Constructive Dismissal

Constructive Dismissal

If your employer's conduct has left you feeling you have no real choice but to resign, you may have legal claims relating to constructive dismissal. For instance, you could have claims for constructive unfair dismissal.

If you are considering taking action, get legal advice before resigning. Leaving too soon, or waiting too long, might affect your legal rights and the remedies which are available to you.

Constructive dismissal-related claims can be challenging, and you may have several legal remedies to pursue. Our constructive dismissal lawyers can assess your situation, explain your options and claims and explore whether the dispute can be resolved without formal proceedings where possible.

What Counts as Constructive Dismissal?

Constructive dismissal (put simply) occurs when an employee resigns because their employer has committed a fundamental breach of an important term of the employment contract.

In particular, the breach may relate to an express term — such as pay — or an implied term, such as the implied term of mutual trust and confidence that exists in an employment contract.

Examples of such conduct may include fundamentally changing an employee's duties without proper authority, failing to pay contractual entitlements, or behaviour that otherwise causes the employment relationship to break down.

A serious breach of contract that entitles the employee to treat it as terminated is referred to as a 'repudiatory breach'. Where an employer commits this type of breach, an employee may be entitled to treat themselves as having been dismissed and resign.

To succeed in a constructive dismissal claim, an employee will generally need to show that: the employer committed a repudiatory breach of the employment contract; the employee resigned in response to that breach; and the employee did not delay too long prior to resigning, in circumstances which could amount to affirming the contract.

A constructive dismissal claim may arise from a single serious incident or a series of incidents which (taken together) amount to a repudiatory breach. Under the 'last straw' principle, a final incident may contribute to an overall course of conduct even if it would not, by itself, amount to a breach of contract.

Constructive dismissal can also give rise to unfair dismissal and wrongful dismissal claims — although whether a dismissal is unfair is a separate legal question and depends upon the relevant circumstances. But you should note that even where a constructive dismissal is proven, this will not necessarily amount to an unfair dismissal. This is a complex point, and our legal team can advise you on this issue and how it impacts your specific claims.

Do I Have a Constructive Dismissal Claim?

Whether you have a constructive dismissal claim will depend upon the relevant facts of your case. Our employment lawyers can assess your position by reviewing your employment contract, your employer's conduct, your response and the evidence.

We will review whether your employer has breached an express or implied term of your employment contract and whether that breach is serious enough to justify your resignation and give rise to a constructive dismissal-related claim.

Before You Resign

If you are considering a constructive dismissal claim, it is important to seek legal advice before resigning. Resigning is a significant decision that can have a range of legal, practical and financial implications.

Our employment lawyers can advise you specifically on these matters and the appropriate options for your case.

Note that a failure to raise a grievance will not necessarily prevent you from pursuing a claim. However (where the Acas Code applies) an unreasonable failure to follow it may affect any compensation awarded to you.

Meeting Time Limits

Constructive dismissal claims are subject to strict time limits. Prior to bringing a claim in the Employment Tribunal, you will usually need to notify Acas and begin what is known as 'the Early Conciliation' process. This can impact the time limits for your claim.

It is important to be aware of significant changes impacting claims. For most Employment Tribunal claims where the relevant date falls on or after 1 October 2026, the usual time limit will be six months rather than three months. This is due to changes under the Employment Rights Act 2025.

It is important to identify the relevant deadline at an early stage. We will take your instructions and advise you on the specific deadline that applies to your case (including the effect of Acas Early Conciliation) and help to ensure that your claim is lodged in good time.

Understanding Compensation

If you establish constructive dismissal, then the remedies available will depend upon the particular claim (or claims) arising from that dismissal. It will be up to the Employment Tribunal to determine the losses you have suffered.

Depending upon the circumstances, you may be entitled to compensation for wrongful dismissal and unfair dismissal.

For wrongful dismissal, compensation is intended to put you in the financial position you would have been in had your employment ended in accordance with your contract. This will often include the net salary and benefits you would have received during your notice period.

If your constructive dismissal is also found to be unfair, you may be entitled to a basic award and a compensatory award for financial losses resulting from the dismissal (which are subject to specific statutory rules and limits).

Our employment lawyers can assess the potential value and advise on the compensation you may be entitled to recover for your specific claim or claims.

How We Can Help

Our employment law team can assess the strength of your claim, advise on grievances and resignation, negotiate settlement agreements where possible and represent you throughout Acas Early Conciliation and Employment Tribunal proceedings.

We can also advise on the potential value of your claim, the compensation you may be entitled to recover and the options which may be available to help resolve the dispute.

We also act for employers responding to constructive dismissal allegations from employees.

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