What is constructive dismissal?

For the circumstances to amount to a constructive dismissal, certain tests must be met:

• The claimant must be an employee (not worker or contractor) 
• The employer must have breached a fundamental term of the contract  
• The employee must resign in response to that breach (with or without notice) 
• The employee cannot not delay too long before resigning (otherwise they might be regarded as accepting the breach). 

It may not always be one decisive act of the employer that compels the employee to resign. A series of small breaches which, taken cumulatively, amount to a breach of the implied term of trust and confidence may also amount to constructive dismissal, known as the “last straw” doctrine. In Craig -v- Abellio Ltd (2022), the employee had a dispute with the bus company Abellio over sick and holiday pay. He was subsequently awarded over £6,000 in backpay, which was not paid on time. Mr Craig then resigned and was found to have been constructively dismissed, with the failure to make payment on time being one of a string of mistakes made by his employer. 

Such cases highlight the need for employers to treat grievances with appropriate seriousness and to have regard for express and implied contract terms, especially where changes are to be introduced. 

If you need advice on constructive dismissals then contact Kumsal Kaleli and the team today.