Sales manager's constructive dismissal claim fails over sick pay and discipline dispute
A sales manager with 13 years' service resigned claiming loss of trust and confidence after a sick pay dispute and disciplinary warning. The tribunal rejected his constructive unfair dismissal claim, finding no fundamental breach of contract.
1 min read · Last updated 18 May 2026
Case details
- #constructive-dismissal
- #sick-pay-dispute
- #disciplinary-sanction
- #grievance-procedure
- #implied-term-trust-and-confidence
Key facts
- The claimant was employed as a sales manager from 9 April 2008 until his resignation on 19 October 2021.
- The claimant went off sick on 9 June 2021 and received only statutory sick pay.
- The respondent issued the claimant a written warning after an investigation into bullying allegations.
- The claimant raised a grievance on 16 August 2021, which was investigated by HR manager Kim Hobson.
- The grievance appeal was heard by an external consultant who recommended dismissal of the appeal.
- The claimant resigned on 19 October 2021, citing loss of trust and confidence.
Timeline
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Employment started
Claimant began employment as a sales manager.
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Exit interview with Simon Baptist
Simon Baptist alleged bullying by the claimant in his exit interview.
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Exit interview with Paul Breslin
Paul Breslin also alleged bullying by the claimant.
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Investigatory meeting
The respondent held an investigatory meeting with the claimant regarding the allegations.
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Claimant went off sick
Claimant went off sick with stress and anxiety, never returning to work.
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Disciplinary hearing
Disciplinary hearing held; claimant accompanied by colleague.
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Written warning issued
Claimant received a written warning for bullying and failure to manage.
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Redeployment offer
Claimant was offered a lesser role, which he considered insulting.
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Disciplinary appeal dismissed
Appeal against written warning dismissed by Anton Littler.
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Grievance raised
Claimant raised a formal grievance covering multiple issues.
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Grievance outcome
Kim Hobson issued a detailed response rejecting the grievance.
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Grievance appeal
Claimant appealed the grievance outcome.
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Appeal report
External consultant Tina Kinson recommended dismissal of the appeal.
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Grievance appeal dismissed
Respondent accepted the consultant's recommendation and dismissed the appeal.
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Resignation
Claimant resigned with immediate effect, citing loss of trust and confidence.
The legal issue
The tribunal had to decide whether the employer's failure to pay company sick pay, its disciplinary sanction, and its handling of the grievance together breached the implied duty of trust and confidence, entitling the employee to resign and claim constructive unfair dismissal.
The outcome
The tribunal dismissed the claims of constructive unfair dismissal, unauthorised deductions, and breach of contract.
The key reasons were:
- The failure to pay company sick pay was not a breach of contract because there was no contractual entitlement to it.
- The disciplinary warning was within the range of reasonable responses given the bullying allegations.
- The grievance process was thorough and the appeal was handled by an external consultant, so it did not breach trust and confidence.
No compensation was awarded as the claims failed.
Lessons & takeaways
- Check your employment contract carefully: if it doesn't guarantee company sick pay, your employer may only be obliged to pay statutory sick pay.
- A disciplinary sanction that is procedurally fair and within the range of reasonable responses is unlikely to be a fundamental breach of contract.
- Raising a grievance does not automatically protect you from a constructive dismissal claim failing if the employer handles it properly.
- Resigning in the heat of the moment without waiting for a grievance outcome can weaken a constructive dismissal case.
What this case shows
A sales manager with 13 years' service resigned after a dispute over sick pay, a disciplinary warning, and a grievance he felt was mishandled. He claimed constructive unfair dismissal, arguing that the employer's actions destroyed trust and confidence. The tribunal disagreed, finding that the employer had acted within its rights and had followed fair procedures.
What the employer did right
The employer had a clear disciplinary process, investigated the bullying allegations, and gave the employee a chance to respond. The grievance was investigated by an HR manager and appealed to an external consultant, which the tribunal considered thorough. The failure to pay company sick pay was not a breach because the contract did not guarantee it.
Why the claim failed
The tribunal found that none of the employer's actions, individually or together, amounted to a fundamental breach of contract. The employee's resignation was therefore not a constructive dismissal. This case shows that even long-serving employees may not succeed if the employer follows reasonable procedures and the contract does not promise the benefits the employee expected.
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