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Constructive Dismissal

When an employee is treated poorly or unfairly by their employer but is not formally dismissed, there may be grounds for a claim of constructive dismissal.

This situation arises when the working environment or the behaviour of the employer becomes so unreasonable that the employee feels they have no choice but to resign. Poor treatment can take many forms, and common examples include bullying, harassment, discrimination, unfair disciplinary action, undermining someone’s role, or failing to pay salary. Sudden changes to duties, aggressive management styles, or ignoring grievances can also contribute to a potential constructive dismissal claim.

For a claim to succeed, the employer must have committed a fundamental and repudiatory breach of the employment contract. This could be a breach of an express term, such as pay or working hours, or a breach of the implied duty of trust and confidence. Crucially, the employee must resign in response to that breach, and usually without undue delay. If too much time passes, an employer may argue that the conduct was accepted or waived. Understanding this timing is often one of the most challenging aspects of a constructive dismissal claim.

Employers need to be aware that allowing certain behaviours to continue in the workplace, or failing to deal with concerns raised by employees, can significantly increase the risk of claims. Complaints and grievances should be handled seriously, investigated thoroughly, and addressed within a reasonable timeframe. A proactive approach helps to maintain trust and reduces the likelihood of disputes escalating.

For employees, constructive dismissal claims carry legal and practical risks, and the outcome often depends on the specific facts of the case. It is important to take specialist advice before resigning, as resignation can bring financial consequences and may affect any future claim. Assessing whether an employer’s conduct meets the legal threshold for a breach, whether resignation is the right option, and what evidence is required are all areas where expert guidance is essential.

We use our years of experience to guide both businesses and individuals through workplace disputes. Whether seeking an agreed resolution or pursuing litigation, we work strategically to protect our clients’ interests and achieve the best possible outcome.

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