Respondent won Employment Tribunal · 31 May 2023

Constructive dismissal claim fails: no fundamental breach found after disciplinary and grievance process

An in-store service advisor with 15 years' service resigned claiming constructive unfair dismissal after a disciplinary warning and grievance process. The tribunal found no fundamental breach of trust and confidence, and the claim was dismissed.

1 min read · Last updated 18 May 2026

Case details

Key facts

  • The claimant worked as an in-store service advisor from October 2005 until her resignation on 3 March 2021.
  • She was disciplined in January 2020 for failing to follow the sickness reporting procedure on 16 December 2019.
  • The claimant covertly recorded conversations with colleagues, including one on 12 February 2020 where managers spoke inappropriately about her.
  • She raised a formal grievance on 23 March 2020, which was partially upheld; the respondent offered mediation but she declined.
  • The claimant resigned after a year of sick leave, claiming constructive unfair dismissal and breach of contract.
  • The tribunal found no fundamental breach of contract by the respondent.

Timeline

  1. Employment started

    Claimant commenced employment as an in-store service advisor at Currys Bromborough branch.

  2. First disciplinary hearing

    Claimant received a first written warning for using a company computer for personal shopping.

  3. Sickness absence

    Claimant reported sick via text; manager reminded her to call; she eventually called at 13:28.

  4. Investigation meeting

    Claimant attended an investigation meeting about the sickness reporting breach; she walked out initially but later returned.

  5. Disciplinary hearing

    Claimant attended a disciplinary hearing; she refused to provide call logs for an alleged 11:25 call.

  6. Disciplinary outcome

    Claimant received a first written warning for breaching the sickness reporting procedure.

  7. Covert recording incident

    Claimant recorded a conversation where managers made inappropriate comments about her.

  8. Sick leave started

    Claimant went off sick with work-related stress and anxiety; she never returned to work.

  9. Grievance raised

    Claimant submitted a formal grievance regarding bullying and disciplinary issues.

  10. Grievance outcome

    Grievance partially upheld; mediation and other options offered but claimant declined.

  11. Grievance appeal outcome

    Grievance appeal dismissed; claimant received the decision.

  12. Resignation

    Claimant resigned with immediate effect, citing constructive dismissal.

The outcome

The tribunal dismissed the claim of constructive unfair dismissal and the related breach of contract claim for notice pay.

The key reason was that the employer's conduct, viewed objectively, did not breach the implied term of trust and confidence. The disciplinary warning was within the range of reasonable responses, the grievance was properly investigated and partially upheld, and the employer offered mediation which the employee declined. The employee's long period of sick leave and resignation did not change this.

No compensation was awarded as the claims were not well-founded.

Lessons & takeaways

  • A single disciplinary warning, if justified, is unlikely to amount to a fundamental breach of contract even if it causes stress.
  • Employers who investigate grievances fairly and offer mediation can defend against constructive dismissal claims.
  • Employees who resign after a long sick leave may struggle to show they resigned in response to a specific breach.
  • Covert recording of conversations may undermine trust but does not automatically make the employer's conduct a breach.

What this case shows in practice

This case illustrates the high bar for constructive dismissal claims, especially where an employer has followed its own procedures. The employee, an in-store service advisor with 15 years' service, resigned after a year of stress-related sick leave, citing a disciplinary warning and a grievance process she felt was inadequate. However, the tribunal found that the employer's actions — including issuing a first written warning for failing to follow the sickness reporting procedure — were within the range of reasonable responses. The employer had also partially upheld her grievance and offered mediation, which she declined.

What the losing side could have done differently

The employee argued that the disciplinary process was unfounded and that managers bullied her, including making inappropriate comments that she covertly recorded. While the recording showed poor management behaviour, the tribunal noted that the employer had taken steps to address the grievance and offered a way forward. The employee's decision to decline mediation and remain on sick leave for a year before resigning weakened her case. A more proactive approach — such as engaging with mediation or raising concerns earlier — might have led to a different outcome.

Why the result matters for similar claims

This decision reinforces that constructive dismissal requires a fundamental breach of contract, not just poor management or workplace stress. Employers who follow fair procedures, investigate grievances, and offer solutions like mediation are likely to defend such claims successfully. For employees, the case highlights the importance of resigning promptly in response to a breach and not waiting too long, as delay can be seen as affirming the contract. The tribunal also emphasised that a long period of sick leave does not automatically make a resignation a constructive dismissal.

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