Constructive dismissal claim fails: cancer remission did not make performance management a breach of contract
A Contracts and Services Manager with 12 years' service who resigned after a performance improvement plan and grievance rejection lost his constructive unfair dismissal claim. The tribunal found no fundamental breach of contract.
1 min read · Last updated 18 May 2026
Case details
- #cancer-diagnosis
- #performance-improvement-plan
- #grievance-procedure
- #sole-employee
- #right-to-manage-company
Key facts
- The claimant was employed as Contracts and Services Manager from 1 January 2007, transferring to the respondent on 1 July 2013.
- The claimant was diagnosed with cancer in 2015 and received radiotherapy; he has been in remission since end of 2015.
- The respondent sought to revise the claimant's terms and conditions from November 2018, including stopping him from personally profiting from programming key fobs.
- The claimant refused to sign the revised contract, citing only the holiday year change as the outstanding issue.
- The claimant went off sick on 6 November 2019 and resigned on 18 March 2020, alleging constructive dismissal and discrimination.
- The tribunal found no breach of contract or discrimination; all claims were dismissed.
Timeline
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Employment started
Claimant began employment as Service Manager with Jaygate Developments Ltd.
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TUPE transfer to KOA RTM Co Ltd
Claimant's employment transferred to the respondent; he became Contracts and Services Manager with a salary increase to £27,000.
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Cancer diagnosis
Claimant diagnosed with cancer; underwent 30 radiotherapy sessions over six weeks; respondent supported him.
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Appraisal meeting and new contract proposed
Claimant given revised terms and conditions; instructed to stop programming fobs for personal gain.
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Final meeting on contract
Claimant refused to sign due to holiday year issue; respondent dropped further attempts to get signature.
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Performance improvement plan meeting
Claimant attended informal performance meeting; refused to sign PIP.
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Claimant went off sick
Claimant reported sick with work-related stress and anxiety; did not return to work.
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Grievance outcome
Respondent dismissed claimant's grievance; letter included reference to cancer diagnosis.
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Resignation
Claimant resigned, alleging constructive dismissal and discrimination.
The legal issue
The tribunal had to decide whether the employer's conduct — proposing contract changes, initiating a performance improvement plan, and handling a grievance — amounted to a repudiatory breach of contract, and whether any of that conduct was discriminatory on grounds of disability or age.
The outcome
The tribunal dismissed all claims. It found that the claimant was not constructively unfairly dismissed because there was no fundamental breach of contract. The employer's actions were within the range of reasonable responses. The disability discrimination claims failed because the employer did not know of the disability at the relevant times, and the age discrimination claim was not made out. The harassment claim also failed. No compensation was awarded.
Lessons & takeaways
- A performance improvement plan, even if unwelcome, is unlikely to be a breach of contract if it is applied fairly and without malice.
- Employers should ensure they have up-to-date knowledge of an employee's disability before any decision that could be discriminatory.
- Resigning without first giving the employer a chance to remedy an alleged breach can undermine a constructive dismissal claim.
- Length of service does not automatically protect an employee from being managed for performance issues.
- A grievance outcome that mentions a past illness does not automatically amount to discrimination if the reference is incidental and not linked to a protected act.
A long-serving manager's claim unravels
This case shows the limits of constructive dismissal law, even for an employee with 12 years' service and a history of cancer. The claimant, a Contracts and Services Manager for a right-to-manage company, resigned after a series of management actions he believed forced him out. The tribunal, however, found that the employer had not breached the implied term of trust and confidence.
The dispute began when the employer sought to revise the claimant's contract to stop him personally profiting from programming key fobs. The claimant refused to sign, citing a disagreement over holiday year changes. The employer did not press the issue. Later, an informal performance improvement plan was introduced, which the claimant also refused to sign. He went off sick with stress and later resigned after his grievance was rejected.
What the employer did right
The tribunal noted that the employer had supported the claimant through his cancer treatment in 2015 and had not raised the contract issue again after the initial refusal. The performance meeting was informal and not a disciplinary process. The grievance outcome, while mentioning the claimant's cancer, did not treat him unfavourably because of it. The tribunal found no evidence of discrimination or harassment.
Why the result matters
This case is a reminder that constructive dismissal requires a serious breach of contract, not just management actions that an employee finds stressful. Employers can manage performance and propose contract changes without automatically risking a constructive dismissal claim, provided they act reasonably and in good faith. For employees, the lesson is that resigning in the heat of the moment, without giving the employer a chance to put things right, can be fatal to a claim.
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