Constructive Dismissal: A Practical Guide

Workplace issues can be stressful, but when conditions become intolerable, you may feel you have no option other than to resign. In some circumstances, the law recognises this as constructive dismissal.

If you are thinking about resigning because of serious problems at work—or you have already resigned due to unfair treatment—you may be able to bring a legal claim.

At Zavri Law, our employment law solicitors regularly advise individuals facing constructive dismissal situations. This guide explains what constructive dismissal is, how claims work, and what steps you should consider before making any decisions.

What Is Constructive Dismissal?

Constructive dismissal (also referred to as constructive unfair dismissal) occurs when an employee resigns because their employer has behaved so unreasonably that continuing to work is no longer possible.

This usually involves a serious breach of the employment contract by the employer.

Examples include situations where an employer:

Stops paying wages

Demotes you without justification

Makes major changes to your working hours or role without agreement

Discriminates against you

Allows bullying or harassment to continue

Breaks key terms of your employment contract

If your employer’s actions leave you feeling forced to resign, you may have grounds to bring a constructive dismissal claim. Speaking to an employment solicitor early can help you understand your position before taking action.

What Situations May Amount to Constructive Dismissal?

Not every difficult or unpleasant workplace issue will qualify as constructive dismissal. However, you may have a strong case if your employer:

Ignores bullying or harassment by colleagues

Demotes you unfairly

Fails to pay your wages or benefits

Makes drastic changes to your working conditions

Fails to provide a safe working environment

Withdraws contractual benefits without agreement

Prevents you from carrying out your role properly

If you have been employed for at least two years, these circumstances may support a constructive dismissal claim.

That said, constructive dismissal claims require strong evidence and careful handling. It is important to understand the risks before resigning.

What Should I Do Before Resigning?

If work problems are pushing you towards resignation, there are steps you should consider first:

1. Raise the Issue Informally

Sometimes issues can be resolved through a direct conversation with your employer or manager.

2. Submit a Formal Grievance

If informal discussions fail, you may wish to raise a formal grievance. This creates a written record and gives your employer an opportunity to resolve the problem.

3. Seek Legal Advice

If matters remain unresolved, speak to an employment solicitor before resigning. Resigning too quickly or incorrectly can weaken your claim.

If you do resign, your resignation letter should clearly explain that you are leaving because of your employer’s conduct.

Who Can Claim Constructive Dismissal?

In most cases, you can bring a constructive dismissal claim if:

• You are legally classed as an employee, and

• You have worked for your employer for at least two years

Exceptions to the Two-Year Rule

You may not need two years’ service if your resignation relates to:

Whistleblowing

Discrimination (e.g. pregnancy, disability, race, sex)

A fundamental breach of contract

Strict time limits apply, so early advice is crucial.

How Do I Make a Constructive Dismissal Claim?

If you believe you have been forced to resign unfairly, you must act quickly.

Time Limits

You have three months minus one day from:

• The date you resigned, or

• The end of your notice period (if notice was given)

ACAS Early Conciliation

Before making a tribunal claim, you must usually go through ACAS early conciliation. This process aims to resolve disputes without going to tribunal.

Employment Tribunal

If conciliation fails, a solicitor can help you prepare and submit a constructive dismissal claim to the employment tribunal.

What Must Be Proven?

To succeed in a constructive dismissal claim, you must show that:

Your employer committed a serious breach of contract

You resigned because of that breach

You did not delay unreasonably before resigning

Constructive dismissal claims are legally complex and not always successful, so professional advice is strongly recommended.

How Hard Is It to Prove Constructive Dismissal?

Constructive dismissal claims are challenging. Only a small percentage succeed at tribunal.

Common reasons claims fail include:

Insufficient evidence of a serious breach

Failure to raise a grievance first

Delaying too long before resigning, which may be seen as accepting the employer’s conduct

Careful preparation and legal guidance can significantly improve your position.

Can I Claim If I Signed a Settlement Agreement?

No. If you sign a legally valid settlement agreement, you usually waive your right to bring claims, including constructive dismissal, at the employment tribunal.

How Much Compensation Can You Get?

If your claim succeeds, compensation usually consists of:

A basic award

A compensatory award

Basic Award

Maximum: £19,120

Calculated using age, length of service, and weekly pay

The calculation typically includes:

1.5 weeks’ pay per year of service after age 41

1 week’s pay per year between ages 22–40

0.5 week’s pay per year under age 22

Weekly pay is capped (currently £643), excluding most overtime.

Compensatory Award

Covers financial losses after leaving employment

Maximum: one year’s salary or £105,707, whichever is lower

You are expected to actively look for new work and keep records of job search efforts.

Can You Claim Constructive Dismissal If You Were Fired?

Generally, no. Constructive dismissal applies where you resign due to your employer’s conduct.

If you were dismissed outright, you may instead have a claim for unfair dismissal, depending on the circumstances.

Get Help With a Constructive Dismissal Claim

At Zavri Law, our employment solicitors can:

Assess whether you have a viable claim

Advise you before resigning

Assist with grievances and negotiations

Represent you in settlement discussions or tribunal proceedings

Early advice can make a significant difference to your outcome.

Disclaimer

This content is provided for general information purposes only and does not constitute legal advice. Employment law is complex and depends on individual circumstances. You should seek professional legal advice before taking or refraining from any action.