Constructive dismissal

Where an employer has committed a serious breach of contract, the employee may be able to claim constructive dismissal entitling the employee to resign as a result of the employer's conduct. This then enables the employee to make claims for compensation for wrongful dismissal or unfair dismissal.

It is not enough to show merely that the employer has behaved unreasonably - it must be a fundamental breach of the implied term of trust and confidence between the employer and employee. Furthermore, the employee must have left because of the breach and must make it clear when he resigns that he regards himself as having been constructively dismissed. Furthermore, the employee must be careful not to have waived the breach. In other words, he must not delay his resignation too long or do anything which signals an acceptance of the breach.

Examples of breaches of contract entitling an employee to claim constructive dismissal include:

	Reduction in pay
	Demotion without reason
	Unreasonable disciplining of the employee
	Complete change in the nature of the job
	Harassing or humiliating staff

The fact that an employee may be able to show that he has been constructively dismissed does not automatically mean that such dismissal is unfair. The employee would have to go on to show that this was an unfair dismissal.

What is the criteria for being able to make a claim for constructive dismissal?
The employee must have been continuously employed for a period of 1 year in order to bring a claim for constructive dismissal.

It is important that the employee, except without very good reason, lodges a formal grievance against the employer before he or she resigns. Failure to do so may mean that the tribunal will refuse to issue the claim. This statutory grievance procedure came into force in October 2004, and is intended to encourage resolution of disputes between the parties.

It is possible for a grievance to be lodged after you have resigned/left employment.

What remedies are available for constructive dismissal?
The remedies available for constructive dismissal are exactly the same as those for unfair dismissal.

When should a claim for constructive dismissal be made?
A claim for constructive dismissal should be made to the Tribunal within a period of 3 months from the date that the employee resigned. The tribunal has the power to extend the time for issuing the claim where there is a pending formal grievance process in place.

Other aspects of UK employment law for employees include:

Choose area of interest Age discrimination Bonuses Compromise agreements Constructive dismissal Contracts of employment Dismissal and grievance Procedure Maternity Notice Race discrimination Redundancy Restrictive convenants Sex discrimination Sexual orientation Sickness Unfair dismissal Working parents Wrongful dismissal