Constructive dismissal is one of the most misunderstood areas of employment law. Many employees feel forced to leave their job because of how they are treated, but are unsure whether resigning means they lose their legal rights. In reality, constructive dismissal can give rise to an unfair dismissal claim, but only in specific circumstances and where strict legal tests are met.
At Penerley Solicitors, we regularly advise employees in London who feel they have no option but to resign due to their employer’s conduct. Understanding what amounts to constructive dismissal and whether you have a viable claim is essential before taking any action.
What constructive dismissal means in law
Constructive dismissal occurs where an employee resigns in response to a serious breach of contract by their employer. The law treats the resignation as a dismissal because the employer’s conduct has effectively brought the employment relationship to an end.
The breach must be fundamental. This means it goes to the root of the employment contract and makes it unreasonable for the employee to continue working. Examples can include a failure to pay wages, bullying or harassment, unilateral changes to contractual terms, or a complete breakdown of trust and confidence.
Importantly, constructive dismissal is not about whether the employer intended to force the employee out. What matters is whether their actions or failures were serious enough to justify resignation.
To succeed with a claim, an employee must also resign promptly in response to the breach. Continuing to work for too long after the issue arises may be seen as accepting the employer’s conduct, which can undermine a claim.
Common situations that lead to constructive dismissal claims
Constructive dismissal claims often arise from a pattern of behaviour rather than a single incident. However, a one off act can be sufficient if it is serious enough.
Common scenarios include:
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Persistent bullying, harassment, or discriminatory treatment
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Non payment or repeated late payment of salary
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Significant changes to duties, hours, or pay without agreement
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Failure to address grievances or complaints properly
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Undermining an employee’s role or authority
In many cases, employees raise concerns internally before resigning. While this is often sensible, it is not always required. If the breach is severe, an employee may be entitled to resign without following a grievance process. However, failing to raise issues beforehand can affect compensation, so early legal advice is crucial.
Do you have a valid constructive dismissal claim?
Not every difficult or unpleasant working situation will amount to constructive dismissal. The legal threshold is high, and tribunals will carefully assess the facts.
To bring a successful claim, an employee must usually show that:
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There was a fundamental breach of contract by the employer
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The employee resigned because of that breach
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The resignation happened without unreasonable delay
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The employee did not affirm the contract after the breach
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The employee has the required length of service
In most cases, an employee must have at least two years of continuous service to bring an unfair dismissal claim. There are exceptions where the dismissal is linked to discrimination or other automatically unfair reasons, but these require careful analysis.
Time limits are also strict. A claim must normally be brought within three months less one day from the date employment ends. Missing this deadline can mean losing the right to claim altogether.
Because constructive dismissal claims are complex and fact sensitive, tribunals scrutinise them closely. Evidence such as emails, grievance correspondence, and witness statements can be decisive.
Why early legal advice matters
Resigning without advice can be risky. Many employees leave their job believing they have been constructively dismissed, only to discover later that the legal test is not met.
Early advice allows you to assess whether your employer’s conduct amounts to a fundamental breach and whether resignation is the right step. In some cases, remaining in employment while pursuing internal resolution or negotiating an exit may lead to a better outcome.
At Penerley Solicitors, we help clients weigh the risks, understand their options, and protect their position. Where resignation is appropriate, we advise on how to do so in a way that preserves the strongest possible claim.
How Penerley Solicitors can help
Constructive dismissal claims are legally demanding and emotionally challenging. Whether you are experiencing serious issues at work or are considering resignation, specialist advice can make a significant difference.
Penerley Solicitors advises employees across London on constructive dismissal, unfair dismissal, workplace disputes, and employment tribunal claims. We provide clear, practical advice tailored to your situation and focused on achieving the best possible outcome.
If you believe you may have been constructively dismissed or are unsure whether you have a claim, contact Penerley Solicitors today to arrange a confidential consultation and discuss your options.
