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Transfer of undertakings: Broader test of "constructive dismissal" in transfers cases

This report relates to 1 case(s)

The concept of "constructive dismissal" in s.95(1)(c) of the Employment Rights Act 1996 ("the ERA") is sufficiently wide to bear a construction that does not require the employer's actions complained of to constitute a breach of contract, holds the EAT in Rossiter v Pendragon plc [2001] IRLR 256. In the context of the transfer of an undertaking, it can thus be construed so as to enable anyone who suffers a substantial change in his or her working conditions to his or her detriment to resign and claim constructive dismissal under the ERA. The fact that, in a purely domestic context, s.95(1)(c) is given a different construction does not preclude that provision being given a wider purposive construction having regard to the duty to give effect to the EC Business Transfers Directive where the context so requires.