In UK employment law, constructive dismissal is when an employee resigns because their employerโs conduct amounts to a serious breach of contract. These cases carry significant risks for employers, including tribunal claims, financial liability, and reputational damage.
This article explores constructive dismissal examples from UK case law, highlighting legal obligations, common warning signs, and the steps organisations can take to strengthen workplace practices to reduce the risk of claims.
What is constructive dismissal in the UK?
Under the Employment Rights Act 1996, Section 95(1)(c), if an employee resigns because of their employerโs serious breach of contract, that resignation is treated as constructive dismissal.
The courts have clarified what โserious breach of contractโ means through case law. In Western Excavating (ECC) Ltd v Sharp [1978] QB 761, the Court of Appeal explained that constructive dismissal occurs when an employerโs behaviour destroys the mutual trust and confidence that underpins the employment relationship and the employee has no choice but to resign.
It is important to know that โconstructive dismissalโ is different from โunfair dismissalโ:
- Constructive dismissal occurs when an employee resigns because of the employerโs serious misconduct, and the law treats that resignation as a dismissal.
- Unfair dismissal is when the employer directly ends the contract without a fair reason or without following a proper process. An example of unfair dismissal is dismissing an employee for raising a health and safety concern.
Constructive dismissal examples
There is no fixed statutory list of what counts as constructive dismissal. Instead, tribunals look at whether the employerโs behaviour amounted to a fundamental breach of contract that left the employee with no real option but to resign.
Here are some of the most common constructive dismissal examples in the UK:
Bullying and harassment
Persistent bullying or harassment can destroy the relationship of trust and confidence between employer and employee. If an employer allows this behaviour to continue unchecked, or fails to take complaints seriously, the employee may be entitled to resign and claim constructive dismissal.
For example, repeated verbal abuse, exclusion from meetings, or harassment related to a protected characteristic under the Equality Act 2010 may all be treated as breaches of the implied duty of mutual trust and confidence
Failure to provide a safe workplace
Employers have a legal duty under the Health and Safety at Work etc. Act 1974 to provide a safe working environment. If serious risks are ignored, or health and safety breaches are left unaddressed, employees may be able to resign and bring a constructive dismissal claim.
For example, requiring employees to work in unsafe conditions without proper protective equipment, or failing to address repeated reports of workplace hazards, could amount to constructive dismissal.
Tribunals look at whether the risk posed to health and safety was serious and whether the employer took reasonable steps to resolve it.
Unilateral changes to pay, hours, or duties
Another common ground for constructive dismissal is when an employer imposes major changes to an employment contract without agreement. Examples include cutting wages, reducing hours, changing shift patterns, or reassigning an employee to a role of lower status.
Tribunals assess whether the changes were reasonable, agreed in advance, and whether consultation took place. Where none of these apply, the changes may justify resignation.
Return-to-office demands and flexible working
A key emerging issue in the UK is whether forcing employees back into the office, particularly after hybrid or remote working, can amount to constructive dismissal.
Under the Employment Relations (Flexible Working) Act 2023, all employees can request flexible working from day one. Employers do not have to approve every request, but they must respond fairly, consult properly, and provide sound business reasons if they refuse. Return-to-office policies must take account of individual circumstances, such as caring responsibilities.
If an employer withdraws hybrid arrangements without consultation, or ignores flexible working requests, this can be seen as a unilateral change to contractual terms. In some cases, this may justify resignation and a constructive dismissal claim.
Ignoring grievances or formal complaints
If an employee raises a complaint about issues such as bullying, pay, or discrimination, and the employer fails to investigate fairly or respond at all, this can amount to a serious breach of the employment contract.
The ACAS Code of Practice on Disciplinary and Grievance Procedures requires employers to manage grievances promptly, impartially, and fairly. Ignoring them undermines the implied duty of mutual trust and confidence, and tribunals often treat this as a fundamental breach of contract.
Breach of trust and confidence
The implied duty of mutual trust and confidence is at the heart of most constructive dismissal claims. Examples include unfair treatment, singling out an employee for criticism, or discriminating against them.
A tribunal will consider whether the employerโs conduct, viewed as a whole, was serious enough to destroy trust in the employment relationship. One-off incidents may not always be enough, but a pattern of behaviour or an especially serious act can justify resignation.
Case studies: successful constructive dismissal cases
Real tribunal decisions highlight how the law on constructive dismissal is applied in practice. These examples of successful constructive dismissal claims show the different ways employers can breach the duty of trust and confidence.
Moores v Bude-Stratton Town Council [2000] IRLR 676
This case involved persistent bullying and harassment by colleagues. The employee complained repeatedly, but the employer failed to take effective action.
The Employment Appeal Tribunal found that ignoring these complaints undermined trust and confidence, forcing the employee to resign. The case demonstrates how an employerโs inaction in the face of bullying can amount to constructive dismissal.
Waltons & Morse v Dorrington [1997] IRLR 488
Here, the employee was required to work very long hours, often late into the evening, without adequate breaks or support which put their health and wellbeing at risk.
The employerโs failure to provide a safe workplace was judged to be a breach of the implied term of trust and confidence. The tribunal held that the employee had no choice but to resign, establishing unsafe working conditions as a recognised ground for constructive dismissal.
United Bank Ltd v Akhtar [1989] IRLR 507
This case concerned the use of a relocation clause in the employeeโs contract. The employer moved the employee at very short notice and without reasonable support.
The tribunal found that such treatment was unreasonable and breached the employment contract. It highlights how even contractual clauses must be exercised fairly and reasonably, or they risk leading to constructive dismissal.
Holt v Bannatyne Fitness Ltd (2019)
A manager made repeated flexible working requests to balance her role as a single parent. The employer dismissed her applications without meaningful consultation and failed to consider her caring responsibilities.
The Employment Tribunal concluded that this lack of engagement by the employer undermined mutual trust and confidence, amounting to constructive dismissal.
Abbey National plc v Fairbrother [2007] IRLR 320
The employee in this case raised several grievances about her treatment at work which included bullying, unfair distribution of workload, and being marginalised. The employer either ignored the grievances or handled them in a dismissive way.
The Court of Appeal ruled that the failure to deal with grievances fairly breached the implied duty of trust and confidence. The employeeโs resignation was therefore treated as constructive dismissal, reinforcing the importance of employers engaging properly with formal complaints.
Lewis v Motorworld Garages Ltd [1985] IRLR 465
In this case, the employee faced a series of negative changes including demotion, reduction in pay and an increase in hours combined with unsupportive treatment by management.
While no single action alone was enough to justify resignation, the Court of Appeal held that the cumulative effect of the employerโs behaviour destroyed trust and confidence. The employeeโs resignation was treated as constructive dismissal, illustrating that a โlast strawโ series of incidents can be as damaging as one serious breach.
How do you prove constructive dismissal?
In constructive dismissal cases the employee must show that their resignation was forced by the employerโs conduct, so strong evidence is essential.
Gather evidence
The first step in proving constructive dismissal is collecting clear evidence of the employerโs behaviour. This may include emails, letters, meeting notes, internal memos, or witness statements that demonstrate how the employer acted.
The stronger and more objective the evidence, the better the chance of showing a tribunal that the employerโs conduct was serious enough to justify resignation.
Keep a record of incidents
Employees should keep a detailed record of the events that led them to resign. This log may include dates, times, and descriptions of bullying, unreasonable changes to contract terms, ignored grievances, or health and safety failures.
These records provide a timeline of the signs of constructive dismissal and show the tribunal a pattern of behaviour rather than isolated incidents.
Prove a fundamental breach of contract
The evidence and records collected to support the case must show that the employerโs conduct amounted to a fundamental breach of contract. In most cases, this means a breach of the implied term of mutual trust and confidence, though other breaches (like failing to pay wages) may also apply.
The key is proving that the behaviour was serious enough to destroy the employment relationship.
Act quickly after the breach
Timing is critical in constructive dismissal claims. Once an employer commits a fundamental breach of contract, the employee must resign in response to that breach. If they continue working for too long afterwards, a tribunal may find they have โaffirmedโ or โacceptedโ the breach, which can prevent them from succeeding in a claim.
The case of WE Cox Toner (International) Ltd v Crook [1981] IRLR 443 illustrates this point. Mr Crook, a director, had most of his responsibilities removed, leaving him with little meaningful work. This was serious enough to amount to a breach of the implied duty of trust and confidence. However, instead of resigning promptly, he carried on working for several months. The tribunal found that by delaying his resignation he had accepted the breach, and as a result, his constructive dismissal claim failed.
Who can claim constructive dismissal?
Most employees must have at least two yearsโ continuous service with their employer before they can bring a constructive dismissal claim. This rule comes from the unfair dismissal provisions in the Employment Rights Act 1996, Section 108(1), which states that the right not to be unfairly dismissed in Section 94 only applies if the employee has two yearsโ service at the date their contract ends.
Constructive dismissal is defined separately in the Employment Rights Act, Section 95 (1), but because it is treated in law as a type of unfair dismissal, the two-year qualifying period usually applies.
There are important exceptions to the two-year rule:
- Discrimination, which is unlawful under the Equality Act 2010.
- Whistleblowing, which is protected under the Public Interest Disclosure Act 1998.
In those cases, employees can claim from day one of employment.
Employees must also follow the proper procedure before making a constructive dismissal claim. This usually involves:
- Raising a grievance internally to give the employer an opportunity to resolve the issue.
- Going through ACAS Early Conciliation, which is a mandatory step before submitting an Employment Tribunal claim.
Under the Employment Rights Act 1996, Section 111(2)(a), a tribunal claim for constructive dismissal must normally be lodged within three months less one day from the date of resignation.
Preventing constructive dismissal through training
The constructive dismissal examples we have shared here arise from issues that could have been prevented with better awareness, clearer policies, and a stronger workplace culture. Proactive training helps managers and employees understand their responsibilities, address problems early, and create a respectful and inclusive environment.
Our Business Essentials training courses reduce the risks of grievances escalating into disputes. Popular courses include:
- Equality and Diversity Training for Managers and Equality and Diversity Training for Employees โ supporting compliance and fostering an inclusive workplace.
- Workplace Neurodiversity Training โ helping managers and teams support neurodivergent colleagues effectively.
- Preventing Sexual Harassment Training and Sexual Harassment in the Workplace Training for Managers โ ensuring employees understand the law, reporting duties, and best practice.
- Bullying and Harassment Training โ addressing unacceptable behaviour and building a respectful culture.
- Unconscious Bias Course โ raising awareness of bias and promoting fair decision-making.
Explore our full range of Business Essentials courses or call our friendly team today on 0203 011 4242 / info@praxis42.com to see how we can support your organisation with bespoke training options.
Adam Clarke
Managing Director (Consulting)
