Constructive Dismissal: Everything You Need to Know
11 minute read
Date Published - August 26th 2024
Date Updated - September 1st 2024
11 minute read
Date Published - August 26th 2024
Date Updated - September 1st 2024
Constructive dismissal might not be a familiar term, but it's one that’s vital for both employees and employers to understand. It occurs when an employee feels forced to resign due to the way they're being treated at work. It's more than just being unhappy; it's about an employer breaking the terms of an employment contract, leaving the employee with no reasonable option but to quit.
This guide aims to clarify what constructive dismissal is, how it happens, and what steps to take if you find yourself in such a situation. We’ll explore real-life examples, explain how to prove constructive dismissal and discuss the potential consequences for employers. By the end, you'll have a clearer understanding of this complex area of employment law, whether you're considering a claim or seeking to avoid one.
Constructive dismissal happens when an employer's actions leave an employee feeling they have no choice but to resign. The UK Government’s ‘Working, Jobs and Pensions’ portal states:
“The reasons you leave your job must be serious, for example, they:
Your employer’s breach of contract may be one serious incident or a series of incidents that are serious when taken together.” - GOV.UK - Dismissal: Your Rights
It's difficult to establish the exact figures for constructive dismissal claims in the UK as many employment tribunal cases are settled privately through Settlement Agreements rather than the courts.
Constructive dismissal occurs when an employee resigns due to a serious breach of contract by the employer. For a claim to be successful, UK law requires the breach to be significant - such as a notable pay cut without reason or a major change in job duties. Timing is crucial; if the employee delays their resignation after the breach, it could weaken their claim.
While both terms involve job termination, they have clear differences. Unfair dismissal is when an employer terminates an employee without a fair reason or proper procedure. Constructive dismissal is when an employee feels compelled to resign due to their employer's actions. The key difference lies in who initiates the resignation - constructive dismissal is driven by the employee’s decision, based on the employer’s breach of contract.
Constructive dismissal occurs when an employer’s conduct forces an employee to resign. Unlike unfair dismissal, which focuses on the employee’s actions, constructive dismissal centres on the employer’s behaviour. For a claim to be valid, the breach must be serious, leading the employee to resign with immediate effect. Reasons for constructive dismissal might include:
These examples highlight scenarios where constructive dismissal might apply. Employees who resign due to a fundamental breach should clearly state this at the time of resignation.
Scenarios that could lead to constructive dismissal include significant pay cuts, demotions without cause, or creating a hostile work environment. For example, if your employer suddenly reduces your salary by 30% without any explanation, or if you’re moved to a less senior position for no reason, you might feel forced to resign, potentially leading to a constructive dismissal claim.
In the UK, you generally need two years of continuous service to claim constructive dismissal. However, there are key exceptions where you can still pursue a claim with less than two years of employment. These exceptions include:
Some situations are classified as "automatically unfair," which means they bypass the usual two-year requirement for claiming constructive dismissal. These include:
In the UK, even if you have less than two years of service, you can still claim constructive dismissal if it involves discrimination under the Equality Act 2010. This Act protects against unfair treatment based on "protected characteristics," which include:
If you were forced to resign because of discrimination related to any of these characteristics, you can make a claim without needing two years of service. For example, unfair treatment due to your race, disability, or sexual orientation could form the basis of a constructive dismissal claim.
If you believe you have been forced to resign due to any of the reasons above, it’s important to seek advice as soon as possible. GloverPriest’s expert Personal Employment Law Solicitors can help you understand your rights and guide you through the process of making a constructive dismissal claim. Contact us today to discuss your case and explore your options.
When writing a resignation letter due to constructive dismissal, it's important to cover several critical aspects:
Address your letter to the correct person, typically your immediate supervisor, and consider copying in HR to ensure it’s seen promptly. Double-check the date and ensure your details are clear. You should also keep a copy for your own records, as it will be crucial evidence if you pursue a claim.
Maintain a professional, factual tone. Clearly state the reasons for your resignation, avoiding emotional language. It’s important to be concise but thorough, focusing on the breach of contract that has led to your resignation.
If resigning immediately, make this clear. However, if you can manage to work out your notice period, ensure it aligns with your employment contract. If there has been a delay in your resignation, explain the reasons, such as waiting for a grievance result, and clarify that this did not indicate acceptance of the breach.
If your resignation stems from a series of incidents, refer to previous correspondence, like a grievance letter, rather than detailing everything in the resignation letter. If it’s due to a single event, summarise it briefly. Make sure you use the term “constructive dismissal” and mention the final incident that prompted your resignation.
Use your letter to address any outstanding practical issues. This could include requesting owed salary, expenses, or benefits, arranging to collect personal belongings, or returning company property. Including these details can save you from having to send additional communications later.
If you’re considering resigning due to your employer’s treatment, it’s crucial to seek specialist advice before submitting your resignation letter.
At GloverPriest, our specialist Employment Law solicitors can provide you with the guidance you need to ensure your resignation is handled correctly, protecting your rights and strengthening your position for a constructive dismissal claim. Contact us today to discuss your situation and explore your legal options
Proving constructive dismissal can be challenging, but with the right approach and expert support, it's possible.
Start by gathering solid evidence showing that your employer’s actions breached your employment contract. This might include emails, performance reviews, or witness statements.
Next, demonstrate that these actions directly led to your resignation. Timing matters - if you wait too long after the breach before resigning, it could weaken your case.
To build a strong case, it’s also important that you seek legal advice as early as possible. An experienced solicitor can guide you through the process, ensuring you’re taking the right steps.
The key to proving constructive dismissal is gathering strong evidence. This could be emails showing changes in your job role, performance reviews reflecting a sudden drop in support, or records of meetings that contribute to your claim. All this evidence can help you build a solid case if you decide to take your employer to a tribunal.
Timing is critical when making a claim. You typically have three months (minus one day) from the date of resignation to file with an employment tribunal. This process involves submitting a detailed account of the events that led to your resignation, supported by evidence. Because the burden of proof lies with you, acting quickly is crucial. Legal professionals can help navigate the process and ensure you meet all deadlines.
If you believe you've been constructively dismissed, it's essential to act quickly and gather evidence. Employees should document all relevant incidents and seek legal advice immediately, as claims must be filed within three months of resignation.
If you believe you’ve been constructively dismissed, seek legal advice as soon as possible. A solicitor can help you determine if you have a valid claim and guide you through the process of gathering evidence. Keep detailed records of all incidents that contributed to your decision to resign. The sooner you act, the stronger your case will be, and you’ll be better positioned to protect your rights.
Seeking legal advice is crucial if you think you’ve been constructively dismissed. A specialist solicitor can assess your situation, help you gather the necessary evidence, and represent you in any legal proceedings. They can also advise you on the potential outcomes of your case and the compensation you might be entitled to. Getting legal advice early on can make all the difference in ensuring your claim is handled effectively and fairly.
In a notable case, Kevin Hope, a lecturer at City and Islington College, was awarded over £44,000 after resigning due to repeated flooding in his workspace and unresolved disputes with a colleague. The tribunal found that both the unsafe working conditions and the failure to address grievances were valid grounds for constructive dismissal, emphasising the employer's responsibility to maintain a safe work environment.
A significant case illustrating the consequences of failing to address workplace issues involved a social worker who was awarded £154,000 after being unfairly dismissed by her council employer. The tribunal found that the social worker had been subjected to bullying, and when she raised concerns, the council did not handle the situation appropriately. This resulted in a successful unfair dismissal claim and substantial compensation. This case highlights the serious financial and reputational risks employers face if they fail to manage employee grievances effectively.
Employers face serious consequences if a constructive dismissal claim is upheld. Compensation can include lost wages, and employers might also be required to pay additional damages for breach of contract. In some cases, compensation can reach tens of thousands of pounds, especially if the employee demonstrates significant financial or emotional harm.
If an employer is found liable for constructive dismissal, the repercussions can be significant. This could include compensation for lost earnings and other damages. A constructive dismissal case can also harm the employer’s reputation, making it harder to hire and retain quality employees. Employers should be aware of these risks and take steps to avoid situations that could lead to such claims.
Preventing constructive dismissal is not only cost-effective but also crucial for maintaining a positive workplace culture and protecting your company's reputation. Here’s how employers can reduce the risk of constructive dismissal claims:
Establish a transparent workplace where employees feel comfortable voicing concerns early. When transparency is valued, employees are more likely to report issues before they escalate to resignation.
Make sure employees know how and where to report concerns. Implement accessible pathways, such as dedicated HR contacts or anonymous reporting systems, to ensure issues are addressed promptly.
Equip managers with the skills to address complaints constructively. Training in conflict resolution and communication is essential for defusing tensions and resolving issues before they lead to resignations.
Develop and communicate clear policies on how reports of unfair treatment will be handled. Ensure employees know the process for escalating concerns, the steps involved in investigations, and the consequences for policy breaches.
Use tools like Employee Net Promoter Score (eNPS) surveys to gauge staff satisfaction and identify potential issues early. Regular feedback helps to address concerns before they result in constructive dismissal claims.
Creating a fair and open workplace culture is the first step to avoiding constructive dismissal claims. Our expert Business Employment Law solicitors at GloverPriest are well-versed in advising businesses on compliance, policy development, and training to prevent workplace disputes. Contact us today to learn more about how we can help safeguard your business from constructive dismissal claims.
HM Courts & Tribunals Service has published their Employment Tribunal Forms and Guidance information on the UK Government’s online portal, which includes access to all relevant submission forms and guidance documents, whether you’re making your own claim or responding to an employment tribunal claim.
Before submitting an employment tribunal claim, you should always discuss your case with an experienced solicitor.
Understanding constructive dismissal is vital for both employees and employers. Employees need to know when their rights are being violated, especially under circumstances where they might feel forced to resign due to unfair treatment or discrimination. For employers, maintaining fair and transparent practices is essential to prevent legal disputes and foster a positive work environment.
If you’ve resigned or are considering resignation due to mistreatment, GloverPriest’s specialist Personal Employment Law Solicitors can provide the specialist advice you need. Contact us to discuss your situation and explore your legal options.
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