Branch manager resigned after bonus withheld over charity donations: constructive dismissal
A branch manager who was reinstated after a gross misconduct dismissal but then resigned after his bonus was withheld and new investigations opened has won his constructive unfair dismissal claim.
1 min read · Last updated 18 May 2026
Case details
- #constructive-dismissal
- #bonus-withholding
- #charity-donations
- #inadequate-investigation
- #final-written-warning
- #breach-of-contract
Key facts
- The claimant was instructed by his line manager to allocate charity donations to dormant customer accounts.
- The claimant was dismissed for gross misconduct but reinstated on appeal with a final written warning.
- The respondent withheld the claimant's bonus due to the final written warning.
- The respondent failed to adequately investigate the claimant's complaint that he was acting on his manager's instructions.
- The claimant resigned after being told of new investigations and after his concerns were dismissed.
Timeline
-
Employment started
Claimant began employment as branch manager at Malvern.
-
Charity allocations made
Claimant allocated 80 charity payments and 18 courier transactions to dormant customer accounts before stock take.
-
HSPR meeting
Claimant told CW that high trading account numbers were partly due to charity donations.
-
Phone calls with CW
CW called claimant twice; claimant says CW told him to stop the charity practice and said there was a miscommunication.
-
Investigation hearing by CW
CW held investigation meeting without note taker; claimant signed notes but disputed accuracy.
-
Claimant called HR
Claimant reported CW's instructions and that CW refused to include them in notes.
-
Disciplinary hearing
PD chaired disciplinary hearing; claimant explained he acted on CW's instructions.
-
Dismissal
PD dismissed claimant for gross misconduct.
-
Appeal hearing
CD heard appeal.
-
Appeal outcome
CD reinstated claimant with final written warning; bonus withheld.
-
Call about new investigations
CW told claimant about three new investigations.
-
KW email
KW dismissed claimant's concerns, offered mediation, confirmed bonus withheld.
-
Resignation
Claimant resigned citing final written warning, bonus withholding, and inadequate investigation.
The legal issue
The tribunal had to decide whether the employer's actions—imposing a final written warning, withholding a bonus, failing to investigate the manager's complaint, and then starting new investigations—amounted to a fundamental breach of contract entitling the manager to resign and claim constructive unfair dismissal.
The outcome
The tribunal ruled that the claimant was constructively unfairly dismissed.
Key reasons:
- The employer failed to adequately investigate the claimant's assertion that he was acting on his line manager's instructions when allocating charity donations to dormant customer accounts.
- The decision to impose a final written warning and withhold the 2019 bonus was a breach of the implied term of trust and confidence.
- The new investigations announced on 6 March 2020 and the dismissal of the claimant's concerns on 12 March 2020 were the final straws that justified his resignation.
The tribunal also found that the employer breached the claimant's contract by withholding his bonus and notice pay, but no compensation amounts were specified in the judgment.
Lessons & takeaways
- If you are disciplined for following a manager's instructions, make sure you raise that defence clearly at every stage and ask for it to be investigated.
- Withholding a contractual bonus because of a disciplinary sanction can itself be a breach of contract if the bonus is not clearly linked to conduct under the scheme rules.
- Starting new investigations shortly after reinstating an employee can be seen as undermining trust and confidence, especially if the employee's concerns are dismissed.
- Employers should ensure that disciplinary and appeal decisions are made by people who have not been involved in the investigation to avoid bias.
When following orders leads to a dismissal
This case shows how a breakdown in trust can start with a seemingly routine instruction. The branch manager was told by his line manager to allocate charity donations to dormant customer accounts before a stock take. When this came to light, he was dismissed for gross misconduct. Although he won his appeal and was reinstated with a final written warning, the damage was done.
The employer then withheld his annual bonus because of the warning, refused to properly investigate his complaint that he was only following orders, and later told him new investigations were starting. For the manager, this was the final straw. He resigned and claimed constructive dismissal.
What the employer could have done differently
The tribunal was critical of the way the employer handled the case. The investigation into the charity donations did not properly consider the manager's explanation that he was acting on instructions. The appeal decision, while overturning the dismissal, still imposed a final written warning without fully resolving the dispute over who gave the instructions. The employer then compounded the problem by starting fresh investigations without addressing the manager's concerns.
A fairer approach would have been to conduct a thorough investigation at the outset, including speaking to the line manager who gave the instructions, and to consider whether the bonus scheme allowed for withholding pay in these circumstances.
Why this matters for similar claims
This case is a reminder that constructive dismissal claims can succeed when an employer's actions cumulatively destroy trust and confidence. The tribunal looked at the whole picture: the flawed investigation, the bonus withholding, and the new investigations. For employees, it shows the importance of raising concerns formally and in writing. For employers, it highlights the need to investigate all sides of a story before imposing sanctions, and to ensure that bonus decisions are contractually sound.
Similar cases
Black psychiatric nurse passed over for dual diagnosis lead role: race and sex discrimination upheld
A Black African community psychiatric nurse with 15 years' service was found to have been discriminated against when two white female colleagues were appointed to a specialist lead role he was qualified for. The tribunal upheld his claims of direct race and sex discrimination and harassment.
Lay-off without pay upheld: 17-year employee loses constructive dismissal claim over unsigned contract
A CAD/CAM designer with 17 years' service lost his constructive dismissal claim after being laid off for four weeks without pay. The tribunal found he had accepted a 2018 contract with a lay-off clause by his conduct.
Duty manager with 39 years' service wins constructive dismissal after split shifts imposed without consultation
A duty manager who resigned after her employer imposed split shifts and reduced hours without consultation, and then failed to address her grievance for over a month, has been awarded £10,683.75 for constructive unfair dismissal.
Constructive dismissal claim upheld: employer's breach led to resignation
A former employee has won her claim for constructive unfair dismissal and breach of contract for notice pay against Acton Vale Community Association. A remedy hearing will determine compensation in January 2024.