CONSTRUCTIVE DISMISSAL

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This fact sheet will give you some basic information about the laws protecting you from constructive dismissal. .

Please be aware that this is not legal advice and if you are concerned about any of the issues mentioned you should speak to a lawyer.

You can contact Russell Jones & Walker's solicitors at enquiries@rjw.co.uk or call our freephone number 0800 916 9065.

What is constructive dismissal?

Most of us know that "dismissal" is when your employer terminates your contract. But it is also a "dismissal" if you resign because your employer has breached your contract. This is called "constructive dismissal" and you can make a claim that it is unfair.

How would I show constructive dismissal?

You would have to show your employer had "fundamentally breached your contract" or shown they did not intend to be bound by the contract any more. You would also have to show you resigned because of your employer's behaviour and that you did not act too hastily or delay too long.

What sort of behaviour would count as a "fundamental breach of contract"?

It is difficult to be specific, the list is virtually endless, but some of the more common things include:

  • Reducing your salary or removing other benefits, like a company car
  • Significantly changing your duties, for example, removing most of your sales activities if you are a sales manager
  • Suspending you where there is no contractual right or justification for doing so
  • Failing to provide a safe working environment
  • Failing to provide a reasonable opportunity to get redress for a grievance, or failure to do so promptly
  • Destroying the trust and confidence between you and your employer, for example, by using obscene language, saying you are bad at your job when this is not true, giving you an unjustified warning, or disciplining you in front of subordinates
  • Imposing a punishment which is grossly out of proportion to an offence you have committed.

How do I resign in response to this sort of behaviour?

You must clearly inform your employer as soon as possible that you believe they have breached your contract. You must also resign soon after the breach happens. If you continue working for any length of time without saying anything, it means you have accepted the breach and you will lose your right to complain.

Equally, you must be careful not to pre-empt the situation and leave before any breach has happened. Your resignation must be in response to your employer breaching your contract.

You can also claim that your employer's past behaviour made the final breach sufficient reason to resign (the "last straw" argument). This is true even if the last act which makes you resign is not itself a breach of contract.

You should clearly inform your employer that you are claiming constructive dismissal. You don't have to say why, but it is helpful if you do, otherwise your employer can claim they don't know why you left.

Should I raise a grievance with my employer as well?

It is important to raise your complaints as a written grievance with your employer. This ensures you can take your case to an Employment Tribunal.

Your employer should invite you to a meeting to discuss your grievance and you should attend this meeting if at all possible. Afterwards, your employer must tell you his decision and notify you of your right to appeal. If you do appeal, there will be another meeting which you should also try to attend. Your employer will then tell you their final decision.

You can agree in writing to a modified procedure if you are no longer employed. In this situation, you don't need to have a meeting and your employer will respond in writing. There is no need for any further action and you have no right of appeal.

You must also make sure you follow the proper grievance procedure otherwise any compensation you get from the Tribunal will be reduced. If your employer doesn't follow the procedure properly, your compensation may be increased.

What happens after I've resigned?

After raising your written grievance you must wait 28 days before taking your claim to the Employment Tribunal. Normally you must do this within three months less one day of the date your contract was terminated.

There are three stages for a Tribunal to find a case of constructive dismissal. Firstly it has to decide you were dismissed. Then it must decide whether the reason for this was fair and sufficient in the circumstances.

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