29th April 2025 | Gabriel Cooke | Employment, Constructive Dismissal, Employee

Gabriel Cooke, Trainee Solicitor in our Employment and Immigration team, explores the important issue of constructive dismissal in the UK, highlighting how employees can recognise and respond to being forced out of their jobs.

As part of The Sherrards Training Academy, our Legal Assistants and Trainee Solicitors regularly contribute articles to enhance their professional development and personal branding. This informative piece has been carefully fact-checked and proofread by Senior Associate, Emma O’Meara.

In the UK, employees are protected against unfair treatment in the workplace. One such protection is against constructive dismissal. The fundamental difference between this and other dismissal claims is that in this case, the employee has resigned, as opposed to the employer expressly dismissing them. This article outlines what constitutes constructive dismissal, how to identify it, and the steps you can take if you believe you’re being forced out of your job.​

What is Constructive Dismissal?

Constructive dismissal arises when an employee resigns because their employer has committed a serious breach of contract, making the working environment untenable. This breach can be a single serious incident or a series of incidents that collectively undermine the employment relationship.​

Examples of Employer Conduct Leading to Constructive Dismissal

Common scenarios that may lead to a claim include:​

  • Significant changes to job duties without consultation
  • Unjustified demotion
  • Non-payment or reduction of salary
  • Failure to address workplace harassment or bullying
  • Unsafe working conditions
  • Unreasonable disciplinary procedures​

That said, not all unfavourable actions by an employer will constitute constructive dismissal. The breach must be fundamental and must go to the heart of the employment contract.​

Legal Considerations

To pursue a claim for constructive dismissal, certain criteria must be met:​

  • You must be an employee (not a contractor or self-employed).
  • Typically, a minimum of two years’ continuous service is required, unless the claim involves discrimination or whistleblowing.
  • You must resign in response to the employer’s breach, and the resignation should occur promptly after the breach.​

Delaying resignation may be interpreted as acceptance of the new terms, potentially weakening your claim.​

Steps you can take

If you believe you’re facing constructive dismissal:

  1. Keep detailed records of all relevant events, communications, and changes to your employment terms.
  2. Utilise your employer’s grievance procedure to formally address the issues.
  3. Try to speak with an employment law specialist to assess the strength of your case and explore your options.
  4. Consider the timing of your resignation. If you decide to resign, ensure it’s done promptly and make sure to clearly state that the resignation is due to the employer’s breach(es).​

Potential Remedies

If a tribunal upholds your claim of constructive dismissal, you may be entitled to:​

  • Compensation: Made up of a basic award (same calculation as statutory redundancy pay) and a compensatory award (which includes financial losses, i.e. loss of earnings and benefits).
  • Damages: For breach of contract, usually notice pay if you resign without notice. You are required to take reasonable steps to mitigate your losses, however, and any money that you do earn during the period equivalent to your notice period will reduce the damages that the employer is obliged to pay.
  • Discrimination: Where it is established that the repudiatory breach leading to the constructive dismissal was a discriminatory act, damages for the discriminatory element will be assessed separately, although a tribunal cannot award the same compensation for financial loss twice​.

The exact compensation will depend on the specifics of your case, including financial losses and the circumstances surrounding your resignation.​

Conclusion

It is important to note that constructive dismissal claims are complex and require careful consideration. If you’re experiencing significant issues at work and are contemplating resignation, it’s crucial to seek professional advice to understand your rights and the potential implications.​

For further information or to discuss your situation, please contact our employment law team.