Constructive dismissal claim fails but unauthorised deductions and breach of contract succeed
A former employee's constructive unfair dismissal claim was dismissed, but the tribunal upheld claims for breach of contract and unauthorised wage deductions, awarding £2,909.40.
1 min read · Last updated 18 May 2026
Case details
- #constructive-dismissal
- #breach-of-contract
- #unauthorised-deductions
- #written-statement-penalty
Key facts
- The claimant resigned in response to the respondent's conduct.
- The respondent failed to provide a written statement of employment particulars.
- The respondent made unauthorised deductions from the claimant's wages.
- The claimant was not permitted to work her notice period or paid in lieu.
- The respondent's director behaved abusively towards the tribunal judge.
Timeline
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Respondent notified of hearing
The respondent was given notice of the final hearing scheduled for 6 January 2022.
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First final hearing (respondent absent)
The tribunal proceeded in the respondent's absence after the director shouted at and swore at the judge. Judgment was given in favour of the claimant.
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Respondent applied for reconsideration
The respondent emailed a complaint which was treated as an application for reconsideration.
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Reconsideration hearing
The tribunal revoked the earlier judgment and made case management orders, but confirmed the preparation time order of £820.
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Final hearing (relisted)
The tribunal heard the case over two days with both parties present.
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Judgment given
The tribunal dismissed the unfair dismissal claim but upheld breach of contract and unlawful deduction claims, awarding £2,909.40.
The legal issue
The tribunal had to decide whether the employee was constructively unfairly dismissed, meaning whether the employer's conduct was so serious that it effectively forced her to resign. It also considered claims for breach of contract (failure to give notice or pay in lieu) and unlawful deductions from wages.
The outcome
The tribunal dismissed the constructive unfair dismissal claim, finding that while the employer's conduct was poor, it did not reach the legal threshold of a fundamental breach of contract that would justify resignation. However, the employer was found to have breached the employment contract by not allowing the employee to work her notice period or paying in lieu, and also made unauthorised deductions from her wages.
Compensation awarded:
- Breach of contract: £1,719.24 (notice pay)
- Unauthorised deductions: £1,190.16
- Total: £2,909.40
Lessons & takeaways
- Constructive dismissal claims require a fundamental breach of contract by the employer; poor management or unfair treatment may not be enough.
- Employers must provide a written statement of employment particulars or face penalties.
- Unauthorised deductions from wages are unlawful and can be claimed back even if the employment has ended.
- Failing to allow an employee to work their notice period or pay in lieu is a breach of contract.
What this case shows in practice
This case illustrates the high bar for constructive dismissal claims. The employee resigned after her employer's conduct, which included failing to provide a written employment contract, making unauthorised deductions from her wages, and not allowing her to work her notice period. However, the tribunal decided that these actions, while wrong, did not collectively amount to a fundamental breach of contract that would justify her resignation as constructive dismissal. This means that even when an employer behaves badly, the employee must show that the breach was so serious that it destroyed the trust and confidence in the employment relationship.
What the losing side could have done differently
The employer, The Chair (Buckingham) Limited, could have avoided the claims entirely by providing a written statement of employment particulars, paying wages correctly, and allowing the employee to work her notice or paying in lieu. The director's abusive behaviour towards the tribunal judge also harmed the employer's credibility. For employees, this case is a reminder that resigning in response to poor treatment does not automatically lead to a successful constructive dismissal claim. It is crucial to seek legal advice before resigning, as the legal test is strict.
Why the result matters for similar claims
This decision reinforces that constructive dismissal is not a remedy for all employer misconduct. Employees considering resignation should ensure they have evidence of a fundamental breach, such as a serious breach of contract or a clear breakdown in trust. The successful claims for breach of contract and unauthorised deductions show that employees can still recover losses for specific contractual breaches even if the overall dismissal claim fails. The total award of £2,909.40, while modest, highlights that employers cannot ignore basic contractual and statutory obligations.
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