Constructive dismissal after unpaid bonus and broken director promise
A family law executive who resigned after her employer failed to pay a £7,000 bonus and refused to make her a director has won her constructive unfair dismissal claim. The tribunal awarded £12,878 in compensation.
1 min read · Last updated 18 May 2026
Case details
Key facts
- The claimant was employed as a Family Law Executive from 26 September 2017, later promoted to Head of Family Law.
- Her employment transferred under TUPE from the second respondent to the first respondent between 29 January and 12 February 2021.
- The respondent failed to pay the claimant's Q1 2022 bonus of £7,035.75, which was a fundamental breach of contract.
- The respondent also breached the contract by not making the claimant a director after she qualified in July 2021.
- The claimant resigned on 9 June 2022 due to the respondent's conduct, constituting constructive dismissal.
- The dismissal was unfair as the respondent had no potentially fair reason.
Timeline
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Employment started
Claimant began employment as a Family Law Executive with the second respondent.
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Resignation retracted
Claimant resigned but retracted after an improved offer including a bonus scheme.
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TUPE transfer notice
Claimant notified of transfer from second to first respondent.
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Final offer accepted
Claimant accepted terms including salary increase, head of family role, and directorship upon qualification.
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Qualification achieved
Claimant obtained CiLEx fellowship, triggering contractual obligation to make her a director.
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Bonus change proposed
Respondent proposed changing bonus calculation to cash received basis.
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Bonus due date
Q1 2022 bonus of £7,035.75 was due but not paid.
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Memorandum on directorship
Respondent indicated claimant would not be made director unless performance improved.
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Resignation
Claimant resigned citing constructive dismissal.
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Employment ended
Claimant's employment terminated.
The legal issue
The tribunal had to decide whether the employer's conduct (non-payment of a contractual bonus and failure to promote to director as agreed) amounted to a repudiatory breach entitling the employee to resign and claim constructive unfair dismissal.
The outcome
The tribunal upheld the claim of constructive unfair dismissal against the first respondent, Lawcommercial Trading Ltd t/a Lawcomm Solicitors. The employer had no potentially fair reason for the dismissal, making it automatically unfair.
The compensation awarded was:
- Basic award: £3,426.00
- Compensatory award: £1,228.61
- Total: £12,878.04 (including other elements)
The claim for unlawful deduction from wages was dismissed as out of time, but the breach of contract claim for the Q1 2022 bonus succeeded.
Lessons & takeaways
- If your employer promises a promotion or bonus as part of your contract, failing to deliver can be a fundamental breach allowing you to resign and claim constructive dismissal.
- Keep a clear record of promises made about pay, bonuses, and career progression – written evidence strengthens your case.
- If you resign over a breach, do so promptly and make clear you are resigning in response to the breach, not for other reasons.
- TUPE transfers preserve your continuity of service, so you can still claim unfair dismissal even if your employer changes during your employment.
When broken promises become constructive dismissal
This case shows how an employer's failure to honour contractual commitments – both financial and promotional – can lead to a successful constructive dismissal claim. The employee, a family law executive who later became head of family law, had been promised a directorship upon qualifying as a CiLEx fellow, as well as a bonus scheme. When the employer failed to pay her Q1 2022 bonus of over £7,000 and later told her she would not be made a director unless her performance improved, she resigned.
What the employer did wrong
The tribunal found that the non-payment of the bonus was a fundamental breach of contract. The employer had also breached the contract by not making her a director after she qualified in July 2021. These breaches went to the heart of the employment relationship, giving the employee the right to resign and claim constructive dismissal. The employer had no potentially fair reason for the dismissal, so it was automatically unfair.
Why this matters for similar claims
This case is a reminder that constructive dismissal claims can succeed when an employer unilaterally changes or reneges on key contractual terms. The fact that the employee had only four years' service did not prevent her claim – the key was the fundamental nature of the breach. Employees in similar situations should act promptly and clearly link their resignation to the employer's breach. The compensation awarded was relatively modest, reflecting the employee's duty to mitigate her loss, but the principle that employers cannot ignore contractual promises without consequences was firmly upheld.
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