Constructive dismissal claim over unpaid overtime dismissed: contract allowed occasional extra hours
A former employee who resigned and claimed constructive unfair dismissal after working unpaid overtime has had his claim dismissed by an employment tribunal.
1 min read · Last updated 18 May 2026
Case details
- #constructive-dismissal
- #unpaid-overtime
- #national-minimum-wage
- #contract-interpretation
- #time-limits
Key facts
- The claimant resigned and claimed constructive unfair dismissal.
- The claimant also claimed unpaid overtime for work between January and June 2021.
- The employment contract stated salary compensated for occasional additional hours and guaranteed at least National Minimum Wage.
- The tribunal found the claimant was not paid less than the minimum wage.
- The tribunal held there was no breach of contract in requiring additional hours.
Timeline
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Start of overtime period
Claimant worked additional hours from January to June 2021.
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End of overtime period
The period of additional hours ended.
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Hearing day 1
First day of the substantive hearing.
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Hearing day 2 and judgment
Second day of hearing; oral judgment dismissing claims.
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Judgment sent to parties
Written record of judgment sent.
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Reconsideration application
Claimant applied for reconsideration via email.
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Reconsideration refused
Employment Judge Bax refused the application.
The legal issue
The tribunal had to decide whether the former employee was constructively unfairly dismissed and whether he was entitled to unpaid overtime for additional hours worked between January and June 2021.
The outcome
The tribunal dismissed both claims. It held that the employment contract allowed for occasional additional hours and that the salary was set at a level that compensated for this, while also guaranteeing at least the National Minimum Wage. The tribunal found that the claimant was not paid less than the minimum wage and that there was no breach of contract in requiring additional hours. No compensation was awarded.
Lessons & takeaways
- Check your employment contract carefully: if it says your salary compensates for occasional overtime, you may not be entitled to extra pay for additional hours.
- Constructive dismissal requires a fundamental breach of contract by the employer; a dispute over overtime that is permitted by the contract is unlikely to succeed.
- If you work regular overtime that goes beyond what is 'occasional', you may need to argue that the contract term is not being applied as intended, but this can be difficult to prove.
What this case shows in practice
A former employee of cmostores.com Limited resigned and claimed constructive unfair dismissal, arguing that he was required to work unpaid overtime between January and June 2021. He believed this breached his contract and amounted to a fundamental breach that justified his resignation. However, the tribunal found that his employment contract clearly stated that his salary was set at a level to compensate for occasional additional hours and that he would not be paid less than the National Minimum Wage. The tribunal concluded that the overtime worked did not breach the contract, and he was not paid below the minimum wage.
What the losing side could have done differently
The claimant represented himself and argued that the overtime was not occasional. However, the tribunal accepted the employer's interpretation of the contract. To have succeeded, the claimant would have needed to show that the overtime was so excessive or regular that it fell outside the 'occasional' provision, or that the contract was not being honoured in practice. Without clear evidence of a breach, the claim was bound to fail.
Why the result matters for similar claims
This case reinforces the importance of contract terms in overtime disputes. Employers can rely on well-drafted contracts that allow for occasional additional hours, provided they still meet minimum wage requirements. Employees who believe they are being asked to work excessive unpaid hours should first check their contract and consider whether the overtime truly goes beyond what was agreed. Constructive dismissal claims based on unpaid overtime are unlikely to succeed if the contract permits the extra hours and the employee remains above the minimum wage.
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