Quick Take: Constructive dismissal occurs when you’re forced to resign because your employer has seriously breached your employment contract. It’s legally termed “constructive unfair dismissal” and allows you to claim compensation at an employment tribunal. You typically need two years’ continuous service (reducing to six months from January 2027), must resign in response to the breach, and have three months minus one day to lodge a claim. Average awards in 2023/24 were £13,749, but successful claims require strong evidence and careful timing.
If you’ve been pushed into a corner at work—facing impossible conditions, serious breaches of your contract, or treatment so poor you feel you have no choice but to leave—you may be experiencing constructive dismissal. Unlike being sacked outright, constructive dismissal happens when you resign, but only because your employer has made your working life untenable.
This isn’t about leaving because you’re unhappy or don’t get along with your manager. Constructive dismissal is a specific legal concept with strict tests, and understanding whether you have a valid claim can mean the difference between walking away with nothing and securing substantial compensation.
This guide explains everything you need to know about constructive dismissal in the UK: what it is, how to prove it, what compensation you can claim, and the step-by-step process for making a tribunal claim in 2026.
What Is Constructive Dismissal?
Constructive dismissal (legally called “constructive unfair dismissal”) occurs when an employee resigns because their employer has committed a serious breach of the employment contract—a breach so fundamental that it destroys the trust and confidence necessary for the employment relationship to continue.
According to Acas, you can make a constructive dismissal claim if you resign because you believe your employer has seriously breached your employment contract. The breach can be a single serious incident or a series of smaller incidents that, taken together, amount to a fundamental breach.
Key point: You resign; you are not dismissed. But the law treats your resignation as if you were dismissed because your employer’s conduct left you with no reasonable alternative.
The Legal Framework
Constructive dismissal claims fall under the Employment Rights Act 1996. To bring a claim to an employment tribunal, you usually need:
- Two years’ continuous employment with your employer (this will reduce to six months from 1 January 2027 under the Employment Rights Act 2025)
- To be legally classed as an employee (not just a worker or self-employed)
- To have resigned in response to your employer’s breach
- To lodge your claim within three months minus one day from your last day of employment (this will extend to six months minus one day from October 2026)
Exceptions: You don’t need two years’ service if your resignation is for an “automatically unfair” reason, such as discrimination, whistleblowing, pregnancy, or raising health and safety concerns.
How Constructive Dismissal Differs from Unfair Dismissal
| Constructive Dismissal | Unfair Dismissal |
|---|---|
| You resign due to employer’s breach | Employer terminates your employment |
| You must prove the breach was fundamental | Employer must prove dismissal was fair |
| Burden of proof is on you | Burden of proof is on employer |
| Usually requires 2 years’ service (6 months from 2027) | Usually requires 2 years’ service (6 months from 2027) |
| You choose the timing of resignation | Employer controls timing |
For more on unfair dismissal, see our complete guide to unfair dismissal in the UK.
The 5-Stage Test: Do You Have a Constructive Dismissal Claim?
The Employment Appeal Tribunal set out a clear five-stage test in the case of Marshall v McPherson Ltd (2025). Use this framework to assess whether you have a valid claim:
Stage 1: What was the employer’s most recent act or omission that caused you to resign?
Identify the specific “final straw”—the act or omission that triggered your resignation. This could be a single serious incident or the last in a series of events.
Examples:
- Being demoted without consultation
- A pay cut imposed unilaterally
- Being subjected to bullying or harassment
- A final refusal to address your grievance
Stage 2: Have you affirmed the contract since that act or omission?
If you continued working for a significant period after the breach without objecting, you may have “affirmed” the contract—essentially accepting the breach. This can destroy your claim.
What counts as affirmation:
- Continuing to work for weeks or months without complaint
- Accepting new terms without protest
- Failing to raise a grievance
What doesn’t count:
- Taking a few days to consider your position
- Working your notice period after resigning
- Trying to resolve the issue internally first
Stage 3: Was that act or omission, by itself, a fundamental breach of contract?
Ask: was the employer’s action so serious that it went to the heart of the contract? Did it destroy the mutual trust and confidence essential to the employment relationship?
Examples of fundamental breaches:
- Not paying your agreed salary
- Serious bullying or harassment
- Forcing you to work in unsafe conditions
- Demoting you without cause
Stage 4: If not, was it part of a series of acts that, cumulatively, amounted to a fundamental breach?
Even if the final act wasn’t serious on its own, it may be the “last straw” in a pattern of conduct that, taken together, breaches the contract.
Example: Your manager has repeatedly undermined you in meetings, excluded you from important emails, reduced your responsibilities, and ignored your complaints. The final act—being moved to a smaller office—might seem minor, but in context, it’s part of a cumulative breach.
Important: The “last straw” doesn’t need to be serious, but it must contribute to the breach. It can’t be trivial or unrelated.
Stage 5: Did you resign in response to that breach?
Your resignation must be a direct response to the breach, not for unrelated reasons (e.g., you found a better job, you wanted to relocate, or you were planning to leave anyway).
How to show this:
- State clearly in your resignation letter that you’re resigning due to the breach
- Resign promptly after the breach (delays weaken your case)
- Don’t give alternative reasons for leaving
Common Examples of Constructive Dismissal
Constructive dismissal can arise in many situations. Here are eight common categories of breach:
1. Pay and Benefits Breaches
- Not paying your agreed salary without good reason or explanation
- Imposing a pay cut without your agreement
- Withholding commission or bonuses you’re contractually entitled to
- Failing to pay expenses or benefits specified in your contract
2. Bullying, Harassment and Discrimination
- Persistent bullying by managers or colleagues that your employer fails to address
- Harassment based on protected characteristics (age, sex, race, disability, religion, sexual orientation, pregnancy, gender reassignment, marriage/civil partnership)
- Victimisation after you raise a complaint or grievance
For more on workplace discrimination, see our guide on equality, diversity and inclusion in UK workplaces.
3. Unreasonable Changes to Working Conditions
- Unilateral changes to your role, duties or responsibilities that amount to a demotion
- Forcing you to relocate without contractual authority or reasonable notice
- Changing your working hours or shift patterns without agreement
- Removing benefits (company car, private healthcare, flexible working) without consent
4. Failure to Address Grievances
- Refusing to investigate a formal grievance you’ve raised
- Ignoring serious complaints about bullying, harassment or safety
- Dismissing your concerns without proper consideration
According to Acas guidance, raising a grievance that your employer refuses to look into can be grounds for constructive dismissal.
5. Health and Safety Breaches
- Forcing you to work in unsafe conditions despite your objections
- Failing to provide necessary equipment or training to do your job safely
- Ignoring health and safety concerns you’ve raised
Note: Resignations due to health and safety breaches are “automatically unfair”—you don’t need two years’ service and there’s no cap on compensation.
6. Breach of Trust and Confidence
The “implied term of mutual trust and confidence” is fundamental to every employment contract. Breaches include:
- False accusations of misconduct without investigation
- Public humiliation or undermining your authority
- Excluding you from meetings, emails or decisions relevant to your role
- Failing to support you when you’re being bullied or harassed
7. Disciplinary and Performance Issues
- Subjecting you to unfair disciplinary action without proper process
- Imposing unrealistic performance targets designed to force you out
- Micromanaging or setting you up to fail
8. Whistleblowing Retaliation
- Victimising you after you make a protected disclosure (whistleblowing)
- Demoting, sidelining or isolating you in retaliation for raising concerns about wrongdoing
Note: Whistleblowing dismissals are automatically unfair, have no service requirement, and no compensation cap.
What to Do If You’re Experiencing Constructive Dismissal
If you believe your employer has fundamentally breached your contract, follow this action plan:
Step 1: Don’t Resign Immediately
Resigning in the heat of the moment can weaken your case. Take time to:
- Document everything: Keep emails, messages, notes of meetings, and records of incidents
- Seek advice: Contact Acas (0300 123 1100), a trade union representative, or an employment solicitor
- Consider your options: Can the issue be resolved? Is there an alternative to resigning?
Step 2: Raise a Formal Grievance
Before resigning, you should usually raise a formal grievance under your employer’s grievance procedure. This:
- Gives your employer a chance to fix the problem
- Creates a paper trail showing you tried to resolve the issue
- Strengthens your tribunal claim if the grievance is ignored or mishandled
How to raise a grievance:
- Put your complaint in writing
- Be specific about the breach and how it affects you
- State what you want your employer to do
- Keep a copy of everything
For guidance, see Acas advice on raising a grievance.
Step 3: Consider Whether to Stay or Go
Staying in your job while pursuing a grievance can be difficult, but resigning too quickly can harm your claim. Weigh up:
- Can the issue be fixed? If your employer takes your grievance seriously and offers a genuine solution, you may not need to resign.
- Is your health at risk? If staying is causing serious stress or mental health problems, your wellbeing comes first.
- Can you afford to leave? Consider your financial position, especially if you don’t have another job lined up.
Step 4: Resign in Writing (If You Decide to Leave)
If you decide to resign, do it properly:
- Resign in writing (letter or email)
- State clearly that you’re resigning due to your employer’s fundamental breach of contract
- Specify the breach(es) and refer to your grievance if you raised one
- Keep it professional—avoid emotional language
- Don’t work your notice if the breach is so serious that you can’t reasonably be expected to stay (but get legal advice first, as this could be a breach of your contract)
Example resignation letter:
Dear [Manager’s Name],
I am writing to resign from my position as [Job Title] with immediate effect.
I am resigning because you have fundamentally breached my contract of employment. Specifically, [describe the breach, e.g., “you have unilaterally reduced my salary by 20% without my agreement” or “you have failed to address the serious bullying I reported in my grievance dated [date], leaving me with no choice but to leave”].
I consider myself constructively dismissed and reserve my right to pursue a claim for constructive unfair dismissal at an employment tribunal.
Yours sincerely,
[Your Name]
Step 5: Start Acas Early Conciliation
Before you can lodge a tribunal claim, you must notify Acas and go through early conciliation. This is a free, confidential service where an Acas conciliator tries to help you and your employer reach a settlement without going to tribunal.
How it works:
- Complete the Acas early conciliation form online
- An Acas conciliator will contact you (usually within a few days)
- They’ll explore whether settlement is possible
- If no settlement is reached, Acas issues an early conciliation certificate, which you need to lodge your tribunal claim
Time limits: You must start early conciliation within three months minus one day of your last day of employment (extending to six months from October 2026). The conciliation process pauses the clock, giving you extra time to lodge your claim.
Step 6: Lodge Your Employment Tribunal Claim
If early conciliation doesn’t resolve the issue, you can lodge a claim with the employment tribunal. You’ll need:
- Your early conciliation certificate number
- Details of your claim (the breach, why it was fundamental, how you’ve suffered)
- Details of the compensation you’re seeking
Time limit: You have one month from the date on your early conciliation certificate to lodge your claim (or longer if Acas conciliation extended the deadline).
For a step-by-step guide to tribunal claims, see this article on employment tribunal claims in the UK.
Constructive Dismissal Compensation: What Can You Claim?
If your constructive dismissal claim succeeds, you can claim two types of award:
1. Basic Award
Calculated like statutory redundancy pay, based on:
- Your age at the date of termination
- Your length of continuous service (up to 20 years)
- Your gross weekly pay (capped at £719 for 2025/26)
Age multipliers:
- Under 22: 0.5 weeks’ pay per year of service
- 22–40: 1 week’s pay per year of service
- 41+: 1.5 weeks’ pay per year of service
Maximum basic award: £21,570 (30 weeks × £719)
Example: You’re 45, with 8 years’ service, earning £800/week (capped at £719).
- Basic award = 1.5 × 8 × £719 = £8,628
For a quick calculation, use this redundancy pay calculator.
2. Compensatory Award
This compensates your actual financial losses caused by the dismissal:
- Lost earnings (past and future)
- Loss of statutory rights (usually £500–£600)
- Pension losses (employer contributions you’ve missed)
- Loss of benefits (company car, health insurance, bonuses)
- Job search expenses (reasonable costs)
Maximum compensatory award: £118,223 or 52 weeks’ gross salary (whichever is lower) for 2025/26.
Important: Unlike unfair dismissal, you must give credit for earnings during your notice period. If you found a new job within your notice period, you can’t claim for that time.
Example: You earned £50,000/year (£962/week net). You were unemployed for 12 weeks, then found a job paying £45,000/year (£865/week net).
- Lost earnings (12 weeks): 12 × £962 = £11,544
- Ongoing loss (estimated 26 weeks): 26 × (£962 – £865) = £2,522
- Loss of statutory rights: £600
- Pension loss (3% employer contribution, 38 weeks): (£50,000 × 3% × 38) ÷ 52 = £1,096
- Job search costs: £200
- Total compensatory award: £15,962
Reductions: Tribunals can reduce your award if:
- You contributed to the dismissal through your own conduct
- You failed to mitigate your loss (e.g., didn’t look for work)
- Your employer can show you would have been dismissed anyway (Polkey reduction)
- You or your employer failed to follow the Acas Code of Practice (up to 25% reduction or increase)
3. Additional Awards (No Cap)
If your constructive dismissal also involves:
- Discrimination (age, sex, race, disability, religion, sexual orientation, pregnancy, gender reassignment)
- Whistleblowing
- Health and safety concerns
…there is no statutory cap on compensation. Awards can include:
- Injury to feelings: £1,200–£60,700+ (Vento bands)
- Unlimited financial losses
- Aggravated damages (if your employer acted maliciously)
Average awards (2023/24):
- Unfair dismissal: £13,749 (median: £6,746)
- Sex discrimination: £53,403 (median: £16,161)
- Disability discrimination: £44,483 (median: £17,218)
Source: Employment Tribunal Statistics 2023/24
Settlement vs Tribunal: Which Route Should You Take?
Most constructive dismissal cases settle before reaching a tribunal hearing. Here’s how to decide:
When to Settle
Pros:
- Faster resolution (weeks vs 6–12 months for tribunal)
- Lower stress (no hearing, no cross-examination)
- Certainty (you know what you’ll get)
- No legal costs risk (tribunals rarely award costs, but it’s possible)
- Confidentiality (settlement terms can be confidential)
Cons:
- Lower payout (typically 60–80% of estimated tribunal award)
- No public vindication
- Employer admits no wrongdoing
When to consider settlement:
- Your case has weaknesses (e.g., you delayed resigning, didn’t raise a grievance)
- You need money quickly
- You want to avoid the stress of a tribunal
- Your employer makes a reasonable offer
When to Go to Tribunal
Pros:
- Higher potential compensation (full award if you win)
- Public vindication (tribunal judgment is public)
- Employer held accountable
Cons:
- Long delays (6–12 months to hearing)
- High stress (preparing evidence, attending hearing, cross-examination)
- Uncertain outcome (success rate for unfair dismissal is around 50%)
- Legal costs (£5,000–£15,000+ for representation, though you can represent yourself)
- No guarantee of payment (even if you win, enforcing the award can be difficult if your employer is insolvent)
When to go to tribunal:
- You have a strong case with clear evidence
- The breach is serious and well-documented
- You raised a grievance that was ignored
- Your employer refuses to negotiate or makes a derisory offer
- You want public accountability (e.g., discrimination, whistleblowing)
Evidence You Need to Prove Constructive Dismissal
Constructive dismissal claims are difficult to win. You need strong evidence to prove:
- Your employer committed a fundamental breach
- You resigned in response to that breach
- You didn’t delay or affirm the contract
Evidence Checklist
Documents:
- Employment contract and any amendments
- Job description
- Emails, letters and messages showing the breach
- Your grievance letter and employer’s response (if any)
- Your resignation letter
- Payslips (showing pay cuts, unpaid wages, etc.)
- Performance reviews, appraisals
- Disciplinary or capability letters
- Medical evidence (if the breach affected your health)
Witness Evidence:
- Statements from colleagues who witnessed the breach
- Notes of meetings or incidents (contemporaneous notes are best)
- Diary entries recording events as they happened
Timeline:
- A clear chronology of events leading to your resignation
- Dates of key incidents, grievances, and your resignation
Tip: Start collecting evidence as soon as you suspect constructive dismissal. Don’t wait until after you resign.
Common Mistakes That Destroy Constructive Dismissal Claims
1. Resigning Without Raising a Grievance
If you resign without giving your employer a chance to fix the problem, tribunals may find you acted prematurely.
Solution: Raise a formal grievance first (unless the breach is so serious that staying is impossible).
2. Delaying Your Resignation
If you continue working for weeks or months after the breach, you may be seen to have “affirmed” the contract.
Solution: Resign promptly (within days or weeks, not months).
3. Giving the Wrong Reason for Leaving
If your resignation letter says “I’ve found a better opportunity” or “I’m relocating,” you can’t later claim constructive dismissal.
Solution: State clearly in your resignation letter that you’re resigning due to your employer’s breach.
4. Missing the Tribunal Deadline
You have three months minus one day from your last day of employment to start Acas early conciliation (extending to six months from October 2026).
Solution: Diarise the deadline and start early conciliation as soon as possible.
5. Failing to Mitigate Your Loss
If you don’t look for work after resigning, tribunals will reduce your compensation.
Solution: Apply for jobs, keep records of applications, and accept reasonable offers.
6. Accepting a Settlement Agreement Without Advice
If your employer offers you a settlement agreement (formerly called a compromise agreement), don’t sign it without taking independent legal advice. Once you sign, you can’t bring a tribunal claim.
Solution: Your employer must pay for you to get legal advice on the settlement. Use a specialist employment solicitor.
For more on settlement agreements, see this guide on settlement agreements in the UK.
Constructive Dismissal and the Employment Rights Act 2025
The Employment Rights Act 2025 introduces significant changes that will affect constructive dismissal claims:
1. Reduced Qualifying Period (From 1 January 2027)
The qualifying period for unfair dismissal protection will reduce from two years to six months. This means:
- Employees with six months’ service will be able to claim constructive dismissal
- More workers will have protection
- Employers will need to be more careful from day one
Who this affects: Anyone with six months or more service on 1 January 2027 will automatically gain protection from that date.
2. Removal of Compensation Cap (From 2027)
The statutory cap on compensatory awards (currently £118,223) will be removed, bringing constructive dismissal in line with discrimination and whistleblowing claims.
Impact: High earners who are constructively dismissed will be able to claim their full financial losses, not just one year’s salary. This could lead to significantly higher awards.
3. Extended Tribunal Time Limits (From October 2026)
The time limit for bringing tribunal claims will extend from three months minus one day to six months minus one day.
Impact: Employees will have more time to seek advice, gather evidence, and decide whether to bring a claim.
For more on these changes, see our article on unfair dismissal in the UK.
Your 30-Day Action Plan: From Breach to Claim
If you’re facing constructive dismissal, use this timeline to protect your rights:
Days 1–3: Assess and Document
- Identify the breach and assess whether it’s fundamental
- Start documenting everything (emails, messages, notes)
- Seek initial advice (Acas, union, solicitor)
Days 4–7: Raise a Grievance
- Draft and submit a formal grievance letter
- Keep a copy and proof of delivery
- Request a grievance meeting
Days 8–21: Await Grievance Outcome
- Attend the grievance meeting (take notes or a companion)
- Continue documenting any ongoing breaches
- Consider whether the employer’s response resolves the issue
Days 22–25: Decide Whether to Resign
- If the grievance is ignored or inadequately addressed, decide whether to resign
- Get legal advice before resigning
- Draft your resignation letter
Day 26: Resign in Writing
- Submit your resignation letter stating you’re resigning due to the breach
- Keep a copy and proof of delivery
Days 27–30: Start Acas Early Conciliation
- Complete the Acas early conciliation form online
- Gather evidence for your claim
- Consider whether you want to settle or go to tribunal
After 30 days:
- Continue with Acas conciliation (usually 4–6 weeks)
- If no settlement, lodge your tribunal claim within one month of receiving your early conciliation certificate
Where to Get Help and Advice
Free Advice
- Acas Helpline: 0300 123 1100 (Monday–Friday, 8am–6pm) – free, confidential advice on employment rights
- Citizens Advice: www.citizensadvice.org.uk – free advice on constructive dismissal and tribunal claims
- Gov.uk: www.gov.uk – guidance on employment rights and tribunal claims
Trade Unions
If you’re a union member, contact your union representative for advice and potential legal representation.
Legal Advice
- Employment solicitors: Specialist employment lawyers can advise on your claim, negotiate settlements, and represent you at tribunal. Many offer free initial consultations.
- Legal expenses insurance: Check if your home or car insurance includes legal expenses cover for employment disputes.
Related Guides
- Unfair Dismissal in the UK: Your Complete Guide
- How to Change Careers in the UK
- UK Job Application Mistakes to Avoid
- Graduate and Entry Level Careers in the UK
- In-Demand Jobs in the UK (2026 Outlook)
- How to Negotiate Salary in the UK
- What Questions to Ask at the End of a UK Interview
- 7 Essential Skills UK Employers Are Seeking in 2026
- How to Prepare for a Job Interview in the UK
- Jobs You Can Do Without a Degree in the UK
Final Thoughts: Know Your Rights, Protect Your Future
Constructive dismissal is one of the most complex areas of employment law. It’s not enough to feel you’ve been treated unfairly—you must prove your employer committed a fundamental breach of contract, that you resigned in response, and that you acted promptly.
If you’re in this situation:
- Don’t resign in haste. Take time to document the breach, seek advice, and raise a grievance.
- Get professional advice early. Acas, Citizens Advice, and employment solicitors can help you assess your claim and avoid costly mistakes.
- Act within the time limits. You have three months (soon to be six) to start early conciliation—don’t miss the deadline.
Constructive dismissal claims are difficult to win, but with strong evidence, proper procedure, and the right support, you can hold your employer accountable and secure the compensation you deserve.
Need help finding your next role? Browse the latest job opportunities across the UK or explore our career advice guides to take the next step in your career.
FAQs
1. Can I claim constructive dismissal if I’ve worked for less than two years?
Usually, no—you need two years’ continuous service to claim ordinary unfair dismissal (including constructive dismissal). However, you don’t need two years’ service if your resignation is for an “automatically unfair” reason, such as discrimination, whistleblowing, pregnancy, maternity, or raising health and safety concerns. From 1 January 2027, the qualifying period will reduce to six months under the Employment Rights Act 2025.
2. How long do I have to make a constructive dismissal claim?
You must start Acas early conciliation within three months minus one day from your last day of employment. From October 2026, this will extend to six months minus one day. The early conciliation process pauses the clock, and you then have one month from the date on your early conciliation certificate to lodge your tribunal claim. Missing these deadlines usually means you lose your right to claim.
3. What’s the average payout for constructive dismissal in the UK?
The average unfair dismissal award (which includes constructive dismissal) was £13,749 in 2023/24, with a median of £6,746. However, awards vary widely depending on your salary, length of service, and financial losses. The maximum compensatory award is currently £118,223 or 52 weeks’ gross salary (whichever is lower), plus a basic award of up to £21,570. From 2027, the compensation cap will be removed.
4. Can I claim constructive dismissal if I resign without giving notice?
Yes, if the breach is so serious that you can’t reasonably be expected to work your notice period. However, leaving without notice could itself be a breach of your contract, which may reduce your compensation. Always get legal advice before resigning without notice.
5. Do I have to raise a grievance before resigning?
It’s not a legal requirement, but it’s strongly advisable. Raising a grievance shows you tried to resolve the issue and gives your employer a chance to fix the problem. If you resign without raising a grievance, tribunals may find you acted prematurely, which can weaken or destroy your claim. The exception is if the breach is so serious that raising a grievance would be futile.
6. What if my employer offers me a settlement agreement?
A settlement agreement (formerly called a compromise agreement) is a legally binding contract that ends your employment and waives your right to bring tribunal claims in exchange for a financial payment. Never sign a settlement agreement without taking independent legal advice—your employer must pay for you to get advice from a solicitor. Once you sign, you can’t bring a constructive dismissal claim.
7. Can I claim constructive dismissal and discrimination at the same time?
Yes. If your employer’s breach also involves discrimination (e.g., you were bullied because of your race, sex, disability, age, religion, or sexual orientation), you can bring both claims. Discrimination claims have no statutory cap on compensation and don’t require two years’ service, making them potentially more valuable than constructive dismissal claims alone.
8. What happens if I lose my constructive dismissal claim?
If you lose, you won’t receive any compensation, and you may be ordered to pay your employer’s legal costs (though this is rare in employment tribunals). You’ll also have a tribunal judgment against you, which could affect future employment. This is why it’s crucial to get legal advice before bringing a claim and to assess the strength of your case realistically.
9. Can I claim constructive dismissal if I’m on a fixed-term contract?
Yes, if your employer commits a fundamental breach of your fixed-term contract. However, if your contract simply expires at the end of the fixed term and isn’t renewed, that’s not constructive dismissal—it’s the end of your contract. You may have a claim for unfair dismissal if you have two years’ service and the non-renewal was unfair.
10. What if my employer makes my job impossible after I resign?
If you’ve resigned and are working your notice period, your employer must still treat you fairly and allow you to work your notice. If they make your working conditions intolerable during your notice period (e.g., by excluding you, humiliating you, or removing your duties), this could strengthen your constructive dismissal claim by showing the breach was ongoing.
Key Takeaways
- Constructive dismissal occurs when you resign because your employer has committed a fundamental breach of contract, making it impossible to continue working.
- You usually need two years’ continuous service to claim (reducing to six months from January 2027), and you must be legally classed as an employee.
- The five-stage test helps you assess your claim: identify the breach, check you haven’t affirmed the contract, determine if it’s fundamental, consider cumulative breaches, and confirm you resigned in response.
- Common breaches include non-payment of wages, bullying, harassment, discrimination, unreasonable changes to working conditions, and failure to address grievances.
- Always raise a formal grievance before resigning (unless the breach is so serious that staying is impossible)—this strengthens your claim and gives your employer a chance to fix the problem.
- Resign in writing, clearly stating you’re resigning due to your employer’s breach, and don’t delay—continuing to work for weeks or months can destroy your claim.
- Compensation includes a basic award (up to £21,570) and a compensatory award (up to £118,223 or 52 weeks’ salary)—but the cap will be removed from 2027.
- Start Acas early conciliation within three months minus one day of your last day (extending to six months from October 2026)—missing this deadline usually means you lose your right to claim.
- Most cases settle before tribunal—weigh up the pros and cons of settlement vs tribunal based on the strength of your case, your financial needs, and your appetite for risk.
- Get professional advice early—from Acas, Citizens Advice, a trade union, or an employment solicitor—to avoid costly mistakes and maximise your chances of success.
