Constructive dismissal after commission withheld and ultimatum given
An employee with 8 years' service was constructively dismissed after his employer withheld sales commission and gave him an ultimatum to pay money or be treated as resigned. The tribunal awarded £55,267.37.
1 min read · Last updated 18 May 2026
Case details
Key facts
- The claimant was employed by the first respondent from 2011 until 24 August 2019.
- The claimant was not provided with a written contract or written particulars of employment.
- The first respondent told the claimant to stay home without pay on 24 August 2019, which constituted dismissal.
- The first respondent withheld sales commission and holiday pay from the claimant.
- The claimant was entitled to 7 weeks' notice but received none.
- The first respondent failed to attend the hearing despite warnings.
Timeline
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Employment started
The claimant began working for the first respondent.
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German share demand
The claimant received a letter from a German insolvency practitioner demanding payment for shares.
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Commission withheld
The first respondent began withholding the claimant's sales commission payments.
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Sick leave
The claimant was signed off sick due to stress until 20 August 2019.
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Ultimatum
The first respondent sent a text giving the claimant a deadline to pay money or be treated as resigned.
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Dismissal
The claimant was told to stay home without pay, effectively dismissed.
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Unpaid wages
The claimant emailed about unpaid August wages but received no response.
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Removed from WhatsApp
The first respondent deleted the claimant from the work WhatsApp group.
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Previous hearing adjourned
A previous hearing was adjourned due to the respondents' non-attendance.
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Final hearing
The tribunal heard the case and found in favour of the claimant.
The legal issue
The tribunal had to decide whether the employee was constructively dismissed, wrongfully dismissed, and whether unlawful deductions were made from his wages, as well as who his actual employer was.
The outcome
The tribunal found that the employee was unfairly and wrongfully constructively dismissed by the first respondent, Mr X Zheng. It also found that the employer made unlawful deductions from wages by failing to pay holiday pay and sales commission, and failed to provide written particulars of employment.
Compensation breakdown:
- Basic award: £4,462.50
- Compensatory award: £40,903.20
- Breach of contract (notice pay): £4,222.61
- Holiday pay: £2,202.48
- Sales commission: £1,179.00
- Failure to provide written particulars: £2,100.00
- Total: £55,267.37
Lessons & takeaways
- If your employer withholds pay or commission without good reason, that can be a fundamental breach of contract allowing you to claim constructive dismissal.
- An ultimatum demanding payment of money under threat of being treated as resigned is likely to be a repudiatory breach.
- Employers must provide written particulars of employment; failure to do so can result in additional compensation of up to 4 weeks' pay.
- If your employer tells you to stay home without pay, that may be a dismissal in itself.
This case shows how a breakdown in trust and confidence can lead to a successful constructive dismissal claim. The employee, who had worked for the business for eight years, was suddenly told to pay money to his employer or be treated as resigned. When he was signed off sick with stress, the employer then told him to stay home without pay, effectively ending his employment.
What the employer did wrong
The employer withheld the employee's sales commission without explanation and failed to pay holiday pay. The ultimatum text message was a clear repudiatory breach, and the instruction to stay home without pay was a dismissal. The employer also failed to provide a written contract or written particulars, which led to an additional award.
Why the result matters
This case is a reminder that constructive dismissal claims can succeed when an employer's conduct goes to the root of the contract. The tribunal awarded over £55,000, reflecting the employee's length of service, lost earnings, and the employer's failure to follow basic employment law obligations. The employer's failure to attend the hearing meant the tribunal accepted the employee's evidence unchallenged.
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