Constructive dismissal

It needs more than an unhappy resignation

Constructive dismissal arises when an employer commits a fundamental breach of contract, the employee resigns because of that breach and they have not affirmed the contract by accepting the conduct. One serious act or a final act in a damaging course of conduct may qualify.

Examples can include non-payment, an unjustified demotion, a serious unilateral change or a fundamental breakdown of trust and confidence. The Acas constructive-dismissal guidance stresses that these claims are difficult and that the employee should usually seek advice before resigning.

Treat the warning signs as a live problem

A grievance, objection to a contract change, complaint of bullying or statement that someone feels forced out needs a prompt factual response. Identify the alleged breach, preserve evidence and consider whether an immediate correction or temporary protection is needed.

Do not pressure the employee to resign, draft their resignation or describe an employer-led proposal as their choice. If they do resign, acknowledge the words and dates accurately without demanding that they withdraw the allegation.

Separate dismissal from unfairness

Constructive dismissal describes how the employment ended. A constructive unfair-dismissal claim must also satisfy the relevant statutory tests, including status and any applicable qualifying period or exception. A breach-of-contract claim follows a different route.

Record the contract terms, alleged act, response, grievance, resignation and effective date. In Great Britain, Acas notification and strict tribunal time limits may follow. Northern Ireland uses the LRA and Industrial Tribunal route, with different qualification rules.