What is Constructive Dismissal?
When you resign from your job because your employer has made your working conditions intolerable, this is known as constructive dismissal. In the UK, constructive dismissal happens when an employee feels they have no choice but to leave their role due to their employer’s serious breach of contract or ongoing unfair treatment. Unlike being directly fired or laid off, constructive dismissal means you are the one handing in your notice – but only because your employer’s actions have left you with little alternative.
Constructive dismissal is recognised as a type of Unfair Dismissal under UK employment law. This means that if you resign for valid reasons related to your employer’s conduct, you may be able to challenge your departure in the same way as if you had been dismissed outright. The key difference is that, in constructive dismissal cases, you must show that your employer’s behaviour was so unreasonable that it effectively forced you to resign.
Typical examples of situations that might amount to constructive dismissal include:
- Significant changes to your contract: If your employer changes your job duties, hours, or pay without your agreement, this could be a breach of contract.
- Bullying or harassment: Persistent bullying, harassment, or discrimination by your employer or colleagues, especially if your employer fails to address it, may justify your resignation.
- Unsafe working conditions: If your employer ignores health and safety laws and puts you at risk, this can also be grounds for constructive dismissal.
- Non-payment of wages: Failing to pay you on time or withholding your wages is a serious breach of your employment contract.
To claim constructive dismissal, you must usually show that your employer’s actions were a fundamental breach of your contract and that you resigned in direct response to this breach. The legal framework for these rights is set out in the Employment Rights Act 1996, which details the protections available to employees facing unfair treatment at work.
It’s important to note that constructive dismissal is not always easy to prove. The circumstances must be serious, and you should ideally seek advice before resigning. For a broader overview of dismissal law and how constructive dismissal fits within other forms of termination, see our section on Dismissal Law in the UK: An Overview.
Understanding your rights around constructive dismissal can help you decide what steps to take next if you feel forced to leave your job due to your employer’s conduct. If you believe you have a claim, gathering evidence and acting promptly can strengthen your case.
Recognising Unfair Treatment That May Lead to Constructive Dismissal
Recognising Unfair Treatment That May Lead to Constructive Dismissal
Understanding what counts as unfair treatment is a crucial first step if you believe you have been forced to resign from your job. Constructive dismissal occurs when your employer’s actions or behaviour make your working environment so difficult or unpleasant that you feel you have no choice but to leave. This is different from being directly dismissed or made redundant. To learn more about how constructive dismissal fits within the wider legal framework, you might find it useful to read about Constructive Dismissal.
Common Types of Unfair Treatment
Several types of employer behaviour can amount to unfair treatment and may justify a claim for constructive dismissal. Some of the most common examples include:
- Harassment or bullying: Persistent unwelcome behaviour, whether from colleagues or managers, can create a hostile work environment.
- Breach of contract: If your employer breaks the terms of your employment contract – such as failing to pay your wages, drastically changing your job role, or reducing your hours without agreement – this can be grounds for constructive dismissal.
- Demotion without cause: Being demoted or having your responsibilities unfairly reduced without proper reason or consultation can be a serious breach of trust.
- Unsafe or unhealthy working conditions: If your employer fails to provide a safe workplace or ignores health and safety regulations, you may be entitled to resign and claim constructive dismissal.
- Unreasonable disciplinary action or false accusations: Facing unfair disciplinary procedures or being wrongly accused of misconduct can also contribute to a claim.
The Importance of Understanding Your Employment Contract
Your employment contract sets out your rights and obligations at work. Understanding the terms of your contract is essential, as your employer’s actions will be judged against these terms in any constructive dismissal claim. For example, if the contract promises a certain salary, role, or working conditions, and your employer fails to uphold these, you may have strong grounds for a claim.
If you don’t have a copy of your employment contract, it’s important to obtain one as soon as possible. This will help you check exactly what was agreed and whether your employer has breached those terms. For guidance on how to do this, see UK Workers: How to Request Your Employment Contract.
Keeping Records of Unfair Treatment
If you are experiencing unfair treatment at work, keeping detailed records is vital. Make a note of dates, times, and details of any incidents, conversations, or changes to your job. Save relevant emails, messages, or written warnings. This documentation will be important evidence if you decide to make a claim for constructive dismissal.
Having a clear record of events not only strengthens your case but can also help you recall specific details if your claim goes to an employment tribunal. It’s also a good idea to keep copies of any formal complaints you make to your employer and their responses.
By recognising the signs of unfair treatment and understanding your rights, you can take informed steps to protect yourself and build a strong case if you decide to pursue a claim for constructive dismissal.
Steps to Take If You Believe You Have Been Constructively Dismissed
If you believe you have been constructively dismissed, it’s important to take the right steps to protect your position and maximise your chances of a successful claim. Below, we outline the key actions you should consider.
1. Raise Your Concerns with Your Employer
Before resigning, you should try to resolve the issue by raising your concerns with your employer. Most workplaces have formal procedures in place for dealing with complaints or disputes, known as grievance procedures. Following these procedures shows that you have given your employer a fair opportunity to address the problem.
You can find official advice on how to do this in the Grievance Procedure Guidance, which explains how to set up a grievance, what to expect during a grievance hearing, and how appeals are managed. Employers are required by law to provide details of their grievance procedure, usually in your contract, staff handbook, or statement of employment.
2. Use Work Grievance Meetings
Work grievance meetings are a formal way to discuss your issues with your employer. These meetings allow both sides to present their views and can sometimes lead to a resolution without the need to resign. Participating in a grievance meeting can also demonstrate to an employment tribunal that you took reasonable steps to resolve the dispute. To understand what happens in these meetings and how to prepare, see our page on Work Grievance Meetings.
3. Seek Advice and Support Early
It’s wise to seek independent advice as soon as you feel you might be forced to leave your job. Early support can help you understand your rights, gather evidence, and make informed decisions about your next steps. You may wish to consult a trade union representative, an employment adviser, or a solicitor. Our guide on What Action Should You Take in Workplace Disputes? offers practical tips on managing workplace problems and coping with the stress that can come with unfair treatment.
4. Consider the Timing of Your Resignation
The timing of your resignation is critical in constructive dismissal cases. Generally, you should resign soon after the event (or events) that led to your decision to leave. If you wait too long, it may be seen as accepting your employer’s conduct, which could weaken your claim. If there’s a series of incidents, you may be able to rely on the “last straw” principle, but it’s still important to act promptly.
5. Be Aware of Strict Time Limits
If you decide to make a constructive dismissal claim, you must act quickly. In most cases, you need to bring your claim to an employment tribunal within three months less one day from the date your employment ended. Missing this deadline can mean you lose your right to claim, regardless of the circumstances.
6. Understand Your Legal Position
Constructive dismissal is a complex area of employment law. To strengthen your case, you need to show that your employer’s actions amounted to a serious breach of contract, and that you resigned as a direct result. For a detailed explanation of your rights and what counts as constructive dismissal, visit our Constructive Dismissal section.
Taking these steps can help you protect your rights and build a stronger case if you decide to take legal action. Remember, acting promptly and following the correct procedures will improve your chances of a successful outcome.
Checking If You Can Claim Constructive Dismissal
Before you begin a constructive dismissal claim, it’s crucial to check whether you meet the eligibility criteria set out under UK employment law. Not everyone who leaves their job because of workplace issues will be able to claim constructive dismissal, so understanding these requirements can save you time and help you make informed decisions about your next steps.
Who Can Claim Constructive Dismissal?
To be eligible to claim constructive dismissal, you must usually be an employee (not a worker or self-employed) and have resigned because of a serious breach of contract by your employer. This breach could include things like sudden demotion, non-payment of wages, unsafe working conditions, or fundamental changes to your job without your agreement. The breach must be serious enough that it justifies your decision to resign.
Employment Length Requirements
In most cases, you need to have worked for your employer for at least two years before you can make a constructive dismissal claim at an employment tribunal. There are some exceptions, such as if your case involves discrimination or certain types of automatic unfair dismissal (for example, related to whistleblowing or health and safety issues), where the two-year rule may not apply.
To understand more about general eligibility for unfair dismissal claims, including exceptions to the two-year rule, see Am I Eligible to Claim Unfair Dismissal?
Other Important Conditions
- You must resign promptly: If you continue working for too long after the breach, it may be seen as accepting the new situation, which can weaken your claim.
- You must clearly state your reasons: When resigning, it’s best to explain in writing that you are leaving because of your employer’s serious breach of contract.
- Settlement agreements: If you sign a settlement agreement when leaving your job, you will not be able to pursue a constructive dismissal claim at an employment tribunal.
For a more detailed explanation of the rules and examples of what counts as a serious breach, you can read the Constructive Dismissal Claim Eligibility Criteria provided by Acas.
Why Confirming Eligibility Matters
Claiming constructive dismissal can be a complex process and is often difficult to prove. Employment tribunals require clear evidence that your employer’s actions forced you to resign. If you do not meet the eligibility criteria, your claim is likely to be rejected, which could result in wasted time and unnecessary stress.
Before taking any action, it’s wise to review the relevant laws and seek advice. You can also explore more about the legal principles involved in Dismissal Law in the UK: An Overview, which includes a section on constructive dismissal.
Checking your eligibility first ensures you have the best chance of making a successful claim and helps you understand your rights and options if you believe you have been forced to leave your job unfairly.
How to Make a Constructive Dismissal Claim
Making a constructive dismissal claim involves a clear process, and it’s important to follow each step carefully to give your case the best chance of success. Here’s what you need to know:
1. Understand the Process
If you believe you’ve been forced to resign because of your employer’s conduct, you may be able to claim constructive dismissal at an employment tribunal. This means you’ll need to show that your employer seriously breached your employment contract, making it impossible for you to continue working.
2. Early Conciliation with ACAS
Before you can file a claim with an employment tribunal, you must first notify Acas (the Advisory, Conciliation and Arbitration Service). This step is called early conciliation and is mandatory in most cases. During this process, an Acas conciliator will try to help you and your employer reach a settlement without going to tribunal. Taking part in ACAS Early Conciliation is free and confidential, and you can decide what information is shared with your employer.
If early conciliation does not resolve the dispute, Acas will provide you with a certificate, which you’ll need when submitting your tribunal claim.
3. Prepare Your Evidence
To support your constructive dismissal claim, you should gather as much relevant evidence as possible. This may include:
- Your employment contract and any staff handbooks or policies
- Written correspondence (emails, letters, messages) between you and your employer
- Notes from meetings or conversations about the issues you faced
- Witness statements from colleagues, if applicable
- A record of events leading up to your resignation, including dates and details of incidents
Having clear, organised evidence will strengthen your case and help demonstrate that your employer’s actions amounted to a serious breach of contract.
4. File Your Claim
Once you have completed early conciliation, you can submit your claim to an employment tribunal. You’ll need to provide details about your employment, the reasons for your resignation, and the evidence you have collected. For step-by-step guidance on the process, see How to File an Unfair Dismissal Claim, as the procedure for constructive dismissal is similar.
If you’re unsure whether your situation qualifies as constructive dismissal or if another type of claim might be more appropriate, you may also want to read about How to File a Wrongful Dismissal Claim.
5. Be Aware of Time Limits
Strict time limits apply to constructive dismissal claims. In most cases, you must start the Acas early conciliation process within three months less one day from the date you resigned. If you miss this deadline, your claim is likely to be rejected by the tribunal. It’s crucial to act quickly and keep track of all relevant dates.
By following these steps and ensuring you have the right evidence, you can give your constructive dismissal claim the best chance of success. For more detailed instructions and support, refer to the links above and make sure you understand each stage of the process before moving forward.
Compensation and Calculating Your Losses
When you make a successful claim for constructive dismissal, you may be entitled to various types of compensation. Understanding what you can claim for, and how these amounts are calculated, is an important step in preparing your case.
Types of Compensation You Can Claim
The compensation for constructive dismissal is broadly similar to that for unfair dismissal. It generally includes:
- Basic Award: This is calculated in a similar way to redundancy pay, based on your age, weekly pay (subject to a statutory cap), and length of service.
- Compensatory Award: This covers your actual financial losses resulting from the dismissal. Common examples include loss of earnings, lost benefits (such as pension contributions or bonuses), and any additional expenses directly related to your dismissal.
- Other Losses: In certain cases, you may be able to claim for loss of statutory rights, loss of future earnings, or injury to feelings (though the latter is more commonly awarded in discrimination claims).
For a more detailed breakdown of what you could claim, see Compensation for Unfair Dismissal, which also applies to constructive dismissal cases.
How Compensation Is Calculated
Your compensation will be based on the losses you have suffered as a result of being forced to resign. This includes:
- Loss of Earnings: The wages you would have earned had you not been constructively dismissed, minus any income you have received from new employment.
- Lost Benefits: This could include the value of lost pension contributions, health insurance, company car, or bonuses.
- Additional Expenses: Any reasonable costs you have incurred as a direct result of your dismissal, such as job search expenses or relocation costs.
The Employment Tribunal will expect you to do everything reasonable to reduce your losses (this is called “mitigation”), such as looking for new work as soon as possible.
Using a Schedule of Loss
A key part of your claim is preparing a document called a “schedule of loss.” This sets out, in detail, the compensation you are seeking and how you have calculated each amount. It helps the tribunal understand your claim and gives you a clear basis for negotiation or settlement.
You can use a Schedule of Loss Template for Unfair Dismissal Claims to organise your claim and ensure you include all relevant losses. For step-by-step guidance and an example, visit the Schedule of Loss Template provided by Citizens Advice.
Practical Tips
- Be thorough: List every financial loss you have suffered, and provide evidence where possible (such as payslips, P45, or benefit statements).
- Update your schedule: If your situation changes (for example, you find a new job), update your schedule of loss accordingly.
- Consider future losses: You can claim for future loss of earnings if it’s likely to take time to find similar employment.
For further information on how other types of dismissal claims are compensated, see the section on Compensation and Other Remedies in wrongful dismissal cases.
Additional Support After Dismissal
If you are struggling financially after leaving your job, you may be able to claim benefits after being sacked. This can help cover your living costs while you look for new work or while your claim is being resolved.
Preparing your compensation claim carefully can make a significant difference to the outcome of your case. Make sure to use the resources and templates available to you, and seek further advice if needed.
Tips for Increasing Your Chances of Success
When claiming constructive dismissal, taking the right steps can make a significant difference to the outcome of your case. Here are some practical tips to help you strengthen your claim and improve your chances of success:
Gather Strong Evidence and Document Everything
One of the most important things you can do is keep detailed records of everything that happens at work, especially if you believe your employer has breached your contract. Save emails, letters, meeting notes, and any relevant documents that show how you were treated. Write down dates, times, and details of incidents as soon as they happen. This evidence can be vital in proving your case at a later stage.
Follow Correct Procedures and Meet Deadlines
Before resigning, make sure you have tried to resolve the issue through your employer’s internal grievance procedure. This not only shows you acted reasonably but is often expected by employment tribunals. If you do decide to resign, state clearly in your resignation letter why you are leaving and how your employer’s actions forced your decision. Remember, you must start your claim within three months less one day from the date your employment ends, so act quickly to avoid missing the deadline.
Seek Legal Advice or Support
Constructive dismissal claims can be complex, and the law can be difficult to navigate alone. Consider consulting an employment law specialist or seeking support from a trade union. Professional advice can help you understand your rights, assess the strength of your case, and prepare the best possible claim.
Prepare for the Tribunal Hearing
If your case goes to an employment tribunal, preparation is key. Organise your evidence logically and be ready to explain clearly how your employer’s actions amounted to a serious breach of contract. Practice answering questions and presenting your side of the story confidently. Tribunals look for credible, consistent accounts backed up by evidence.
For more detailed strategies on building a strong case, see our guide on How to Win Your Unfair Dismissal Case. Many of the tips there also apply to constructive dismissal claims.
If you are unsure whether your situation is more like unfair dismissal or redundancy, you may also want to read about the steps to take if you believe your redundancy was unfair.
By following these tips and making sure you understand the legal process, you can put yourself in the strongest possible position to succeed with your constructive dismissal claim.
