What Is Constructive Dismissal
Constructive dismissal occurs when an employee resigns because the employer's conduct was so serious that it amounted to a fundamental breach of the employment contract. The employee treats themselves as dismissed by the employer's breach. To succeed, you must prove three things: the employer committed a fundamental breach of contract, you resigned in response to that breach, and you did not delay so long that you are taken to have accepted the breach.
What Constitutes a Fundamental Breach
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A fundamental breach is a serious breach that goes to the root of the contract. Examples include: a unilateral and significant reduction in pay, a unilateral change to working hours, location, or role, a sustained course of bullying or harassment the employer fails to address, failure to pay wages, and serious breaches of the implied duty of trust and confidence.
The Implied Duty of Trust and Confidence
Every employment contract contains an implied term that neither party will, without reasonable and proper cause, conduct themselves in a manner calculated or likely to destroy or seriously damage the relationship of confidence and trust between employer and employee. This is a broad implied term that can be breached by a course of conduct even if no single act is sufficient.
Raise a Grievance First
Before resigning, raise a formal written grievance. This gives the employer the opportunity to remedy the situation. A resignation without a prior grievance significantly weakens a constructive dismissal claim. The tribunal will ask what steps you took to resolve the situation before resigning.
Act Promptly
Once you become aware of the fundamental breach, you should resign reasonably promptly. Continuing to work for an extended period after the breach risks the tribunal finding that you affirmed the contract -- accepted the breach and waived your right to treat it as a dismissal.