Constructive Dismissal

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Definitions

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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.

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Legal Requirements

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To successfully claim constructive dismissal, several legal requirements must be met:

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1. Breach of Contract: The employee must demonstrate that the employer committed a fundamental breach of the employment contract. This could include a breach of the implied term of mutual trust and confidence.

2. Resignation in Response: The resignation must be directly in response to the employer's breach. If the employee delays too long after the breach, they may be seen as having accepted the breach and cannot claim constructive dismissal.

3. No Alternative: The employee must have no reasonable alternative but to resign. If there were other reasonable steps the employee could have taken, such as using internal grievance procedures, their claim may be weaker.

 

Real life Examples with Case Law

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• Case Example: Western Excavating (ECC) Ltd v. Sharp (1978)

  • Situation: Sharp resigned after his employer refused to grant him a loan, which he needed to avoid financial difficulties. He claimed constructive dismissal due to financial pressure created by his employer.

  • Outcome: The Court of Appeal held that there was no constructive dismissal, as the employer's actions did not constitute a breach of contract.

• Case Example: Malik v. BCCI (1997)

  • Situation: Malik resigned after discovering that his employer, BCCI, was involved in fraudulent activities that damaged his professional reputation.

  • Outcome: The House of Lords ruled in Malik's favor, stating that the employer's conduct breached the implied term of trust and confidence, justifying his resignation.

• Case Example: Isle of Wight Tourist Board v. Coombes (1976)

  • Situation: Coombes resigned after being publicly humiliated by her manager in front of colleagues and members of the public.

  • Outcome: The tribunal found that the public humiliation constituted a fundamental breach of contract, leading to a successful constructive dismissal claim.

• Case Example: Lewis v. Motorworld Garages Ltd (1985)

  • Situation: Lewis resigned after his employer made significant changes to his job role and reduced his pay without consultation.

  • Outcome: The Court of Appeal found in favor of Lewis, ruling that the unilateral changes to his contract were a fundamental breach.

• Case Example: Bournemouth University Higher Education Corp v. Buckland (2010)

  • Situation: Buckland resigned due to the university’s mishandling of an academic dispute, which he felt undermined his position and reputation.

  • Outcome: The Court of Appeal upheld Buckland's claim, stating that the employer’s conduct amounted to a breach of the implied term of trust and confidence.

• Case Example: Tullett Prebon plc v. BGC Brokers LP (2011)

  • Situation: Several employees resigned after their employer systematically undermined their roles and forced them to work in a hostile environment.

  • Outcome: The High Court ruled in favor of the employees, recognizing the employer's actions as a breach of contract.

• Case Example: Hilton International Hotels (UK) Ltd v. Protopapa (1990)

  • Situation: Protopapa resigned after her employer falsely accused her of theft and mishandled the disciplinary process.

  • Outcome: The tribunal found that the employer’s conduct was a breach of the implied term of trust and confidence, leading to a successful constructive dismissal claim.

• Case Example: Jones v. F Sirl & Son (Furnishers) Ltd (1997)

  • Situation: Jones resigned after being subjected to persistent bullying and harassment by her manager, which the employer failed to address.

  • Outcome: The tribunal ruled in favor of Jones, stating that the employer's failure to prevent the harassment was a breach of contract.

• Case Example: Bovis Homes Ltd v. Kendrick (1999)

  • Situation: Kendrick resigned after his employer made significant changes to his job responsibilities without his consent.

  • Outcome: The tribunal found that the changes amounted to a fundamental breach of contract, justifying Kendrick's resignation.

• Case Example: Walker v. Northumberland County Council (1995)

  • Situation: Walker resigned after suffering a mental breakdown due to excessive workloads and lack of support from his employer.

  • Outcome: The court found that the employer’s failure to provide a safe working environment was a breach of the duty of care, supporting Walker's constructive dismissal claim.

These cases illustrate that constructive dismissal can take many forms and f you recognize any of these behaviors in your workplace, Canko Law Firm is here to help you understand your rights and take action to protect them.

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How We Can Help

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• Evaluate Your Case: We will thoroughly assess the circumstances surrounding your resignation to determine if you have a strong claim for constructive dismissal.

• Gather Evidence: We will assist you in collecting the necessary evidence to support your claim, including documentation of the breach of contract and any relevant communications with your employer.

• Negotiate on Your Behalf: If appropriate, we can negotiate with your former employer to seek a settlement before proceeding to a tribunal.

• Represent You in Tribunal: Should your case go to tribunal, we will provide expert representation to ensure your rights are protected and to maximize your chances of a successful outcome.

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