Glossary · UK
What is Constructive Dismissal?
A claim available when an employee resigns in response to a fundamental breach of contract by their employer, treating themselves as dismissed even though they were not formally sacked.
Full Definition
Constructive dismissal occurs when an employee resigns, with or without notice, in response to a fundamental (repudiatory) breach of contract by their employer -- serious enough to go to the root of the employment relationship -- and the employee is legally entitled to treat that breach as ending the contract even though they, not the employer, initiated the resignation. Common triggers include a unilateral cut to pay or demotion without agreement, a serious breach of the implied term of mutual trust and confidence (for example persistent bullying, unaddressed harassment, or a false and damaging allegation handled unfairly), unsafe working conditions, or a fundamental change to job duties or location imposed without consent. To succeed in an employment tribunal claim, the employee generally must show there was a genuine breach, that they resigned because of it rather than for an unrelated reason, and that they did not delay so long, or otherwise act in a way that suggested acceptance of the change, that they are treated as having "affirmed" the contract and waived the breach. Where a tribunal finds constructive dismissal, it is treated as a dismissal for unfair dismissal purposes, so the employee can go on to argue the dismissal itself was unfair, provided they have the qualifying length of service (normally two years) required to bring an unfair dismissal claim.