Constructive Dismissal - Should I stay or should I go?
I think we can all agree it has been a tough few years for employers and employees alike! With the rapid state of change we have all experienced at work due to the pandemic – furlough, redundancies, returns to work, variations to sick pay, health and safety issues, hybrid working, mental health issues, new policies and procedures…etc it is inevitable that tensions in the workplace have increased. Grievances are at an all-time high and we have seen a dramatic increase in the number of queries from employees seeking advice regarding potential constructive dismissal claims.
So, what is ‘constructive dismissal’?
Constructive dismissal occurs when an employee feels that they have no alternative but to resign because of conduct by their employer that amounts to a ‘repudiatory breach’ of the employment contract.
A ‘repudiatory breach’ of the employment contract is a severe breach of contract that essentially makes it untenable to continue with the employment relationship.
What amounts to a ‘repudiatory breach’ of contract?
A repudiatory breach of contract can take various forms:-
- It does not need to be a breach of an express term of the written contract of employment, but could be a breach of the implied term of trust and confidence between employer and employe;
- It can be a one-off act or a serious of smaller breaches resulting in a ‘final straw’ incident;
- It can be an actual breach or an anticipated breach.
Examples may include:-
- Not being paid the right amount without a good reason;
- Being bullied or discriminated against;
- Unreasonable changes to working patterns or duties without agreement;
- Unreasonable refusal of flexible working requests;
- Failure to address grievances;
- Poor handling of disciplinary matters;
- Excessive workload;
- Intolerable working environment.
What is the difference between constructive dismissal and unfair dismissal?
Constructive dismissal occurs when an employee resigns as a result of their employer’s conduct.
Unfair dismissal occurs when the employer has dismissed the employee and either does not have a fair reason for doing or so, or has not followed a fair process.
Am I eligible to pursue a constructive dismissal claim?
You must be an employee with over two years’ continuous service to be able to pursue a constructive dismissal claim.
Are there any time limits?
You must make the claim within 3 months less one day of the date your employment ended. After this time, you will not be able to pursue a constructive dismissal claim.
You must tell ACAS first if you wish to pursue a constructive dismissal claim and you will have the option to engage in ACAS Early Conciliation to try and resolve the issue with your employer before the matter goes to the Employment Tribunal. If you do, this will extend the deadline.
Is it easy to win a constructive dismissal claim at an Employment Tribunal?
Constructive dismissal claims are notoriously difficult to win at Employment Tribunals. As such, we would always recommend that employees seek sound advice from an employment lawyer before proceeding.
How much compensation could I be awarded if I win?
Compensation for constructive dismissal is broken down into two parts:-
- Basic Award – which is calculated in the same way as an individual’s statutory redundancy entitlement (based on age, salary and length of service).
- Compensatory Award – this is based on the employee’s net loss of earnings and benefits from the date they resigned up to the date they secure, or are expected to secure alternative employment. It is capped at a maximum of £93,878 or 52 weeks’ gross pay (whichever is the lowest).
Employees are required to take steps to actively mitigate their losses by looking for a new job and the Employment Tribunal will expect to see evidence of this.
What to do if you think you have a constructive dismissal claim
Resigning from your job is not something to take lightly, especially when constructive dismissal claims can be so difficult to win.
You should:-
- Seek early advice from an employment lawyer;
- Take steps to try and resolve the matter internally first – ie. by raising a grievance.
- Consider trying to reach a settlement with your employer before you resign;
- Ensure that any resignation letter makes it clear that you are resigning as a result of your employer’s conduct.
For advice on constructive dismissal, please contact us at info@barnarwebb.co.uk or 01442 531021.
The contents of this article are for the purposes of general awareness only. They do not purport to constitute legal or professional advice. The law may have changed since this article was published. Readers should not act on the basis of the information included and should take appropriate professional advice upon their own particular circumstances.
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