When an employee resigns

Resignations where the employee may claim constructive dismissal

An employee may be entitled to resign if you breach a fundamental term of their employment contract. This is known as constructive dismissal.

Breaches of contract that may give rise to unfair constructive dismissal claims might include anything which makes it impossible or intolerable for the employee to continue doing the job.

Examples include:

• unilaterally cutting - or trying to cut - an employee's wages or salary or other contractual benefits
• transferring an employee to a different job or location in the absence of any stated or implied contractual right to do so
• failing to provide a safe place of work
• breach of the obligation of mutual trust and confidence implied in every employment contract

For this reason you should always seek the employee's prior written agreement when you propose to change their employment contract. For more details see our guide on how to change an employee's terms of employment.

As of 1 October 2004, employees must normally begin the statutory grievance procedure before bringing an unfair constructive dismissal claim or the complaint will be rejected. If the procedure is begun but - due to a failure by the employee - not completed, any compensation awarded by the tribunal for unfair dismissal will be reduced.

Review statutory dispute resolution procedures at the DTI website.

Subjects covered in this guide

• Introduction
• Check if the resignation is necessary
• Checklist: what to do when an employee resigns
• Finding out why people leave
• Resignations in the heat of the moment
• Resignations where the employee may claim constructive dismissal
• Resignations connected with a business transfer

 

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