Constructive dismissal remains one of the most challenging and often misunderstood areas of employment law. It occurs when an employee feels compelled to resign because their employer has fundamentally breached the terms of their contract,  damaging implied term of trust and confidence. But how can you avoid such claims in the first place?

Unlike dismissal due to conduct, the burden is on the employee to prove that the employers conduct was so serious that it left them with no other alternative but to resign. Proving this can be difficult and each case is dependant on specific facts and circumstances.

Recent tribunal decisions provide insight on how they interpret and apply the principles of constructive dismissal, offering practical examples of employer conduct deemed serious enough to justify an employee’s resignation.

Recent Cases Illustrating Constructive Dismissal

Case 1: Mrs Hamilton v Epsom and St Helier University Hospitals NHS Trust

Mrs Hamilton, a diabetes specialist nurse, resigned after her employer failed to address persistent hostile behaviour from a colleague and did not implement grievance appeal recommendations in a timely manner. Examples of the colleague’s behaviour included ignoring her greetings and excluding her from small social actions like making tea.

The tribunal found the Trust’s inadequate response to be a breach of the implied term of trust and confidence, justifying her resignation. Mrs Hamilton was awarded £41,000 in compensation for constructive unfair dismissal.

Case 2: Mr Walker v Robsons (Rickmansworth) Limited

Mr Walker, an estate agent, was moved to another branch without a discussion on why, had his role altered without consultation, and he was asked to sit at a “middle desk”, which he perceived as a demotion. He also experienced poor communication and an age-related remark from management around the decision.

The tribunal ruled these actions breached the implied term of trust and confidence. Mr Walker’s resignation was therefore a constructive dismissal. Although his age discrimination claim was dismissed, his constructive unfair dismissal claim succeeded, with a remedy hearing for compensation pending.

Key Reminders for Employers

These cases highlight how seemingly minor workplace behaviours, if left unaddressed, can escalate into serious breaches with costly consequences for employers. They underline the critical importance of promptly addressing grievances and maintaining respectful, transparent communication to prevent disputes from escalating into claims of constructive unfair dismissal.

By understanding and mitigating the risks revealed in these cases, employers can:

• Prevent employee resignations triggered by avoidable breaches.
• Reduce exposure to unfair dismissal claims.
• Maintain positive, productive workplace relationships.
• Demonstrate compliance with employment law and best practice.

Practical Tips for Employers

• Take grievances seriously and act promptly - ignoring or delaying complaints, especially about workplace behaviour, can escalate into breaches of trust and confidence.
• Maintain clear, respectful communication - any changes to roles or working conditions should be openly discussed and agreed with employees.
• Avoid unilateral changes to terms - sudden role changes or perceived demotions without consultation risk breaching contracts.
• Support employees affected by workplace conflict - provide appropriate support and safeguards throughout and after grievance procedures.
• Implement policies and training - clear workplace behaviour policies and manager training help reduce the risk of damaging employee relations.

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