What is constructive dismissal?

Constructive dismissal is a form of unfair dismissal where the employee resigns in response to a serious breach of contract by the employer. It is governed by Section 95(1)(c) of the Employment Rights Act 1996. For a constructive dismissal claim to succeed, the employee must show three things: first, that the employer committed a significant breach of the employment contract or a fundamental implied term (such as the implied duty of trust and confidence); second, that the employee resigned in response to that breach and not for some other reason; and third, that the employee did not delay so long in resigning that they can be taken to have affirmed the contract and waived the breach. Common examples of employer conduct that can give rise to constructive dismissal include: unlawfully reducing the employee's pay, a serious or sustained course of bullying or harassment, fundamentally changing the employee's role without agreement, unfairly excluding the employee from the workplace, or failing to deal with a grievance relating to a serious matter. The breach does not have to be a single dramatic act — a course of conduct amounting to cumulative breaches can also be enough. An employee bringing a constructive dismissal claim still needs two years' qualifying service (unless the underlying reason is automatically unfair), must contact ACAS before filing the tribunal claim, and must present the claim within three months less a day of their last day of employment.