First thing’s first: What is a settlement agreement? Well, it’s a document which confirms compensation for loss of employment and records an employee’s confirmation that they will not make a claim against their employer. These claims are far ranging, from unfair dismissal and discrimination to redundancy and unpaid wages. The…Read more
We may be able to help you pursue a No Win, No Fee claim for compensation.
Constructive DismissalMake an Enquiry
Have you resigned from your job, or are you considering quitting, because of your employer’s conduct towards you?
In certain circumstances, the conduct you have experienced may amount to Constructive Dismissal and you may be able to claim compensation as a result.
To speak with one of our specialist Solicitors about your situation, and for advice on the options you have available, please call us on 0800 092 1448 or fill in the form and we will call you back.
If you are still currently working in your job, but are considering resigning on grounds of Constructive Dismissal then we would strongly recommend you seek legal advice before taking any action. See below for more details.
The best procedure is to make it clear to your employer that your resignation is on the grounds of Constructive Dismissal. It would be useful to set out why you consider you have been treated unfairly and how this amounts to a fundamental breach of contract.
The ACAS Code states that you should lodge a formal grievance with your employer before taking any steps to resign. This is to give your employer an opportunity to resolve the situation first. However, under certain circumstances it is not possible to raise a grievance before resigning (for example, in severe cases of bullying or discrimination).
In such situations, you would not usually be penalised for failing to lodge a formal grievance before resigning.
If you are still currently working in your job, but are considering resigning on grounds of Constructive Dismissal then we would strongly recommend you seek legal advice before taking any action.
It may be possible to negotiate an exit with your employer as an alternative to pursuing a claim before an Employment Tribunal. This would ordinarily involve you receiving a lump sum payment in exchange for your employment rights.
We can assist you with such a negotiation if there is a strong legal basis for claiming Constructive Dismissal. Please contact us for further advice and assistance.
If you are successful with a Constructive Dismissal claim before an Employment Tribunal then you may receive compensation consisting of both a Basic Award and a Compensatory Award.
The Basic Award is calculated according to your age, your length of service and your gross weekly pay. The maximum Basic Award is currently capped at £15,240.
The maximum Compensatory Award is usually 12 months net pay, to a current maximum of £83,682. In some circumstances, this cap will not apply. For example, there is no maximum limit of compensation if you successfully claim Constructive Dismissal on grounds of Discrimination.
Constructive Dismissal can occur when an employee resigns from their position in response to a serious breach of contract by their employer. When this occurs, it may be possible to pursue a claim for compensation.
It is not enough to show that your employer has been unreasonable. In order to succeed in a claim for Constructive Dismissal there must be a fundamental breach of a term of the employment contract.
This list is not exhaustive and each case of Constructive Dismissal needs to be considered on its individual facts. If your employer acts in a manner which makes your position untenable and breaches your employment contract then you may have grounds for claiming Constructive Dismissal.
An employee will need to show that the reason for their resignation was the breach of contract which occurred.
It must also be demonstrated that they did not accept or waive the breach of contract through their conduct. This could possibly occur if there is a long delay in resigning after the breach occurred, or if there is written acceptance of a change to employment terms (e.g lower pay, demotion etc).
- Being demoted without good reason
- Harassment, bullying or discrimination
- Unfounded allegations of poor performance
- Reduction in salary without good reason
- Working in conditions which breach Health & Safety laws