Constructive dismissal occurs when an employee resigns due to their employer's behavior, which has made the working environment intolerable. This is not a voluntary resignation; rather, it is forced by the employer's conduct. In such cases, the employee may claim constructive dismissal, arguing that their employer's actions breached the contract of employment.
Constructive dismissal happens when an employee feels they have no choice but to resign due to their employer's unreasonable or unfair behavior. Rather than an employer directly firing the employee, constructive dismissal involves situations where working conditions become so intolerable that resigning becomes the only reasonable option.
Example Situations That Can Lead to Constructive Dismissal:
Drastic Changes to Job Role or Responsibilities
Imagine your job description suddenly changes without consultation. You might be assigned completely new responsibilities or transferred to another department. If these changes are significant, it can feel like your role has been transformed without your consent.
Unaddressed Workplace Harassment or Bullying
Suppose you report harassment or bullying by a colleague, but your employer fails to address it, creating a hostile work environment. This failure to act can make the workplace feel unsafe or unwelcoming.
Breaches of Contract
Your employer might fail to meet contractual obligations, like consistently delaying payment or withholding agreed bonuses. When breaches of contract occur regularly, you may feel forced to leave due to financial instability or lack of trust in your employer.
Excessive or Unreasonable Demands
Setting unrealistic performance targets or overloading you with work can also constitute constructive dismissal. If you’re given an excessive workload that’s difficult to manage and impacts your health, this might be grounds for a claim.
Discrimination or Unfair Treatment
Employers are legally required to treat all employees fairly, irrespective of gender, race, disability, age, or other protected characteristics. If your employer discriminates against you, this may lead to a constructive dismissal claim.
Constructive dismissal claims require strong evidence, as tribunals usually expect employees to demonstrate that the employer’s actions were severe enough to justify resignation.
Both constructive and unfair dismissal involve wrongful treatment, but they occur under different circumstances:
Constructive Dismissal: You are forced to resign due to extreme behavior from your employer.
Unfair Dismissal: The employer dismisses you directly, but without just cause or following due process.
Here are common scenarios that may result in constructive dismissal claims:
Unsafe Work Environment: If your workplace fails to meet safety standards, or your complaints about hazards are ignored, you may be within your rights to resign.
Reduction in Wages or Benefits: Significant cuts to your wages, bonuses, or other benefits without consultation or justification can be grounds for constructive dismissal.
Unilateral Change to Work Conditions: Changing your work hours, job location, or job role without your consent can force you to resign.
Workplace Hostility: An employer tolerating a hostile environment, such as bullying, harassment, or public humiliation, can create an intolerable situation, compelling resignation.
Constructive dismissal cases often hinge on evidence, as you’ll need to prove that your employer’s actions were severe enough to justify leaving. Here’s the type of evidence that strengthens a case:
Documented Communications: Save emails, messages, or documents related to the mistreatment, as well as any grievances filed. These records provide a clear trail of your employer’s behavior.
Witness Testimonies: Statements from colleagues who witnessed incidents of mistreatment can be valuable in supporting your claim.
Performance Records: If your employer imposed unreasonable performance standards or gave unfair reviews, documentation of this can help show unreasonable pressure.
Formal Grievances and Responses: Keep copies of grievances you filed and any responses from your employer. A lack of response can often support your claim.
Before pursuing a constructive dismissal claim, check if you meet the following eligibility criteria:
Employment Duration: Generally, you need at least two years of continuous employment to file a claim in the UK. However, certain exceptions apply, including cases involving discrimination, whistleblowing, and breaches of contract.
Time Limit: You typically need to file a claim within three months of resigning, so it’s essential to act quickly.
If you’re unsure whether you qualify, contact Canko Law Firm for a case evaluation.
Here’s a step-by-step outline of how to initiate a constructive dismissal claim:
Seek Legal Advice
It’s crucial to consult an experienced employment lawyer to evaluate your situation and guide you on next steps. Our team at Canko Law Firm can help you understand your rights and evaluate the strength of your case.
File a Grievance (if possible)
Submitting a formal grievance can show that you tried to resolve the issue before resigning, which can help support your case in an employment tribunal.
Prepare a “Without Prejudice” Letter
In this letter, clearly state how your employer has breached your contract and indicate that you may pursue a claim. This letter can act as a starting point for negotiations and help avoid immediate resignation.
Resignation
Constructive dismissal claims often require resignation, so timing is essential. Consult your solicitor to determine the right time to resign, and always state the reasons for resignation clearly in your resignation letter.
File a Claim with the Employment Tribunal
Submit your claim to the employment tribunal within three months of your resignation date. Working with a solicitor can help streamline the process and improve your chances of success.
Compensation for constructive dismissal usually includes:
Basic Award
This is calculated based on age, weekly gross pay (up to a cap of £700), and years of service. As of April 2024, the maximum award is £21,000.
Compensatory Award
This part compensates for lost earnings due to resignation. The award is capped at one year’s salary or £115,115, whichever is lower.
Our employment law team can assist in calculating fair compensation and compiling evidence of lost income and job-search efforts.
You aren’t required to work your notice period in a constructive dismissal case, but doing so can carry risks:
Tolerance Evidence: Your employer might argue that working the notice period shows you accepted the mistreatment.
Implied Consent: Working the notice period might imply you tolerated the employer’s behavior, weakening your case.
Discuss with a solicitor to determine if working your notice period is in your best interest.
1. What is constructive dismissal?
Constructive dismissal is when an employee feels forced to resign due to severe mistreatment or contract breaches by their employer. Unlike traditional unfair dismissal—where an employer actively terminates an employee’s contract—constructive dismissal arises when working conditions become intolerable.
2. Do I need evidence to claim constructive dismissal?
Yes, strong evidence is crucial. Records of grievances, emails, text messages, and statements from witnesses strengthen your case. Detailed evidence helps prove that your resignation was the only reasonable course of action.
3. Can I claim constructive dismissal without two years of employment?
Generally, two years of continuous employment is required, but exceptions apply if you’re a whistleblower or have faced discrimination. If your claim involves a protected characteristic, contact us to see if an exception applies.
4. What can I do if my employer hasn’t responded to my grievance?
Employers must investigate grievances, so a lack of response can help your claim. Keep records of all attempts to resolve the issue and consult a solicitor for advice.
5. How much compensation can I expect?
Compensation varies by case, but generally includes a basic award and a compensatory award, which covers lost wages. Our team can calculate a fair compensation estimate based on your specific circumstances.
6. Is there a time limit for filing a constructive dismissal claim?
Yes, claims must be filed within three months of resignation. Acting quickly is crucial, so consult with a solicitor as soon as possible.
If you’re considering a constructive dismissal claim, contact Canko Law Firm today for expert advice. With our guidance, we can help you understand your options, negotiate effectively, and, if needed, represent you in an employment tribunal. Reach out to us by phone or email, and start taking control of your case with Canko Law Firm by your side.