What constructive dismissal actually means
It happens when an employer does something serious enough to break the trust at the heart of the working relationship, and the employee resigns in response. Think a significant unilateral change to someone's role or pay, a failure to deal with a genuine grievance, or a pattern of treatment that makes their position untenable.
The employee is effectively saying: you left me no choice but to leave. If a tribunal agrees, the resignation can be treated as a dismissal, and you may have to defend it as if you had dismissed them.
Treat any major change to someone's role, pay or treatment as something to handle carefully, not impose overnight.
The situations that most often trigger it
Common flashpoints include cutting hours or pay without agreement, demoting someone, ignoring a grievance, singling someone out, or letting bullying go unchecked. Rarely is it one dramatic act. More often it is a build-up that finally tips over.
The warning sign is usually there before the resignation: a grievance you haven't dealt with, a change someone is unhappy about, a situation that has been left to fester. That is the moment to act, not after they have walked.
If someone has an unresolved grievance or is unhappy about a change, deal with it now, before it becomes a resignation.
How to protect your business
You can make changes and manage people firmly. What protects you is doing it properly: consult before you change terms, deal with grievances promptly and fairly, and keep treating people reasonably even when the relationship is strained.
If you're already in a tense situation and worried a resignation is coming, get a clear read on it early. The right handling now is far cheaper than defending a claim later.
Consult before changing terms, deal with grievances promptly, and get advice early if you sense a resignation coming.
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Key takeaways
- Constructive dismissal is when an employee resigns over how they were treated and claims it as a dismissal.
- It usually builds up over time, an unresolved grievance or an imposed change, rather than one single act.
- Consult on changes, handle grievances promptly, and keep treating people reasonably.
- Sense a resignation brewing? Take the free Situation Check for a clear read on the risk and next step.
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