Respondent won Employment Tribunal · 2 June 2023

Branch manager loses constructive dismissal and race discrimination claim after failing to attend hearing

A branch manager who resigned claiming constructive dismissal and race discrimination has had all his claims dismissed by an employment tribunal, which also ordered him to repay £17,727.86 in overpaid commission.

1 min read · Last updated 18 May 2026

Case details

Key facts

  • The claimant was employed from 16 July 2012 as a branch manager.
  • The claimant was suspended after an incident on 2 July 2018 involving a former partner.
  • The claimant was dismissed for gross misconduct on 13 July 2018, but on appeal the dismissal was overturned and replaced with a final written warning.
  • The claimant resigned on 8 October 2018, claiming constructive dismissal.
  • The tribunal found that the respondent did not breach the implied term of trust and confidence.
  • The tribunal found that the claimant's allegations of race discrimination were not substantiated.

Timeline

  1. Employment start

    Claimant began employment with the respondent as a sales negotiator.

  2. Change to contractual details

    Claimant received a letter confirming new commission details including an underpin arrangement.

  3. Alleged bonus letter

    Claimant claims he was promised a £10,000 bonus if branch was profitable by end of Q2 2018.

  4. Incident with former partner

    An incident occurred between the claimant and his former partner, witnessed by a member of the public.

  5. Suspension

    Claimant was suspended on full pay pending investigation into the incident.

  6. Dismissal

    Claimant was dismissed for gross misconduct following a disciplinary hearing.

  7. Appeal outcome

    Appeal upheld, dismissal overturned and replaced with a final written warning.

  8. Return to work

    Claimant returned to work after sick leave.

  9. Resignation

    Claimant resigned, claiming constructive dismissal.

  10. Employment ended

    Claimant's employment ended.

The outcome

The tribunal dismissed the claimant's claims of constructive unfair dismissal, direct race discrimination, and breach of contract for a £10,000 bonus. It found that the employer had not breached the implied term of trust and confidence and that the discrimination allegations were unsubstantiated.

The tribunal also upheld the employer's counterclaim, ordering the claimant to repay £17,727.86 in overpaid commission. This sum was recoverable under the contractual underpin arrangement.

Lessons & takeaways

  • Attending the hearing is crucial — failing to attend without strong medical evidence can lead to your claim being dismissed in your absence.
  • Constructive dismissal requires a fundamental breach of contract by the employer; a flawed disciplinary process that is corrected on appeal may not amount to a breach.
  • Race discrimination claims need specific evidence linking treatment to race; general allegations are unlikely to succeed.
  • Commission clawback clauses can be enforceable if they are clearly agreed in the contract.
  • If you are unrepresented, ensure you comply with tribunal orders and provide timely evidence for any postponement requests.

A case derailed by non-attendance

This case illustrates the risks of pursuing an employment claim without legal representation and failing to attend the final hearing. The branch manager, who had six years' service, resigned in October 2018 claiming that his employer's conduct forced him out. He alleged that a disciplinary process leading to his dismissal (later reduced to a final written warning on appeal) and the disclosure of confidential details amounted to a fundamental breach of contract. He also claimed race discrimination and a £10,000 bonus.

However, the tribunal never reached the merits of most allegations because the claimant did not attend the hearing. Despite several postponement requests citing ill health, the tribunal found the medical evidence insufficient and decided to proceed in his absence. After hearing evidence from the respondent's witnesses, it concluded that the employer had not breached the implied term of trust and confidence. The discrimination claims were dismissed as unsubstantiated, and the bonus claim failed because no binding promise was proven.

What the employer did right

Sequence (UK) Limited successfully defended the claims by demonstrating that its disciplinary process, while initially flawed, was corrected on appeal. The tribunal noted that the employer had acted reasonably overall. The counterclaim for overpaid commission succeeded because the contractual underpin arrangement allowed recovery when employment ended.

Key takeaways for similar cases

For claimants, this case underscores the importance of attending hearings and providing robust medical evidence if unable to attend. For employers, it shows that a fair appeal process can remedy earlier procedural errors, and that clear contractual terms for commission clawbacks are enforceable.

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