Constructive dismissal

Produced by Tolley in partnership with Emilie Bennetts at Charles Russell Speechlys LLP
Constructive dismissal

The following Employment Tax guidance note Produced by Tolley in partnership with Emilie Bennetts at Charles Russell Speechlys LLP provides comprehensive and up to date tax information covering:

  • Constructive dismissal
  • Employer's conduct
  • Repeated minor breaches of contract
  • Employee must accept the breach and resign in response
  • Employee must act quickly

A constructive dismissal will occur in a situation where the employee resigns because a sufficiently serious breach of the contract by the employer entitles them to leave without giving notice. The employee may bring a claim for unfair dismissal (if he has the requisite length of service) even though he chose to end the contract by resigning. The resignation is considered a dismissal because it occurred in circumstances in which the employer's breach of contract made it almost impossible for the employee to stay at work. Western Excavating (ECC) Ltd v Sharp [1978] 1 All ER 713

Employer's conduct

The employer's breach of contract must be very serious. It must be shown that the employer has breached a fundamental express or implied term of the employee's contract. It is not sufficient that the employer has behaved unreasonably; the behaviour must be so serious that the employee is justified in resigning.

Employees will often

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