Constructive Dismissal Guide

Constructive dismissal occurs when an employee resigns because their employer has severely breached the employment contract which forces their hand into resigning. It is also known as constructive unfair dismissal and is recognised under the UK law in the Employment Rights Act 1996. When an employer’s conduct constitutes a fundamental breach of contract and leaves an employee no choice but to resign, it is considered to be a form of unfair dismissal. It is treated as unfair dismissal by the law however unlike standard unfair dismissal, the employer is not terminating the contract however, the breach caused by the employer causes the employee to resign.

Common examples of unfair dismissal

Constructive dismissal may arise from a single serious incident or from a series of actions that undermine the trust and confidence required in an employment relationship. A common example is where an employer fails to deal properly with persistent bullying, harassment or discrimination, leaving the employee feeling they have no realistic option but to resign. Harassment is unlawful where it is linked to a protected characteristic under the Equality Act 2010, such as age, disability, race, religion or belief. Bullying, by contrast, is not usually a standalone legal claim, but it can still support a constructive dismissal claim if the employer’s failure to address it amounts to a serious breach of contract. Similarly, there is a sever breach of trust of confidence which can be a byproduct of unfair treatment by the employer. Constructive dismissal can also arise from significant changes to employment terms such as reducing the pay of an employee or altering their work hours without consent.

Combatting unfair dismissal

If an employee feels that they have faced constructive dismissal, is would be recommended to keep detailed accounts of incidents which could contribute to their claim, including dates, times, witnesses of the situations and descriptions of the events that have occurred. If possible, the employee should then attempt to raise these concerns with their employer or the HR department in an attempt to resolve the issues at hand before they escalate. A formal grievance should be considered if these discussions provide no help. Before the employee resigns, they should seek legal advice with a consultant who specialises in employment law as this can provide the employee with a deeper understanding of their situation. If all of these attempts to rectify the situation has no success, the employee should resign in a manner where their reasons for resignation are proper stated. This way, their claim for constructive dismissal can be strengthened in the case that they decide to pursue legal action. Upon doing this, the employee should become familiar with their rights regarding constructive dismissal as they may be able to pursue legal action if they are able to prove that their employer’s conduct was the reason that they resigned. 

Legal considerations

In  cases where legal action is a possibility, an employee must be aware of any possible time limits that are present when they are to make a claim for constructive dismissal. It is common for there to be limited time periods where a claim can be filed after resignation. It must also be noted when thinking about constructive dismissal that if an employee has reached a settlement agreement with their employer, their ability to pursue a constructive dismissal claim may be affected.

If you require expert legal advice or support with any aspect of your matter, our experienced team of solicitors at Aston Bond are here to help. We are committed to providing clear, practical and tailored legal solutions to help you move forward with confidence. Contact our team today on 01753 486 777 or email info@astonbond.co.uk to discuss how we can assist you.