Constructive dismissal

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What's it regarding?

If an employer acts in a sufficiently serious way, an employee might consider resigning. A repudiatory breach entitles the employee to regard the contract as being at an end. This would be constructive dismissal. Examples include imposing a pay cut, or failing to provide a safe working environment.

Mutual Trust and Confidence

Employees often rely on the implied duty of trust and confidence. In common law, the duty was formulated in the following way:

“The employer shall not without reasonable and proper cause conduct itself in a manner calculated and likely to destroy or seriously damage the relationship of confidence and trust between employer and employee.”

Mahmud v Bank of Credit and Commerce International [1997] ICR 606,

What if the employment relationship has been poor for some time? In those cases, it may be possible to show that a series of less serious breaches amounts to a repudiatory breach of contract.

Not all constructive dismissals are unfair. For example, an employer may be able to justify the imposition of a pay cut if it is necessary for the survival of the business.

As constructive unfair dismissal is simply a species of unfair dismissal, the remedies available for successful claimants are the same.

I’m thinking of resigning because my job is so bad. What do I do?

Each case of constructive dismissal must be assessed on the facts of the case. Here at Levins we would invite you to an initial consultation to establish the facts of your case. Only after that can we advise whether you have a good case or not. If we did want to take on your case, please see our page on Bringing an Employment Claim for more details.

For more information, read our article on constructive dismissal to learn more about constructive dismissal, or phone us on 0151 480 5777 and speak to Jon Heath in our employment team.