Bonus disappointment not a breach: constructive dismissal claim dismissed
A construction manager who resigned after receiving a £5,000 bonus instead of the 5% of cost savings he hoped for has lost his unfair dismissal claim. The tribunal found no binding promise was made.
1 min read · Last updated 18 May 2026
Case details
- #constructive-dismissal
- #bonus-dispute
- #verbal-promise
- #self-employed-to-employee
- #resignation
Key facts
- The claimant was employed as a Construction Manager from 1 August 2018 until he resigned on 30 July 2021.
- The claimant alleged he was promised a 5% bonus on cost savings of over £1.65 million from two projects.
- The respondent's director said 5% was 'not a bad figure' but needed to discuss with others; no agreement was reached.
- The claimant received a £5,000 bonus at the end of 2021, which he considered insufficient.
- The claimant resigned due to disappointment over the bonus and salary, not because of any breach of contract.
- The tribunal found no breach of contract and dismissed all claims.
Timeline
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Employment started
The claimant became an employee of Ardmore Construction Ltd, having previously been a self-employed contractor.
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Meeting with James Byrne
The claimant met with director James Byrne and requested a 5% bonus on cost savings of over £1.65 million. Byrne said 5% was 'not a bad figure' but needed to discuss with others.
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Email from Pat Byrne
Pat Byrne, an owner, emailed the claimant stating the bonus had not been agreed, but indicated they would review his role and salary.
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Moved to Old War Office site
The claimant moved to work on the Old War Office project, where he remained until his resignation.
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Resignation
The claimant resigned with effect from 31 August 2021, citing disappointment over bonus and salary.
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Early conciliation started
Early conciliation began.
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Claim form presented
The claimant presented his claim to the employment tribunal.
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Hearing and judgment
The tribunal heard the case and dismissed all claims.
The legal issue
The tribunal had to decide whether the employer breached the claimant's contract by failing to pay a promised bonus, and if that breach entitled him to resign and claim constructive unfair dismissal. The key question was whether a verbal statement by a director amounted to a binding agreement.
The outcome
The tribunal dismissed all claims, finding that no contract for a bonus was ever agreed.
- The claimant had a meeting in April 2019 where a director said 5% was 'not a bad figure' but needed to discuss with others. An email from another owner in September 2019 made clear no agreement had been reached.
- The claimant acknowledged in evidence that he realised no contract existed at that meeting; he only had a hope and expectation.
- He resigned in July 2021 due to disappointment over his bonus and salary, not because of any breach of contract.
- No compensation was awarded as all claims failed.
Lessons & takeaways
- A vague verbal promise like 'not a bad figure' is unlikely to create a binding contract — you need clear agreement on terms.
- If you resign because you are disappointed with pay or bonuses, that is not constructive dismissal unless there is a fundamental breach of contract.
- Keep written records of any bonus discussions and ensure any agreement is confirmed in writing to avoid disputes.
- Continuing to work without complaint for months after a disputed promise weakens any claim of breach.
A bonus that never was
This case shows the difficulty of proving a verbal bonus agreement, especially when the employer's words fall short of a clear promise. The construction manager had worked hard on two projects, generating significant cost savings, and believed he had been promised 5% of those savings. But when a director said 5% was 'not a bad figure' but needed to discuss with others, that was not enough to create a binding contract.
What the employer did right
Ardmore Construction Ltd handled the situation carefully. The director did not give a definitive yes, and the follow-up email from another owner made clear no agreement had been reached. The employer also paid a £5,000 bonus, which, while disappointing to the claimant, showed goodwill. The tribunal noted the claimant himself accepted in evidence that he realised no contract existed at the meeting.
Why the claim failed
The claimant resigned because he felt underappreciated, not because of a breach of contract. For constructive dismissal, you need a fundamental breach that justifies resignation. Disappointment over a bonus that was never promised does not meet that threshold. The tribunal also noted the claimant had not complained about being overworked until after his bonus disappointment, which undermined his case.
Key takeaway for employees
If you believe you are entitled to a bonus, get it in writing. Verbal discussions, especially where the employer says they need to 'discuss with others', are unlikely to be enforceable. And if you are unhappy with your pay, raise the issue formally while still employed — resigning in disappointment without a clear breach will not succeed in a tribunal.
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