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Constructive dismissal

Stephen SimpsonEditor's message: Under unfair dismissal laws, an employee is entitled to resign in response to a fundamental breach of the contract of employment by their employer. This means that, although the employer has not dismissed the employee, the termination of the employment contract is treated as a dismissal.

You should be alert to the common breaches of contractual terms, both express and implied, that can lead employees to resign and argue that you have constructively dismissed them. A common example of a fundamental breach of an express term is unilaterally cutting an employee's pay or hours without the contractual power to do so. A breach of the implied term of trust and confidence could occur if you fail to investigate a grievance properly or turn a blind eye to allegations of bullying and harassment.

The best way to minimise the risk of constructive dismissal claims against your organisation is to have procedures that prevent fundamental breaches from occurring in the first place. These include a process for varying employees' terms and conditions; a grievance procedure; and a dignity at work policy. Under these procedures, you should consult properly with employees on significant variations to their terms and conditions; follow a fair and timely procedure when an employee raises a grievance; and fully investigate allegations of bullying and harassment.

Stephen Simpson, principal employment law editor

New and updated

  • Date:
    19 May 2023
    Type:
    Employment law cases

    Constructive dismissal tribunal round-up: Express and implied breaches

    We look at three recent employment tribunal decisions where the unfair constructive dismissal claim was successful because of mistakes made by the employer that breached the employment contract expressly or impliedly.

  • Type:
    How to

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    Updated to reflect the maximum compensatory award for unfair dismissal, effective from 6 April 2023.

  • Date:
    1 December 2022
    Type:
    Employment law cases

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  • Date:
    29 September 2022
    Type:
    Employment law cases

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  • Date:
    26 August 2022
    Type:
    Employment law cases

    Age discrimination: Employment tribunal round-up

    We look at three employment tribunal cases in which employers were held to have discriminated against employees because their age was a factor in their dismissal.

  • Date:
    7 June 2022
    Type:
    Employment law cases

    Unfair constructive dismissal: Employment tribunal round-up

    We look at three recent employment tribunal decisions where the actions of the employer led to successful unfair constructive dismissal claims.

  • Date:
    6 May 2022
    Type:
    Podcasts and webinars

    Webinar: Avoiding unfair constructive dismissal claims

    Max Winthrop guides you through everything you need to know about constructive dismissals and how they can be defended.

  • Date:
    22 April 2022
    Type:
    Employment law cases

    Mishandled flexible working requests: Case law round-up

    We look at three successful employment tribunal claims brought over the mishandling of flexible working requests. We also examine two Employment Appeal Tribunal decisions on getting agreement from the employee to extend the three-month decision period and the requirement for a single mother to be available to work late shifts.

  • Date:
    16 November 2021
    Type:
    Podcasts and webinars

    Podcast: COVID-19 employment tribunal decisions

    How are employment tribunals approaching claims arising from the coronavirus pandemic? We explore the most important decisions handed down so far this year and discuss their practical implications for HR.

  • Date:
    19 February 2021
    Type:
    Employment law cases

    Coronavirus: Constructive dismissal after remote working request denied

    In An Operations Coordinator v A Facilities Management Service Provider, the Workplace Relations Commission in Ireland found that a worker was constructively dismissed when she resigned after she raised concerns about safe working and her employer rejected her request to work remotely during the coronavirus pandemic.