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Constructive Dismissal Claims
Constructive dismissal occurs when an employee resigns due to intolerable working conditions created by their employer or fundamental changes to their contract, meaning that their employment has become untenable.
Employees facing constructive dismissal may feel overwhelmed and unsure of their legal rights. Equally, employers may feel that an employee has wrongfully submitted a constructive dismissal claim against them, leaving them in a position where legal expertise is required.
At Bermans, we specialise in constructive dismissal claims and can offer expert guidance and representation to help employees and employers navigate these challenging situations.
What Are the Key Elements of a Constructive Dismissal?
To prove constructive dismissal, the following elements must be established:
- Intolerable Working Conditions: The working environment must be unusually adverse, making it impossible for a reasonable employee to continue working.
- Employer’s Intent or Knowledge: The employer must have intended to force the resignation or had actual knowledge of the intolerable conditions.
- Changes in terms and conditions: A change in the employee’s terms which amounts to a fundamental breach of contract.
Why you may resign
Some indicators that you might be experiencing constructive dismissal include:
- Hostile Work Environment: Persistent harassment or discrimination can create a toxic atmosphere, making it difficult for an employee to perform their duties effectively. This may include verbal abuse, bullying, or prejudicial treatment based on race, gender, or other protected characteristics.
- Significant Changes to Job Role: Unreasonable alterations to your duties or responsibilities can leave you feeling undervalued and out of place. For example, if an employer demotes an employee without a valid reason, removes key responsibilities that they were hired for, or reassigns tasks that are far below their qualifications and experience, this can be a clear sign of constructive dismissal.
- Reduction in Salary or Benefits: Unjustified cuts to your pay or benefits can significantly impact your livelihood. If an employer reduces an employee’s salary, eliminates bonuses or commissions, or drastically changes their work schedule without prior agreement, it can create financial strain and insecurity, compelling the employee to leave the job.
Who initiates constructive dismissal claims?
In a constructive dismissal claim, it is the employee who initiates the process. This often involves submitting a resignation letter that clearly outlines the intolerable working conditions or the changes to their contractual terms. Subsequently, the employee may pursue legal action to seek compensation for the unlawful termination.
Is there a minimum employment period for constructive dismissal?
The minimum employment period required before an employee can claim for constructive unfair dismissal in the employment tribunal is 2 years of continuous employment. However, there can be exceptions depending on the circumstances
It’s vital to consult with our employment law specialists to understand all rights and options fully.
What Steps Should You Take if I Experience a Constructive Dismissal?
- Document Everything: Keep detailed records of incidents and changes in your work environment. This includes emails, memos, performance reviews, and any other relevant communications. Documentation is crucial for building a strong case.
- Seek Legal Advice: Consult with our employment law specialists to understand your rights and options. An experienced solicitor can help you assess the strength of your case and guide you through complex legal processes.
- File a Complaint:
- Internal Grievance: Before resigning, consider filing an internal grievance with your employer. This gives your employer a chance to address the issues and may strengthen your case if you later decide to claim constructive dismissal.
- ACAS Early Conciliation: If the internal grievance does not resolve the issue, you can initiate early conciliation through the Advisory, Conciliation and Arbitration Service (ACAS). This is a mandatory step before you can take your case to an employment tribunal.
- Employment Tribunal: If conciliation fails, you can file a claim with an employment tribunal. You must do this within three months of your resignation.
What Are An Employer Potential Defences Against Constructive Dismissal Claims?
Employers may defend constructive dismissal claims by arguing that the conditions were not intolerable or that they were unaware of the adverse environment.
- Conditions Were Not Intolerable: The working environment was reasonable and not severe enough to justify resignation.
- Lack of Employer Knowledge: The employer was unaware of the adverse conditions because they were not reported or addressed.
- Reasonable Management Actions: Changes to the employee’s role or terms were legitimate business decisions and were permitted under the employment contract.
- Employee’s Acceptance: The employee continued working under the conditions for an extended period, implying acceptance.
- Mitigation of loss: The employee did not take reasonable steps to mitigate their losses, such as seeking alternative employment.
How Can Bermans Help?
Constructive dismissal is a serious issue that can significantly impact an employee’s career and well-being. If you believe you have been constructively dismissed, it is crucial to seek legal advice and understand your rights.
Our specialist employment law team provide personalised support to assess the validity of a constructive dismissal claim, gather the necessary evidence, and advocate for a party’s rights in negotiations or tribunal proceedings.
Whether you’re an employee or employer, with Bermans by your side you can have confidence that your constructive dismissal case will be dealt with professionally and effectively, ensuring that your rights and interests are thoroughly represented.
Contact Us
If you need advice regarding constructive dismissal, do not hesitate to contact us. Our experienced solicitors are here to provide the guidance and representation you need to seek justice and protect your rights. Contact us today for a confidential consultation.