{"id":127296,"date":"2022-11-15T10:54:31","date_gmt":"2022-11-15T10:54:31","guid":{"rendered":"http:\/\/chrisw92.sg-host.com\/?p=127296"},"modified":"2023-08-23T14:41:55","modified_gmt":"2023-08-23T13:41:55","slug":"constructive-dismissal","status":"publish","type":"post","link":"https:\/\/realbusiness.co.uk\/constructive-dismissal","title":{"rendered":"Constructive dismissal &#8211; Everything you need to know"},"content":{"rendered":"<div class='booster-block booster-read-block'><\/div><p><strong>Accusations of constructive dismissal are something most leaders and managers wish to avoid. A successful constructive dismissal claim means that you have been in breach of an employment contract and this can be both time-consuming and extremely costly. Employment tribunal fees have been banned since 2017 making it even more imperative employers are aware of the potential claims that could be lodged against them.<\/strong><\/p>\n<p>A contract of employment is an agreement between an employer and employee, setting up the foundations for a mutual relationship of sorts. It regulates the behaviour of staff and sets out a disciplinary code, but also places expectations and obligations on the employer.<\/p>\n<blockquote><p>It&#8217;s legally binding. So making changes without the consent of the employee, for example, is a risky move. As is ignoring the expressed and implied terms agreed to in the contract.<\/p><\/blockquote>\n<p>When you breach that contract, you could find yourself face-to-face with a constructive dismissal claim if the breach is so serious that the employee can argue that you have effectively forced there dismissal or resignation. If they&#8217;re successful in their claims, they won&#8217;t be held to the post-termination restrictions on a contract.<\/p>\n<h2>What are the grounds for constructive dismissal?<\/h2>\n<p>Contrary to belief, constructive dismissal has nothing to do with an employer behaving unreasonably. There needs to be a breach of expressed contractual terms or the implied terms of trust and confidence and they need to be able to prove it was a fundamental breach rather than a minor one.<\/p>\n<p>More often than not, it involves a continuing pattern of behaviour or incidents. According to employment law business Landau Law, <a href=\"http:\/\/www.landaulaw.co.uk\/constructive-dismissal\/\">there is something called &#8220;the last straw&#8221;<\/a>.<\/p>\n<p>&#8220;It&#8217;s the last act the cherry on top that leads an employee to resign,&#8221; the company says. &#8220;It must be a part of previous acts so that together they all add up to a breach of trust and confidence.&#8221;<\/p>\n<blockquote><p>Not all contracts are the same though, so the severity of your conduct or breach comes down to each individual circumstance.<\/p><\/blockquote>\n<p>This makes it tricky to mitigate against a constructive dismissal claim. But there are a few universal no-nos that hold strong on any contract.<\/p>\n<p>Here are examples of breaches that entitle employees to constructive dismissal:<\/p>\n<ul>\n<li>\u00a0When you put someone&#8217;s safety at risk,<\/li>\n<li>\u00a0Acknowledging a build-up of stress yet failing to actually address it,<\/li>\n<li>Completely changing the nature of a job role,<\/li>\n<li>Inflicting a sudden demotion,<\/li>\n<li>Bullying and discriminating against an employee,<\/li>\n<li>Changing hours or place of work without an agreement,<\/li>\n<li>Refusing to look into any grievances an employee may have,<\/li>\n<li>Giving out far more work than is reasonable,<\/li>\n<li>Paying incorrect wages on a consistent basis,<\/li>\n<li>Unfounded allegations of <a href=\"http:\/\/realbusiness.co.uk\/\" data-wpil=\"url\">poor performance<\/a>,<\/li>\n<li>The threat of a salary reduction,<\/li>\n<li>Humiliating staff in public.<\/li>\n<\/ul>\n<p>Of course, if an employee hasn&#8217;t made the effort to resolve the matter, then it becomes far more difficult for them to make a constructive dismissal claim.<\/p>\n<h2>What does a typical constructive dismissal resignation letter look like<\/h2>\n<p>It will be made clear from the get-go that you have a constructive dismissal resignation on your hands. They normally come as grievance letters first, and its contents and tone will indicate what&#8217;s coming.<\/p>\n<p>For a better idea of what to look out for, we hunted down templates written by law experts and stumbled across this one <a href=\"https:\/\/www.monacosolicitors.co.uk\/constructive-dismissal\/\">prepped by Monaco Solicitors<\/a>.<\/p>\n<p>In this particular scenario, the employee is bringing up a formal grievance, letting you know they have grounds for constructive dismissal. They expect things to be rectified.<\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone wp-image-127520 size-full lazyload\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/yH5BAEAAAAALAAAAAABAAEAAAIBRAA7\" data-src=\"http:\/\/realbusiness.co.uk\/wp-content\/uploads\/2018\/11\/Screen-Shot-2018-11-14-at-18.10.58.png\" alt=\"\" width=\"732\" height=\"669\" \/><noscript><img decoding=\"async\" class=\"alignnone wp-image-127520 size-full lazyload\" src=\"http:\/\/realbusiness.co.uk\/wp-content\/uploads\/2018\/11\/Screen-Shot-2018-11-14-at-18.10.58.png\" alt=\"\" width=\"732\" height=\"669\" srcset=\"https:\/\/realbusiness.co.uk\/wp-content\/uploads\/2018\/11\/Screen-Shot-2018-11-14-at-18.10.58.png 732w, https:\/\/realbusiness.co.uk\/wp-content\/uploads\/2018\/11\/Screen-Shot-2018-11-14-at-18.10.58-300x274.png 300w\" sizes=\"(max-width: 732px) 100vw, 732px\" \/><\/noscript><\/p>\n<p>The letter goes down a full ten bullet points. It&#8217;s the last straw kicking in, and employees will need to show they have a leg stand on.<\/p>\n<p>But it&#8217;s the end of this particular grievance note that suggests a claim could be in order.<\/p>\n<p><img decoding=\"async\" class=\"alignnone wp-image-127521 size-full lazyload\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/yH5BAEAAAAALAAAAAABAAEAAAIBRAA7\" data-src=\"http:\/\/realbusiness.co.uk\/wp-content\/uploads\/2018\/11\/Screen-Shot-2018-11-14-at-18.10.29.png\" alt=\"\" width=\"741\" height=\"725\" \/><noscript><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-127521 size-full lazyload\" src=\"http:\/\/realbusiness.co.uk\/wp-content\/uploads\/2018\/11\/Screen-Shot-2018-11-14-at-18.10.29.png\" alt=\"\" width=\"741\" height=\"725\" srcset=\"https:\/\/realbusiness.co.uk\/wp-content\/uploads\/2018\/11\/Screen-Shot-2018-11-14-at-18.10.29.png 741w, https:\/\/realbusiness.co.uk\/wp-content\/uploads\/2018\/11\/Screen-Shot-2018-11-14-at-18.10.29-300x294.png 300w\" sizes=\"(max-width: 741px) 100vw, 741px\" \/><\/noscript><\/p>\n<p>Leaving a resignation for too long, however, could be seen as an act of waiving the breach according to Landau Law. &#8220;This can happen where there is a long delay in lodging a grievance or resigning.<\/p>\n<p>&#8220;This could especially happen if staff members are on long-term sickness, where they are more likely to delay taking any steps in relation to a breach by the employer. A waiver could also be anything else which signals an acceptance of the breach (such as an email which suggests being happy with changes to the contract).&#8221;<\/p>\n<p>Essentially, if employees stay too long after a breach, it&#8217;s considered acceptable and they will no longer have grounds for constructive dismissal.<\/p>\n<h2>What is the constructive dismissal qualifying period<\/h2>\n<p>As is the case with unfair dismissal, someone has to be working under your employ continuously for two years before they can raise a constructive dismissal claim.<\/p>\n<p>Without those two years, an employer could easily dismiss such claims even if they genuinely did wrong. They would unlikely face legal repercussions, though there would be a hit to reputation, which could be equally as damaging to a business.<\/p>\n<p>There are exceptions though.<\/p>\n<p>If you victimise an employee for revealing malpractice, if discrimination is involved or if there has been a direct and blatantly obvious breach of contract, the qualifying period is thrown out the door.<\/p>\n<h2>How to fend against constructive dismissal claims<\/h2>\n<p>As such claims require evidence, it can be tricky for an employee to prove but it is better to be safe than sorry.<\/p>\n<blockquote><p>For starters, it doesn&#8217;t mean you&#8217;re never allowed to change your T&amp;Cs. Doing so is perfectly acceptable under employment law. What matters is that you do it properly and legally.<\/p><\/blockquote>\n<p>Consider these points:<\/p>\n<ul>\n<li>Always understand the terms in your contracts and do not take any steps that violate them.<\/li>\n<li>If you want to change terms in the contract, you will need to consult with the employee first. If you fail to do this, it may be considered a breach of contract.<\/li>\n<li>All good managers should be trained to spot workplace problems and step in to prevent them from escalating.<\/li>\n<li>Encourage employees to raise issues early and if necessary even a formal grievance if they have a complaint. By dealing with problems early and openly you lessen the risks of formal challenges.<\/li>\n<\/ul>\n<p>Employees in the habit of treating their staff well and listening to grievances will find it easier to prevent constructive dismissal or other legal claims.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Constructive dismissal has raised its head of late, piquing everyone&#8217;s curiosity as to what it is. Here we lay out the fundamentals of constructive dismissal claims and how you can protect your company.<\/p>\n","protected":false},"author":25700,"featured_media":127519,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"footnotes":""},"categories":[2065],"tags":[11185,4758],"class_list":["post-127296","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-law-compliance","tag-constructive-dismissal","tag-employment-contract"],"views":2689,"_links":{"self":[{"href":"https:\/\/realbusiness.co.uk\/wp-json\/wp\/v2\/posts\/127296","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/realbusiness.co.uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/realbusiness.co.uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/realbusiness.co.uk\/wp-json\/wp\/v2\/users\/25700"}],"replies":[{"embeddable":true,"href":"https:\/\/realbusiness.co.uk\/wp-json\/wp\/v2\/comments?post=127296"}],"version-history":[{"count":0,"href":"https:\/\/realbusiness.co.uk\/wp-json\/wp\/v2\/posts\/127296\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/realbusiness.co.uk\/wp-json\/wp\/v2\/media\/127519"}],"wp:attachment":[{"href":"https:\/\/realbusiness.co.uk\/wp-json\/wp\/v2\/media?parent=127296"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/realbusiness.co.uk\/wp-json\/wp\/v2\/categories?post=127296"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/realbusiness.co.uk\/wp-json\/wp\/v2\/tags?post=127296"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}