The Insider’s Guide to Constructive Dismissal: 2025 Rules & Laws

Constructive dismissal occurs when an employee resigns due to their employer's fundamental breach of the contract terms. This situation often involves serious issues, including non-payment of wages, unsafe working conditions, or significant changes to job duties without agreement.

Employees may feel they have no choice but to leave, even though they have not been formally dismissed. The law recognises this as a form of unfair dismissal if the breach is serious enough.

This constructive dismissal advice guide focuses on a practical example of constructive dismissal to illustrate how it can occur in the workplace.

What Is Constructive Dismissal?

Constructive dismissal occurs when an employee resigns because their employer has fundamentally breached the employment contract. The resignation is not voluntary but a response to the employer’s conduct.

Such breaches often involve a serious change in terms or treatment that makes it unreasonable for the employee to continue working. The law treats the resignation as if the employer ended the contract.

Examples of conduct that may lead to constructive dismissal include:

• Unreasonable changes to job duties, hours, or location
• Failure to address harassment or bullying in the workplace
• Non-payment or late payment of wages
• Undermining trust and confidence between employer and employee

To succeed in a claim, the employee must show that the employer’s actions amounted to a fundamental breach. It is not enough to prove minor disagreements or isolated incidents.

Key differences between dismissal types:

Claims for constructive dismissal can be difficult to prove, as tribunals require clear evidence of the breach and its impact on the employee’s decision to resign.

Employees are usually advised to seek legal or professional guidance before resigning, as leaving a job without strong grounds can affect both income and the chances of a successful claim.

Behaviour That Amounts to a Breach of Contract

Constructive dismissal arises when an employer’s conduct breaches the employment contract in a way that leaves the employee with little choice but to resign. The breach may be a single serious act or a series of actions that, taken together, undermine trust and confidence.

Common examples include:

• Failure to pay wages or persistent late payment
• Unjustified demotion or significant changes to duties
• Bullying, harassment, or discrimination
• Unsafe working conditions that are not addressed
• Ignoring formal grievances raised by the employee

These behaviours may breach express terms of the contract, such as pay or job title, or the implied term of mutual trust and confidence. Even where the contract does not explicitly mention certain obligations, employers must act in good faith and avoid conduct that damages the employment relationship.

The seriousness of the breach matters. Minor disagreements or isolated mistakes are unlikely to justify resignation.

However, repeated conduct, such as ongoing failure to pay correctly or a pattern of unreasonable treatment, can amount to a breach when viewed cumulatively.

Employees must usually resign promptly after the breach to show they are treating the contract as terminated, rather than accepting the employer’s conduct.

What Are the Rules on Constructive Dismissal?

Constructive dismissal arises when an employee resigns because their employer has fundamentally breached the employment contract. The law requires that the breach is serious enough to justify resignation, such as undermining trust and confidence between the parties.

Common examples include:

• Unreasonable changes to hours, duties, or location
• Failure to address harassment or bullying
• Unpaid wages or withheld benefits
• Demotion without a valid reason

Employees must usually have at least two years of continuous service to bring a claim. However, some breaches, such as discrimination or whistleblowing, allow claims without this service requirement.

Timing is important. If an employee continues working for too long after the breach, it may be seen as acceptance of the new terms.

Resignation should normally follow soon after the employer’s conduct.

The claim process typically involves:

1. Resigning in response to the breach
2. Submitting a claim to an employment tribunal within three months less one day of the resignation date
3. Demonstrating evidence of the employer’s conduct and its impact

What Is the Relationship Between Constructive Dismissal and Unfair Dismissal?

Constructive dismissal and unfair dismissal are closely linked under UK employment law, but they are not the same. Both involve the end of employment under disputed circumstances, yet the route by which the employment ends differs.

In constructive dismissal, the employee resigns because the employer’s conduct has fundamentally breached the employment contract. In unfair dismissal, the employer directly ends the employment without a fair reason or a fair procedure.

A constructive dismissal claim is legally treated as a type of unfair dismissal claim. However, the employee must first prove that the resignation was forced by the employer’s actions before the tribunal considers whether the dismissal was unfair.

Employees usually need two years’ continuous service to bring either claim, unless the dismissal falls under an automatically unfair category such as whistleblowing or pregnancy.

While both claims protect employees from unfair treatment, they require different types of evidence and focus on different actions, either the employer’s decision to dismiss or the employer’s conduct leading to resignation.

How to Deal With Constructive Dismissal

When an employee believes they have been forced to resign due to their employer’s conduct, they should first gather evidence. Keeping records of emails, meeting notes, and any changes to working conditions helps demonstrate a breach of contract.

Seeking independent legal advice at an early stage is strongly recommended. A solicitor or adviser can explain rights, assess the strength of a potential claim, and guide next steps.

Before resigning, it may help to raise the issue formally. Using a grievance procedure shows that the employee attempted to resolve matters internally, which can be important if the case later goes to a tribunal.

If resignation has already taken place, the next step is deciding whether to submit a claim to an employment tribunal. Claims usually need to be made within three months minus one day of leaving employment.

Employees often consider a settlement agreement as an alternative to a tribunal. This can provide compensation and a clean break, though it requires legal advice to be valid.

Key steps can be summarised as:

• Document all incidents and changes to employment terms.
• Seek advice from a solicitor, trade union, or advisory service.
• Raise a grievance where appropriate.
• Consider settlement as a practical option.
• File a claim within the tribunal deadline if necessary.

How Can an Employee Claim Constructive Dismissal?

An employee can claim constructive dismissal if they resign because their employer has committed a serious breach of contract. This usually involves behaviour that makes it unreasonable for them to continue working, such as significant changes to terms, harassment, or failure to address grievances.

Before resigning, many employees choose to submit a constructive dismissal letter. This letter sets out the reasons for leaving and provides evidence of the employer’s conduct.

While not legally required, it can help clarify the basis of the claim.

To bring a claim, the employee must usually have at least two years of continuous service. They must also prove that the employer’s actions caused them to resign, and that they did not delay too long before leaving, as delay may weaken the case.

The claim is made through an Employment Tribunal. The employee must first notify Acas and go through Early Conciliation before submitting the claim.

This step is mandatory and aims to encourage settlement without a tribunal hearing.

Key steps often include:

• Keeping written records of incidents and communications
• Seeking advice from a union, solicitor, or the Citizens Advice Bureau
• Filing the tribunal claim within the strict time limit of three months less one day from the resignation date

Employees often ask, “Can I claim constructive dismissal?” The answer depends on their employment status, the seriousness of the employer’s breach, and whether they can provide evidence to support their case.

Key Takeaways

Constructive dismissal happens when an employee resigns because their employer has seriously breached the employment contract, such as by changing terms, withholding pay, or failing to address harassment.

To succeed in a claim, employees must show clear evidence of the breach and that they resigned in response to it, usually within a short time frame. 

While it is treated as a form of unfair dismissal under UK law, the burden is on the employee to prove that the employer’s actions forced their resignation. 

Anyone considering a claim should act quickly, seek legal advice, and carefully document all evidence to strengthen their case.