CONSTRUCTIVE DISMISSAL

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Constructive dismissal occurs where an employee tenders their resignation from their job due to the employer’s unacceptable behaviour. In these circumstances an employee’s resignation is treated as a dismissal by the employer entitling the employee to claim compensation for unfair dismissal in the Employment Tribunal. In order to justify an award of compensation an employer's actions must have amounted to a fundamental breach of the contract of employment that exists between the employer and employee which is not necessarily laid out in writing which resulted in the termination. An employee is entitled to resign over one serious incident or as a result of a number of smaller incidents, however the employee must resign soon after the incident in order to be able to rely upon it as grounds for claiming that the resignation was reasonable.

Examples of an employer’s action which could result in a successful application for compensation include unilateral amendments to the contract of employment which may include pay and conditions, loss of status, abusive behaviour, racial or sexual harassment and race or sex discrimination in the workplace. In the case of unacceptable behaviour by other employees, other than in exceptional circumstances, an employer should have been asked, and been given the opportunity, to take the appropriate measures to investigate and protect the employee from further incidents. Examples include:

• Loss of status, salary or position in unreasonable circumstances
• Harassment, bullying, humiliation or abuse
• Unreasonable amendments to working conditions or contracts
• False, malicious or unsupported accusations
• Unreasonable or excessive discipline
• Victimisation