Constructive dismissal claim fails but holiday pay awarded
A trainee manager who resigned claiming constructive dismissal lost his case, but the tribunal awarded £140 for unpaid holiday pay.
2 min read · Last updated 18 May 2026
Case details
- #constructive-dismissal
- #holiday-pay
- #overtime
- #training-fees
- #unlawful-deduction
Key facts
- The claimant was employed from 2 April 2019 until 20 April 2022.
- The claimant transferred to Yeovil in December 2021 and returned to Newton Abbot in March 2022.
- The tribunal found the claimant returned to the same role and was not demoted.
- On 16 April 2022 the claimant arrived late and was asked to leave due to disruptive behaviour.
- The meeting on 19 April 2022 was unsatisfactory but did not amount to a breach of trust and confidence.
- The claimant resigned on 20 April 2022.
Timeline
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Employment started
Claimant began working for the respondent.
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Transferred to Yeovil
Claimant moved to Yeovil as a Dispatch Supervisor.
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Returned to Newton Abbot
Claimant returned to Newton Abbot, claiming he was demoted.
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Incident at work
Claimant arrived late, was asked to stop personal calls, and was sent home.
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Investigatory meeting
Meeting held regarding the 16 April incident; meeting ended without resolution.
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Resignation
Claimant resigned, citing constructive dismissal.
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ET1 presented
Claimant presented his claim to the tribunal.
The legal issue
The tribunal had to decide whether the employer's actions—including an alleged demotion, health and safety concerns, and a poorly handled meeting—destroyed trust and confidence, and whether unlawful deductions were made from wages.
The outcome
The tribunal dismissed the claims of constructive unfair dismissal, unlawful deduction for 13.5 hours' pay, and unlawful deduction for training fees. However, it upheld a claim for unpaid holiday pay of £140.
- Constructive dismissal: not well founded
- Unlawful deduction (13.5 hours): not well founded
- Unlawful deduction (training fees): not well founded
- Unpaid holiday pay: £140 awarded
Lessons & takeaways
- A single poorly handled meeting is unlikely to be enough to prove constructive dismissal unless it is the 'last straw' in a series of serious breaches.
- Returning to the same role after a transfer is not a demotion if the duties and responsibilities remain substantially the same.
- Employers must ensure they pay all accrued holiday on termination, even if the employee resigns.
- Training fee deductions must be clearly agreed in writing to be lawful.
A resignation that didn't amount to constructive dismissal
This case shows how difficult it can be to prove constructive unfair dismissal. The trainee manager resigned after a series of events he believed fundamentally broke the trust between him and his employer, Joyners Plants Limited. He pointed to an alleged demotion when he returned from a transfer, health and safety concerns, and a poorly handled investigatory meeting as the final straw.
However, the tribunal found that the employer had not acted in a way that destroyed trust and confidence. The manager returned to the same role he had before the transfer, so there was no demotion. The health and safety issues were not proven to be a breach. And while the meeting on 19 April 2022 was unsatisfactory, it was not so serious as to justify resignation as a constructive dismissal.
What the employer could have done differently
The employer could have handled the meeting more carefully, ensuring it was concluded properly and that the employee felt heard. However, the tribunal noted that the meeting was investigatory, not disciplinary, and the employer had not yet made any decisions. A clearer communication about the employee's return to role might have avoided the perception of demotion.
The holiday pay claim succeeded
The one part of the claim that succeeded was the unlawful deduction for unpaid holiday pay. The employer had not paid the manager for accrued but untaken holiday when he resigned. The tribunal ordered payment of £140. This is a reminder that holiday pay is a legal entitlement that must be paid on termination, regardless of the circumstances of the resignation.
Why this matters for similar claims
Employees considering a constructive dismissal claim need to show a serious breach of contract that left them with no choice but to resign. A series of minor issues, even if frustrating, may not meet that high threshold. On the other hand, employers must ensure they follow proper procedures and pay all sums due on termination, including holiday pay.
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