Equity, and Profit Share Battle

Professionals often lose bonuses, profit share, or equity if not “employed and not under notice” on the payment or vesting date. The fight is over:

• Would the bonus, profit share, or equity have been paid but for the wrongful dismissal?

• Forensic accounting is key—historical bonus data, LTIP schedules, partnership profit allocations, and carried interest calculations can make or break the claim.

Sector Example:
A private equity director’s carried interest, a law firm partner’s profit share, or a CTO’s unvested options are all at risk if the timing of dismissal is manipulated.

Key Evidence:

• Bonus plan documents, partnership deeds, carried interest agreements.

• Historical payments and vesting schedules.

• Emails showing the timing and rationale for dismissal.

3. Mitigation of Loss

You must show you made reasonable efforts to find new work. Courts expect:

• A detailed log of every job application, headhunter call, recruiter approach, and interview.

• Evidence of salary offers, partnership invitations, or equity packages offered and rejected.

• Proof that you didn’t “sit on the beach” waiting for a payout.

Sector Example:
A senior associate moving between law firms, a banker seeking a new regulated role, or a tech executive networking with VCs should keep all correspondence and offers.

Key Evidence:

• Mitigation logs, recruiter emails, interview confirmations, rejection letters.

Evidence That Wins (The “Product” Angle)

Winning a high-value wrongful dismissal claim is all about the evidence. The best-prepared professionals have:

• Forensic Accounting:
  Detailed spreadsheets showing lost salary, bonuses, LTIPs, profit share, or carried interest. Expert reports to quantify loss, especially for complex compensation structures.

  
  

• Mitigation Logs:
  Timestamped records of every job search activity, including approaches to specialist recruiters, law firm headhunters, or VC/PE networks.

  
  

• The “Smoking Gun” Email:
  Internal emails or board/partnership minutes showing the dismissal was engineered to save costs, avoid bonus or profit share payments, or prevent vesting.

  
  

• Contractual Documents:
  The full employment contract, partnership deed, equity award letter, or carried interest agreement, including all amendments and side letters.

Actionable Steps: What to Do in the First 7 Days

If you’ve just been dismissed, the first week is critical. Here’s what you should do:

• Preserve All Evidence:
  Save emails, contracts, bonus plans, partnership agreements, equity award letters, and any correspondence about your dismissal.

  
  

• Start Your Mitigation Log:
  Record every job search activity from day one, including approaches to recruiters, law firm partners, or VC/PE contacts.

  
  

• Request Written Reasons:
  Ask your employer for a written explanation of the dismissal. This can be vital if the reason changes later.

  
  

• Calculate Your Losses:
  List salary, bonus, shares, profit share, carried interest, benefits, and pension contributions. Use historical data to estimate what you would have earned.

  
  

• Consider Settlement:
  Most cases settle—know your numbers and be ready to negotiate. Don’t rush to accept the first offer; understand your leverage.

  
  

• Seek References:
  Request a reference before things get adversarial. A positive reference can help with mitigation and future job searches.

Final Thoughts: Why Preparation Pays for Senior Professionals

High-value wrongful dismissal claims are won or lost on preparation and evidence. The professionals who succeed—whether in banking, law, tech, or asset management—are those who:

• Act quickly to preserve all relevant evidence, including partnership deeds, equity award letters, and carried interest statements.

• Build a meticulous mitigation log, showing every approach to recruiters, law firm partners, or VC/PE contacts.

• Understand the true value of their claim, including bonuses, profit share, equity, and carried interest—not just base salary.

• Are ready to negotiate but prepared to fight if necessary, with sector-specific evidence at their fingertips.

The financial stakes are enormous, and the right strategy can make all the difference—especially when deferred compensation, profit share, or equity is on the line.

Sector-Specific Actionable Steps

• Bankers: Preserve all bonus plan documents, deferred compensation statements, and regulatory correspondence.

• Law Firm Partners/Senior Associates: Save partnership agreements, profit share calculations, and any side letters or amendments.

• Tech Executives: Keep LTIP schedules, equity award letters, and emails about vesting or performance triggers.

• Private Equity/Asset Management Professionals: Gather carried interest agreements, fund documentation, and historical allocation statements.

Without Prejudice Conversation (Acas & Employment Law) is a crucial step before or after Acas Early Conciliation—see our guide for must-know negotiation tips.

Disclaimer: This content is for general information only and does not constitute legal, financial, or tax advice. Outcomes may vary depending on your individual circumstances.