Constructive dismissal claim fails over disputed commission agreement
An associate land director who resigned after his employer refused to pay £12,000 commission he claimed under an oral agreement lost his unfair dismissal claim, but won £2,585 for unpaid wages.
1 min read · Last updated 18 May 2026
Case details
- #constructive-dismissal
- #commission-structure
- #oral-agreement
- #unauthorised-deduction
- #grievance-procedure
Key facts
- Mr Marlow was employed from 4 March 2013 to 17 December 2021, initially as Senior Land Manager and later as Associate Land Director.
- In June 2020, Mr Marlow and Mr Stebbings discussed a new commission structure, but the tribunal found it was not a binding agreement.
- Mr Marlow submitted a commission claim for the Petersfield site for £12,000 based on the June 2020 discussion.
- The respondent refused to pay the £12,000 but was contractually bound to pay £2,585 under the 2015 commission structure.
- Mr Marlow resigned on 17 November 2021 because the respondent refused to pay the £12,000 commission.
Timeline
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Employment start
Mr Marlow started work as Senior Land Manager.
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2015 commission structure
The respondent set out a commission structure in writing, including acreage and discount bonuses.
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Monthly commission agreed
The respondent agreed to pay commission monthly instead of annually.
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Updated contract
Mr Marlow received a new contract of employment with all main terms.
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June 2020 discussion
Mr Marlow and Mr Stebbings discussed a potential new commission structure; the tribunal found it was not binding.
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2021 commission structure introduced
A new commission structure was introduced, but the Petersfield site was excluded.
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Email complaint
Mr Marlow emailed concerns about the 2021 commission structure, which the tribunal did not treat as a formal grievance.
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Petersfield commission claim
Mr Marlow submitted a claim for £12,000 commission for the Petersfield site.
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Resignation
Mr Marlow resigned by email after the respondent refused to pay the £12,000 commission.
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Employment end
Mr Marlow's last day of employment.
The legal issue
The tribunal had to decide whether an oral discussion about a new commission structure formed a binding contractual term, and whether the employer's refusal to pay commission based on that discussion amounted to a fundamental breach entitling the employee to resign and claim constructive dismissal.
The outcome
The tribunal dismissed the constructive dismissal claim, finding that the June 2020 discussion was not a binding agreement. However, it upheld a claim for unauthorised deductions from wages, ordering the employer to pay £2,585 in commission due under the 2015 written structure.
- Unfair dismissal: Not well-founded, dismissed.
- Wrongful dismissal: Not well-founded, dismissed.
- Unauthorised deduction: Well-founded; respondent ordered to pay £2,585 gross.
Lessons & takeaways
- Oral discussions about changes to pay or commission are unlikely to be binding unless they are clear, certain, and intended to be contractually enforceable.
- If you believe you have a contractual right to a payment, ensure it is documented in writing and signed by both parties.
- Resigning in response to a disputed payment is risky; you must show that the employer's conduct amounted to a fundamental breach of contract.
- Even if a constructive dismissal claim fails, you may still recover wages that are contractually due under an existing written agreement.
When a handshake isn't enough
This case illustrates the danger of relying on informal discussions to change your contractual terms. The associate land director, with eight years' service, believed that a June 2020 conversation with his line manager had introduced a new commission structure with immediate effect. When he later claimed £12,000 under that structure for a site called Petersfield, the employer refused. He resigned, arguing that the refusal was a fundamental breach of contract.
The tribunal, however, found that the June 2020 discussion was not intended to be legally binding. It was a preliminary conversation about a possible future scheme. The employer had not implemented any new structure at that time, and the director's own subsequent conduct—such as continuing to work under the old system—undermined his claim that a binding agreement existed.
What the employer could have done differently
While the employer succeeded in defending the constructive dismissal claim, it still had to pay £2,585 in unpaid commission under the 2015 written structure. The tribunal found that the employer had made an unauthorised deduction from wages by failing to pay this amount. The employer could have avoided this by clearly documenting any changes to commission arrangements and by ensuring that payments due under existing contracts were made promptly.
Why this matters for similar claims
For employees, the key lesson is that oral agreements about pay are risky. To establish a binding contractual term, there must be clear evidence of an offer, acceptance, and an intention to create legal relations. For employers, the case is a reminder that even if you successfully defend a constructive dismissal claim, you may still be liable for unpaid wages if you fail to honour existing written terms. The outcome also highlights that tribunals will scrutinise the factual context carefully—here, the director's own actions contradicted his belief that a new binding structure was in place.
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