Constructive Dismissal

Key Points

  • Constructive dismissal occurs when an employee accepts the employer’s repudiation of the employment contract and resigns in response. In such a case it will usually be a wrongful dismissal and may also be an ‘unfair’ dismissal.
  • If there is a wrongful dismissal, the employer can no longer enforce any of the terms of the contract against the employee, including post termination restraints.
  • The employee must resign in response to the breach and should let the employer know that it is the employer’s conduct that caused his resignation, although ultimately this is a question of fact for the tribunal.
  • The employee should not delay in resigning in response to the breach as this may indicate acceptance of the breach.
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