HR Speak of the week. Constructive dismissal

Speak of the week?

This weeks Speak of the Week looks at “What is meant by constructive dismissal?”

Constructive dismissal

Constructive dismissal arises where the employer has committed a serious breach of contract in response to which the employee feels they have no choice but to resign. In a constructive dismissal context there will have been no actual dismissal. However, if the conduct that led to the employee’s resignation is sufficiently serious, this will entitle the employee to regard themselves as having been dismissed in consequence of that conduct.

An employee will be eligible to claim ‘constructive unfair dismissal’ if they have worked for the employer continuously for at least two years. However, there will be no qualifying length of service where the reason for the constructive dismissal is one which can be classed as automatically unfair, for example, if the employer has unlawfully discriminated against an employee.

A claim for constructive dismissal requires proof of contractual breach that is so serious it goes to the root of the employment relationship. Common examples of breaches of contract that could form the basis of a claim could therefore include: reducing an employee’s pay or not paying them at all; taking away other contractual benefits, such as a company car; demoting an employee without fair warning; making unreasonable changes to an employees’ working hours or place of work or forcing an employee to work in breach of health and safety laws.

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