Back to guidesEmployment Law Guide

Constructive Dismissal – Your Rights, What Counts as a Fundamental Breach, and How to Take Action

Constructive dismissal happens when your employer's behaviour becomes so unreasonable, hostile, or unlawful that you feel you have no choice but to resign. In these cases, the law may treat your resignation as a dismissal.

What Is Constructive Dismissal?

Constructive dismissal occurs when your employer commits a fundamental breach of contract, and you resign in response to that breach. A fundamental breach is behaviour so serious that it destroys the trust and confidence between you and your employer.

Examples of Behaviour That May Amount to Constructive Dismissal

1. Bullying or Harassment

If your employer ignores or contributes to bullying, this may be a breach of their duty of care.

2. Discrimination

Unlawful discrimination based on protected characteristics can justify resignation.

3. Unfair Disciplinary or Performance Processes

If your employer uses:

  • Biased investigations
  • Pre determined outcomes
  • Retaliatory processes

…this may be a breach of trust.

4. Sudden or Unreasonable Contract Changes

Such as:

  • Pay cuts
  • Reduced hours
  • Demotion
  • Forced relocation
  • Changes to duties

Without consultation or agreement.

5. Ignoring Grievances

If your employer refuses to investigate serious concerns, this may be a breach.

6. Unsafe Working Conditions

Failing to protect your health and safety can justify resignation.

7. Victimisation

Punishing you for raising concerns, whistleblowing, or supporting a colleague's complaint.

Your Rights If You Believe You've Been Forced to Resign

You may have the right to claim constructive dismissal if:

  • Your employer committed a serious breach
  • You resigned because of that breach
  • You did not delay too long before resigning
  • You have 2+ years' service (unless the breach is automatically unfair)

Automatically unfair reasons include:

  • Whistleblowing
  • Health & safety concerns
  • Trade union activity
  • Pregnancy or maternity
  • Discrimination

What Counts as a Fundamental Breach of Contract?

A breach may be fundamental if your employer:

  • Breaks an express term (e.g., pay, hours, duties)
  • Breaks an implied term (e.g., trust and confidence)
  • Acts in a way no reasonable employer would
  • Fails to protect you from harm
  • Treats you unfairly or inconsistently

The breach must be serious enough that continuing employment is unreasonable.

How to Protect Yourself Before Resigning

Resigning too quickly can weaken your case. Before resigning, consider:

1. Raise a Formal Grievance

This shows you tried to resolve the issue internally.

2. Keep Detailed Evidence

Record:

  • Dates
  • Times
  • What happened
  • Witnesses
  • Emails and messages

3. Follow Up in Writing

Confirm conversations and concerns in writing.

4. Request Reasonable Adjustments (If Relevant)

Especially for disability related issues.

5. Seek Advice Early

Constructive dismissal cases are complex — early guidance is crucial.

How to Resign If You Decide to Leave

If you choose to resign, you should:

  • State that you are resigning due to a fundamental breach of contract
  • Explain the breach clearly
  • Resign promptly after the breach
  • Keep a copy of your resignation letter

Compensation for Constructive Dismissal

If successful, you may receive:

Basic Award

Compensatory Award, covering:

  • Lost earnings
  • Loss of benefits
  • Future loss of earnings
  • Pension loss
  • Injury to feelings (if discrimination involved)

Constructive Dismissal FAQs

  • You must not wait too long before resigning
  • 2 years' service is not needed for automatically unfair or discriminatory breaches
  • You can claim if resignation was caused by employer-driven stress
  • Being pressured or sidelined may amount to constructive dismissal

Frequently Asked Questions

You must not wait too long — otherwise, it may look like you accepted the breach.

constructive-dismissal

Need Support With Constructive Dismissal?

Constructive dismissal is one of the most complex areas of employment law. With the right support, you can protect your rights, your income, and your future.

Get Confidential Advice