Car Parking Manager loses constructive dismissal claim over furlough, PIP and grievance handling
A 10-year employee who resigned claiming constructive dismissal after being furloughed, placed on a performance improvement plan and having his grievance rejected has lost his case. The tribunal found no fundamental breach of trust and confidence.
1 min read · Last updated 18 May 2026
Case details
Key facts
- The claimant resigned on 20 September 2021, claiming constructive dismissal.
- The claimant was employed from 13 May 2011 to 26 November 2021, latterly as Car Parking Manager.
- The claimant was furloughed for two days a week in November 2020 and January 2021.
- The claimant suffered a trapped nerve in December 2020 and was off work for four days.
- The claimant was placed on a Performance Improvement Plan on 28 May 2021.
- The claimant's grievance and appeal were dismissed by the respondent.
Timeline
-
Employment started
Claimant began working for the respondent.
-
Holiday dispute with line manager
Disagreement with Katie Wyle over holiday booking led to a formal email exchange.
-
Record of conversation filed
HR filed the email trail and claimant's response on his file.
-
First furlough period
Claimant furloughed two days a week due to Covid-19.
-
Trapped nerve injury
Claimant suffered a trapped nerve, requiring hospital treatment and physiotherapy.
-
Second furlough period and expanded duties
Claimant agreed to flexible furlough and expanded remit.
-
Furlough reduced to one day
After discussions, claimant's furlough reduced to one day per week.
-
Bonus awarded
Claimant received a 10% bonus (£7,441) based on a 'solid' rating.
-
Performance Improvement Plan meeting
Claimant was placed on a PIP; alleged 'cheque comment' not found to have been made.
-
Sick leave started
Claimant went on sick leave until 4 August 2021.
-
Grievance raised
Claimant initiated formal grievance procedure.
-
Grievance dismissed
Dawn Thwaites dismissed the grievance.
-
Appeal dismissed
Amanda Beattie dismissed the appeal, but recommended reimbursement for holiday days.
-
Resignation
Claimant resigned, claiming constructive dismissal.
The legal issue
The tribunal had to decide whether the employer's conduct, taken as a whole, breached the implied term of trust and confidence, entitling the employee to resign and claim constructive unfair dismissal.
The outcome
The tribunal dismissed the claim of constructive unfair dismissal.
The key reasons were that none of the alleged breaches, individually or together, amounted to a fundamental breach of contract. The tribunal found that:
- The furlough arrangements were agreed and reasonable.
- The performance improvement plan was justified and not a pretext.
- The grievance process was fair and the appeal addressed the issues.
- The 'cheque comment' alleged by the claimant did not occur.
- The bonus was discretionary and paid correctly.
- Sick pay was not contractual and the employer acted reasonably.
No compensation was awarded as the claim failed.
Lessons & takeaways
- Constructive dismissal requires a fundamental breach of contract — feeling unhappy or treated unfairly is not enough.
- Employers can place staff on furlough and performance improvement plans if they act reasonably and consult properly.
- A discretionary bonus decision will rarely amount to a breach of contract unless it is irrational or perverse.
- Grievance procedures that are followed fairly and transparently can protect an employer from constructive dismissal claims.
When does employer conduct cross the line?
This case shows the high bar for constructive dismissal. The claimant, a car parking manager with 10 years' service, resigned after a series of events: furlough during the pandemic, a performance improvement plan, a dispute over a bonus, and a grievance that was dismissed. He argued that the employer's conduct destroyed trust and confidence, forcing him to resign.
What the tribunal found
The tribunal examined each alleged breach individually and collectively. It found that the furlough was mutually agreed and the expanded duties were reasonable. The performance improvement plan was based on genuine concerns about performance, not a pretext. The bonus was discretionary and paid correctly. The 'cheque comment' — where the claimant alleged a manager said 'if you're looking for a pay cheque, you're not getting one' — was not found to have been made. The grievance process was thorough, with an independent appeal that recommended reimbursement for holiday days.
Why the result matters
This case reinforces that constructive dismissal claims are difficult to win. Employees must show that the employer's conduct was so serious it fundamentally breached the contract. Disagreements over performance, bonus decisions and grievance outcomes, without more, are unlikely to cross that threshold. Employers who follow fair procedures and document their decisions are well placed to defend such claims.
Similar cases
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.
Beauty therapist loses constructive dismissal claim but wins holiday pay
A beauty therapist who resigned claiming constructive unfair dismissal lost her case, but the tribunal ordered True Beauty Salon Limited to pay £639.60 for unpaid holiday pay and an unauthorised deduction.
25 years of service ended by constructive dismissal after role change and furlough breach
An administrator with 25 years' service won £21,237 after being constructively dismissed when her employer changed her role, required her to work while on furlough, and sent work during sick leave.
Night concierge resigns after TUPE transfer: constructive dismissal claim fails
A night concierge who resigned after a TUPE transfer, claiming his overtime, sick pay and holiday entitlement were cut, has lost his unfair dismissal claim. The tribunal found no such cuts were made.