What is Contructive Dismissal
Constructive dismissal occurs when an employee resigns because of the employer’s conduct, which fundamentally breaches their employment contract. In the UK, the key to claiming constructive dismissal lies in proving that your employer’s behaviour made it untenable for you to continue working. The breach must be serious enough that it effectively forces your resignation, as you believe you have no other choice.
Unfair Dismissal Examples
First and foremost, it’s crucial to identify whether the employer’s actions amount to a fundamental breach of contract. Examples include significant changes to your job duties without agreement, sudden pay reductions, bullying, harassment, or creating an intolerable working environment. If your employer has failed to provide a safe and supportive workplace or made unreasonable changes to your working conditions, these may constitute grounds for constructive dismissal. However, it is important to note that a minor breach would not normally suffice. The breach must be severe enough to justify your resignation.
Unfair Dismissal
Before resigning, it is advisable to try and resolve the issue internally, if possible. Engaging in a formal grievance procedure may demonstrate that you gave your employer the opportunity to rectify the situation before taking the drastic step of leaving your job. This not only strengthens your position but also shows that you have acted reasonably and in good faith. Keep detailed records of any incidents, meetings, or communications regarding your concerns, as this documentation could serve as vital evidence should you need to pursue legal action.
If you do feel you have no option but to resign, ensure that you do so promptly after the breach occurs. Delaying your resignation for too long could be seen as accepting the breach, thereby weakening your claim. It’s also advisable to seek legal advice before making any final decisions, as constructive dismissal claims can be complex and time-sensitive. An employment solicitor can help you evaluate whether you have a strong case and guide you through the steps to take if you proceed with a claim.
Remember that constructive dismissal claims are heard in employment tribunals, and you would need to show that your employer’s conduct was directly responsible for your resignation. If successful, you could be entitled to compensation, which may include loss of earnings and other losses incurred due to the dismissal. However, making a claim can be a stressful and lengthy process, so carefully consider your options and seek professional guidance before embarking on this course of action.
Constructive Dismissal Compensation
Compensation for constructive dismissal in the UK is typically made up of two elements: a basic award and a compensatory award. The basic award is calculated similarly to redundancy pay and depends on your age, length of service, and weekly pay (capped at a statutory limit). The compensatory award, on the other hand, is designed to cover financial losses arising from the dismissal, such as loss of earnings, future loss of earnings, and other expenses incurred as a result of being dismissed. However, this is subject to a cap, currently set at the lower of £105,707 or one year’s gross salary (as of 2023). The compensation aims to put you back in the financial position you would have been in had the dismissal not occurred, but it does not include compensation for emotional distress or injury to feelings unless the dismissal involved discrimination or other exceptional circumstances.
Constructive Dismissal Qualifying Period
In the UK, to bring a claim for constructive dismissal, an employee typically must have been continuously employed by their employer for at least two years. This qualifying period applies to most unfair dismissal claims, including constructive dismissal. However, there are exceptions to this rule. If the resignation was due to a breach of contract related to unlawful discrimination, whistleblowing, or health and safety concerns, the two-year qualifying period may not apply. In these cases, the employee could potentially make a claim without meeting the usual service requirement. It’s essential to consider your specific circumstances and seek legal advice to understand whether you meet the necessary criteria to pursue a claim.
