{"id":175574,"date":"2022-09-01T03:49:58","date_gmt":"2022-09-01T02:49:58","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=175574"},"modified":"2023-04-19T03:21:30","modified_gmt":"2023-04-19T02:21:30","slug":"employee-constructive-dismissal","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/employment\/employee-constructive-dismissal\/","title":{"rendered":"What an Employer Should Know About Constructive Dismissal in England"},"content":{"rendered":"\n<p>As an employer, it is essential you know what constructive dismissal is and how to avoid it. Constructive dismissal refers to situations where your employee resigns and ends the employment relationship as they feel they have no other option. Accordingly, the employee may pursue legal action through a constructive dismissal claim. This can result in you paying your former employee compensation and could damage your reputation as an employer and as a business. This article will explain what you, as an employer, need to know about constructive dismissal. It will explain what it is, its repercussions, and how to avoid it.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What is Constructive Dismissal?<\/h2>\n\n\n\n<p>Constructive dismissal is when your employee resigns rather than when you actively dismiss them. They resign because they feel forced to due to their belief that you have broken their employment contract. The breach of an employment contract must be a serious one and could either be a one-off breach or multiple breaches that together make a serious breach. It could be a breach of an express term or an implied term of the employment contract. Constructive dismissal is not simply a result of unreasonable behaviour.&nbsp;<\/p>\n\n\n\n<p>Due to the breach, your <a href=\"https:\/\/legalvision.co.uk\/employment\/employment-status\/\">employee<\/a> has the right to consider themselves <a href=\"https:\/\/legalvision.co.uk\/employment\/dismissing-an-employee\/\">dismissed from employment<\/a> with you as the work environment has become too difficult to continue working in. Accordingly, resigning becomes their only option.<\/p>\n\n\n\n<p>Some examples of what might be a serious breach of an employment contract leading to constructive dismissal include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>regularly <a href=\"https:\/\/legalvision.co.uk\/employment\/overtime-rates\/\">not paying your employee<\/a> the correct amount of pay with no fair justification;<\/li>\n\n\n\n<li>bullying or discriminating against an employee;<\/li>\n\n\n\n<li>telling an employee they are performing poorly with no evidence to back your claims;<\/li>\n\n\n\n<li>not following health and safety laws in your employee\u2019s workplace;<\/li>\n\n\n\n<li>failing to make reasonable adjustments for an employee with a disability;<\/li>\n\n\n\n<li>withdrawing contractual benefits from employees;&nbsp;<\/li>\n\n\n\n<li>failing to deal with grievances an employee raises; or<\/li>\n\n\n\n<li>making unreasonable changes to your employee\u2019s working times without securing their agreement.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Repercussions of Constructive Dismissal<\/h2>\n\n\n\n<div  class=\"box box--icon box--info\">\n    <p>If your employee believes that you are seriously breaching their employment contract with the only option of resignation, they may be able to claim constructive dismissal. This form of unfair dismissal is legally termed \u2018constructive unfair dismissal\u2019.<\/p>\n<\/div>\n\n\n\n<p>A claim for constructive dismissal needs to show that:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>you have seriously breached the employment contract;<\/li>\n\n\n\n<li>your employee resigns as a result of this; and<\/li>\n\n\n\n<li>your employee resigns without delay after the breach.<\/li>\n<\/ul>\n\n\n\n<p>Claiming constructive dismissal means that your employees are taking legal action against you. They may have a case for an employment tribunal, and you may need to pay them compensation if they win. This may include loss of:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>wages;<\/li>\n\n\n\n<li>future wages; and<\/li>\n\n\n\n<li>effects, such as medical insurance.<\/li>\n<\/ul>\n\n\n\n<p>Generally, successful constructive dismissal claims are rare in employment tribunals. Nevertheless, you should take potential claims for constructive dismissal seriously.&nbsp;<\/p>\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+448081968584\" class=\"not-prose\">0808 196 8584<\/a> for urgent assistance.\n                <br>\n                Otherwise, complete this form, and we will contact you within one business day.\n                    <\/span>\n    <\/div>\n\n    \n\n<div class=\"not-prose flex justify-center text-left gform_input_bg_white    \">\n    <script>\nvar 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This includes abiding by your legal obligations to avoid a situation where you seriously breach your employee\u2019s employment contract. This may include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>treating your staff fairly;<\/li>\n\n\n\n<li>thinking before changing terms in an employment contract;<\/li>\n\n\n\n<li>obtaining the employee\u2019s agreement to changes to employment contract terms;<\/li>\n\n\n\n<li>ensuring your workplace policies and procedures are in place and accessible; and&nbsp;<\/li>\n\n\n\n<li>keeping up to date with employment law.<\/li>\n<\/ul>\n\n\n\n<p>If you find yourself in a situation where your employee is considering resigning based on constructive dismissal, they may first raise the issue informally. As an employer, you should try to deal with the matter informally or through grievance procedures to resolve it and avoid a claim for constructive dismissal.<\/p>\n\n\n\n<p>When you and your employee cannot resolve the issue, you may decide to make a settlement agreement with them. This is an agreement between you and your employee to end the working relationship amicably. Once employees sign a settlement agreement, they cannot claim constructive dismissal.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Important Factors<\/h2>\n\n\n\n<p> Some valuable points to note about constructive dismissal include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>claims are usually made by employees;&nbsp;<\/li>\n\n\n\n<li>a member of staff can usually make a claim for constructive dismissal after at least two years of employment;&nbsp;<\/li>\n\n\n\n<li>your employee can only make a constructive dismissal claim within three months from their final day of employment;<\/li>\n\n\n\n<li>employees must contact Acas before they claim constructive dismissal;<\/li>\n\n\n\n<li>it does not matter if you did not intend to breach the employment contract for the possibility of a claim for constructive dismissal; and<\/li>\n\n\n\n<li>where your employee resigns due to constructive dismissal, they usually do not need to give you any notice.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Key Takeaways<\/h2>\n\n\n\n<p>On the whole, employers should be careful to avoid constructive dismissal claims. You may potentially lose a valuable employee and have to pay compensation. Constructive dismissal results from you seriously breaching your employee&#8217;s employment contract through not paying them the correct wage without a good reason or bullying them. Therefore, you can avoid this by acting fairly and abiding by your legal employment obligations. If your business does face a constructive dismissal claim, it is best to deal with this informally or through your disciplinary and grievance procedures.&nbsp;<\/p>\n\n\n\n<p>If you need help understanding constructive dismissal in England, our experienced <a href=\"https:\/\/legalvision.co.uk\/employment-lawyers-lp\/\">employment lawyers<\/a> can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents for a low monthly fee. So call us today on <a href=\"tel:+448081968584\" class=\"AVANSERnumber dynamic-number\">0808 196 8584<\/a> or visit our<a href=\"https:\/\/legalvision.co.uk\/membership\"> membership page<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Frequently Asked Questions<\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1662000080704\"><strong class=\"schema-faq-question\"><strong>What is constructive dismissal?<\/strong><\/strong> <p class=\"schema-faq-answer\">Constructive dismissal is when your employee feels forced to resign, with no other option available, due to you seriously breaching their employment contract. The breach can be a one-off breach or a series of breaches that form a serious breach.\u00a0<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1662000089364\"><strong class=\"schema-faq-question\"><strong>Can any of my staff claim constructive dismissal?<\/strong><\/strong> <p class=\"schema-faq-answer\">A member of staff who has employment status can claim constructive dismissal. They will generally need to have been employed by you for at least two years.<\/p> <\/div> <\/div>\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"9eb4f72322\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/175574\" \/>            <input value=\"https:\/\/legalvision.co.uk\/employment\/employee-constructive-dismissal\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"What an Employer Should Know About Constructive Dismissal in England\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>As an employer, it is essential you know what constructive dismissal is and how to avoid it. Constructive dismissal refers to situations where your employee resigns and ends the employment relationship as they feel they have no other option. Accordingly, the employee may pursue legal action through a constructive dismissal claim. This can result in<a href=\"https:\/\/legalvision.co.uk\/employment\/employee-constructive-dismissal\/\">Continue reading <span class=\"sr-only\">&#8220;What an Employer Should Know About Constructive Dismissal in England&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13326,"featured_media":3175,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"2541,3496,173091,172748,2182,1605","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[35],"tags":[20,21,229,391,521],"class_list":["post-175574","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-employment","tag-small-business","tag-medium-business","tag-unfair-dismissal","tag-employment-agreement","tag-employee"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What is Employee Constructive Dismissal? 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