Constructive dismissal claim fails after employee stayed on for months
A solutions engineer who resigned after a performance improvement plan and grievance process lost his constructive dismissal claim because he stayed in the job too long after the alleged breaches.
1 min read · Last updated 19 May 2026
Case details
Key facts
- The claimant was employed as a solutions engineer from 23 October 2017 until his resignation on 1 July 2021.
- The respondent had legitimate concerns about the claimant's performance from May 2019, partly due to the claimant undertaking work for another company.
- The claimant was placed on furlough from 4 May 2020 to 27 July 2020 due to the COVID-19 pandemic.
- Upon return from furlough, the claimant was placed on a Performance Improvement Plan (PIP) which was successfully completed on 25 September 2020.
- The claimant submitted a grievance on 16 September 2020, which was not upheld, and an appeal which was also not upheld.
- The claimant resigned with immediate effect on 1 July 2021, alleging constructive dismissal based on 14 alleged breaches of contract.
Timeline
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Employment commenced
Claimant started work as a solutions engineer at Singletrack Systems Limited.
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Performance concerns arise
The respondent began to have concerns about the claimant's performance, partly due to him working for another company.
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Claimant placed on furlough
Due to the COVID-19 pandemic, the claimant was furloughed until 27 July 2020.
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Return from furlough
Claimant returned to work and was placed on a Performance Improvement Plan (PIP).
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Grievance submitted
Claimant submitted a 24-page written grievance raising multiple issues including furlough, PIP, and pay.
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PIP completed successfully
The respondent confirmed the claimant had successfully completed the PIP.
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Performance review and pay rise
Claimant received a £1,000 pay rise after insisting on an early review.
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Grievance outcome
Mr Berman did not uphold the grievance but made recommendations.
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Grievance appeal meeting
Claimant met with external appeal officer Mr Segal.
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Grievance appeal outcome
Mr Segal's report did not uphold the appeal.
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Resignation
Claimant resigned with immediate effect, alleging constructive dismissal.
The legal issue
The tribunal had to decide whether the employer's actions—including furlough, a performance improvement plan, and grievance handling—amounted to a fundamental breach of trust and confidence, and whether the claimant affirmed the contract by staying on.
The outcome
The tribunal dismissed the claims of constructive unfair dismissal and wrongful dismissal.
The key reason was that the claimant had affirmed the contract. Despite alleging multiple breaches, he remained in employment for nine months, accepted a pay rise, and successfully completed a performance improvement plan. The tribunal found that he did not resign in response to a final act that could be considered a repudiatory breach.
No compensation was awarded.
Lessons & takeaways
- If you believe your employer has fundamentally breached your contract, you must resign promptly—delaying can be seen as accepting the situation.
- Accepting a pay rise or other benefits after a dispute can weaken a claim of constructive dismissal.
- A successful performance improvement plan does not necessarily mean the employer has acted fairly; but staying on afterwards can affirm the contract.
- Grievance outcomes that go against you are not automatically a breach of trust and confidence if the process was reasonable.
When staying on costs you your claim
This case shows a common pitfall for employees considering a constructive dismissal claim: the risk of 'affirmation'. The solutions engineer worked for Singletrack Systems Limited for nearly four years. After a period of performance concerns, he was furloughed during the pandemic, then placed on a performance improvement plan (PIP). He completed the PIP successfully, submitted a grievance about his treatment, and received a pay rise. But he didn't resign until nine months later.
By then, the tribunal said, he had affirmed the contract. The law requires an employee to resign promptly—or at least not to accept benefits or carry on as normal—after a fundamental breach. Here, the claimant had accepted a £1,000 pay rise and continued working without objection. The tribunal found that none of the later events amounted to a new breach that could revive his right to resign.
What the employer did right
Singletrack Systems followed a structured process. It raised performance concerns, offered a PIP, and gave the claimant a chance to improve. When he succeeded, it acknowledged that. His grievance was investigated by a senior manager and an external appeal officer. The tribunal noted that the process, while not perfect, was within the range of reasonable responses. The employer also granted an early pay review when the claimant pushed for one.
The lesson for employees
If you think your employer has destroyed trust and confidence, you need to act. Waiting to see how things play out, or continuing to work and accept pay rises, can be fatal to a constructive dismissal claim. The tribunal's decision here was clear: the claimant had affirmed the contract, so there was no dismissal at all. For anyone considering resigning in response to a breach, the message is simple—don't delay.
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