Constructive Unfair Dismissals
If an employer creates such an intolerable working environment that it drives its employees to resign (usually by reason of a fundamental breach of contract) then the employee may have grounds to claim constructive unfair dismissal. Examples of this include a demotion, pay reduction or major change to the role that leaves the employee feeling they have no option but to quit their job.
Whilst many of these situations can be very difficult for employers to deal with, they should remember that there is no such thing as a free pass when it comes to unfair treatment of staff. It is also important that any changes to an employee’s contractual terms are made fairly and in accordance with the law.
There are a number of key things to be aware of when it comes to constructive termination and assessing whether a claim exists. Firstly, the change must be substantial. Although there are no set guidelines as to what constitutes a substantial change, any such change that has a significant impact on an employee should be carefully considered. Secondly, it must be a unilateral change. Employers are generally expected to give notice of any proposed changes to their employees. It must also be clear that the change is a material change to the employment contract.
Examples of Constructive Unfair Dismissals
It is very important that any issues are addressed as soon as possible and not left to get out of control. This will help to reduce the chances of a constructive dismissal being brought against the employer as it will give the employer an opportunity to respond and to demonstrate that they were acting fairly.
However, if it does get out of hand and the claimant decides to resign they should be aware that this could result in a delay in them receiving their Jobseekers Allowance or Universal Credit until a tribunal case can be decided. They should therefore consider carefully whether they are in a position to continue to stay on and whether they would be better off leaving their job immediately.
If they do choose to leave immediately they should ensure that they have a firm date in mind for their departure to avoid being stuck without income for some time. Similarly, they should make their employer aware of their intention to resign and that they are doing so because of a fundamental breach of contract. They should then raise a grievance with their employer in the hope of reaching a resolution through Acas rather than going to tribunal, if at all possible.
This approach can often save the company time and expense whilst giving them a chance to demonstrate that they have followed a fair procedure. For more information on the Acas early resolution process speak to one of our experts today on 01455 858 132. You can also contact us online. We have a team of expert employment lawyers who are available to advise on any workplace issues you might have.
