Constructive dismissal over lost bonus: former employee awarded £18,731
A former employee who resigned after losing a bonus was awarded £18,731 for constructive unfair dismissal. The tribunal found the employer's conduct amounted to a fundamental breach of contract.
1 min read · Last updated 19 May 2026
Case details
Key facts
- The claimant was employed from 1 April 2021 to 31 March 2023.
- The claimant resigned and claimed constructive unfair dismissal.
- The respondent did not attend the hearing or present a response.
- The tribunal found the complaint of constructive unfair dismissal well founded.
- The claimant found new employment from 12 June 2023 at a lower net weekly pay.
Timeline
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Employment started
Claimant began employment with the respondent.
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Employment ended
Claimant resigned, effective this date, claiming constructive dismissal.
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Loss period begins
Start of the period of loss for compensation calculation.
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New employment started
Claimant started new job with lower net weekly pay of £442.
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Tribunal hearing and judgment
Employment Judge Slater heard the case and awarded £18,731 compensation.
The legal issue
The tribunal had to decide whether the former employee was constructively unfairly dismissed and, if so, what compensation was payable for the loss of earnings and benefits.
The outcome
The tribunal ruled in favour of the former employee, finding that the employer's conduct amounted to a constructive unfair dismissal.
Compensation was calculated as follows:
- Basic award: £1,142
- Compensatory award: £17,589
- Total: £18,731
The compensatory award included:
- Loss of earnings and bonus from resignation to new job start: £6,447
- Ongoing loss after new job (lower pay and lost bonus): £2,528
- Future loss of bonus and lower pay for two years: £8,064
- Loss of statutory rights: £500
- Job hunting expenses: £50
Lessons & takeaways
- If you resign in response to a fundamental breach by your employer, you may still claim constructive unfair dismissal even if the employer does not defend the claim.
- Compensation can include future loss of earnings and bonuses, not just the period up to the hearing.
- You must take reasonable steps to find a new job to mitigate your loss, but a lower-paying job will still allow you to claim the difference in pay.
- Keep records of job hunting expenses, as they can be claimed as part of compensation.
What this case shows in practice
This case illustrates how a constructive dismissal claim can succeed when an employer's actions destroy the trust and confidence in the employment relationship. The former employee resigned after the employer failed to pay a bonus that was expected, which the tribunal treated as a fundamental breach of contract. Because the employer did not attend the hearing or present a defence, the claim was effectively uncontested, but the tribunal still carefully assessed the compensation.
What the losing side could have done differently
The employer could have avoided this outcome by addressing the employee's concerns about the bonus and maintaining open communication. By failing to respond to the claim, they lost the opportunity to argue that there was no breach or that the employee had not mitigated their loss. Employers should always engage with tribunal proceedings, even if they believe the claim is weak, to ensure their side of the story is heard.
Why the result matters for similar claims
This decision shows that constructive dismissal claims can succeed when an employer's conduct, such as withholding a promised bonus, amounts to a repudiatory breach. The compensation awarded included not only past losses but also future losses over two years, reflecting the ongoing impact of the dismissal. It also highlights the importance of mitigation: the employee found a new job quickly, but because it paid less, they were entitled to the difference. This case serves as a reminder that employees who resign in response to a fundamental breach may still be entitled to significant compensation, even if they find new work.
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