Constructive unfair dismissal is where the employee resigns in response to a fundamental breach of contract by the employer. The term of the contract breached can either be an express term (e.g. pay) or an implied term (e.g. duty of mutual trust and confidence). To bring such a claim an employee must have one year’s service. The way this claim is formulated means that it is able to cover a great diversity of situations. It is therefore important to understand the nature of the employee’s contract and ensure that any measures taken in connection with the employee do not amount to a fundamental breach of contract.
If you are intending on taking action such as re-organisations, pay cuts redundancies etc which if not handled properly could give rise to a constructive unfair dismissal claim or if a claim has already been brought, then please Contact Us for an initial free consultation.