National Sales Manager loses constructive dismissal claim over bonus plan dispute
A National Sales Manager who resigned after a bonus plan dispute and alleged bullying has lost her claims for constructive unfair dismissal and unlawful deductions from wages. The tribunal found no breach of trust and confidence.
1 min read · Last updated 18 May 2026
Case details
- #constructive-dismissal
- #bonus-plan
- #trust-and-confidence
- #grievance-procedure
- #sick-leave-support
Key facts
- The claimant was promoted to National Sales Manager on 30 July 2021 and her salary increased to £65,000.
- The claimant's bonus was calculated under the NSM plan for Q3 and Q4 of FY22, which she did not dispute at the time.
- The claimant raised a grievance on 29 April 2022 alleging lack of support and bullying by Gill Davies.
- The respondent appointed an independent consultant to investigate the grievance, which resulted in one of 22 allegations being partially upheld.
- The claimant resigned on 13 June 2022, before the appeal of her grievance was concluded.
- The tribunal found that the respondent did not breach the implied term of trust and confidence and that the claimant was not constructively dismissed.
Timeline
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Employment started
Claimant began employment as Territory Manager.
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Promotion to NSM
Claimant promoted to National Sales Manager; salary increased to £65,000 from 1 October 2021.
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Bonus increase discussion
Gill Davies messaged claimant about increasing bonus to £18,000, which claimant understood as moving to NSM plan.
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Appraisal meeting
Covertly recorded appraisal where Gill Davies was supportive; claimant raised concerns about workload.
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Sick leave started
Claimant signed off with work-related stress for 12 weeks.
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Grievance raised
Claimant raised 22 allegations against Gill Davies, not including bonus issues.
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Bonus statement received
Claimant received annual bonus statement showing NSM plan calculations; she disputed being on NSM plan.
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Resignation
Claimant resigned, citing role no longer tenable, and requested outstanding bonus of £4,640.63.
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Claim presented
Claimant submitted claim for constructive unfair dismissal and unlawful deductions.
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Hearing day 1
Tribunal hearing commenced via video.
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Judgment given
Tribunal dismissed both claims.
The legal issue
The tribunal had to decide whether the employer's actions—including alleged bullying, lack of support, and a disputed bonus calculation—amounted to a fundamental breach of contract entitling the employee to resign and claim constructive dismissal, and whether the bonus deduction was unlawful.
The outcome
The tribunal dismissed both claims.
- The constructive unfair dismissal claim failed because the employer's conduct did not breach the implied term of trust and confidence. The grievance was properly investigated, and the bonus dispute did not justify resignation.
- The unlawful deductions claim failed because the bonus was calculated under the correct plan (NSM) and the employee had not objected to it at the time.
- No compensation was awarded.
Lessons & takeaways
- If you accept a bonus calculation without objection for several months, it becomes harder to later claim it was unlawful.
- Resigning before your grievance appeal is concluded can weaken a constructive dismissal claim, as the employer's process may still be ongoing.
- Covertly recording meetings may not help your case if the recording shows the employer being supportive.
- A thorough grievance investigation by an independent consultant can protect an employer from a breach of trust and confidence claim.
When a bonus dispute leads to resignation
This case shows the risks of resigning before internal processes are complete. The National Sales Manager, who had worked for the company for five years, raised a grievance about alleged bullying and lack of support. The employer appointed an independent consultant, who partially upheld one of 22 allegations. Before the appeal was concluded, the employee resigned, citing the bonus dispute as the final straw.
The tribunal found that the employer had not acted in a way that destroyed trust and confidence. The grievance was investigated properly, and the bonus was paid under the plan that applied to the employee's role. The employee had not raised the bonus issue in her grievance and had accepted the calculations for two quarters without complaint.
What the employer did right
The employer took the grievance seriously by appointing an independent investigator. This helped demonstrate that it was not trying to undermine the employee. The tribunal also noted that the employee's manager had been supportive in a recorded appraisal meeting, which undermined the bullying allegations.
Key takeaway for employees
If you believe your bonus has been miscalculated, raise the issue promptly in writing. Do not wait until after you resign. Similarly, if you have a grievance, allow the employer's process to run its course before deciding to leave. Resigning early can make it difficult to prove that the employer's conduct forced you out.
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