Constructive Dismissal: The Facts

Employment law can be extremely complicated, but all SMEs should make themselves aware of the facts surrounding constructive dismissal if they want to avoid forking out for damages and a dent in their reputation.

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What is constructive dismissal?

Constructive dismissal occurs when an employee resigns from their position due to their employer seriously breaching their contract of employment. If this is the case, the employee has the right to make a constructive dismissal claim against their employer.

Employees who would be eligible to make such a claim may have experienced the following:

  • Bullying or harassment at work which was not stopped by the employer
  • Unreasonable changes made to the hours or location of their work
  • Demotion
  • Refusal of pay

How is it different to unfair dismissal or wrongful dismissal?

Constructive dismissal has one substantial difference – the employee resigns as a last resort, rather than being sacked by their employer.

Constructive dismissal comes about when an employee is essentially forced out of their job against their will due to the behaviour or conduct of a colleague, superior or entire company.

Like wrongful dismissal, constructive dismissal is centred around contractual breaches: it is important to note that the employment contract must … Read More