Constructive dismissal claim fails after email exchange: no breach of trust and confidence
A general manager with 28 years' service resigned after receiving emails from her boss suggesting she step down if she lacked confidence in the company. The tribunal found no breach of trust and confidence and dismissed her constructive unfair dismissal claim.
1 min read · Last updated 18 May 2026
Case details
- #constructive-dismissal
- #trust-and-confidence
- #resignation
- #email-exchange
- #no-grievance
Key facts
- Ms Bates resigned on 24 June 2021 after receiving emails from Mr Michaluk on 23 June 2021.
- She had been employed since 1 August 1993 as general manager and transport manager.
- The respondent purchased the company in September 2020 and wanted Ms Bates to remain.
- Ms Bates did not raise a grievance before resigning.
- The tribunal found no breach of the implied term of trust and confidence.
Timeline
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Employment start
Ms Bates commenced employment with the respondent as a secretary.
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Became director and shareholder
Ms Bates became a director and shareholder, later majority shareholder.
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Company purchased by MMS
Marketing Management Services Limited, owned by Mr Michaluk, bought the majority shareholding.
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Mr Michaluk visits Colne site
Mr Michaluk explained he would 'work on the business' and Ms Bates 'would work in the business'.
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Operator's licence dispute
Disagreement over renewal of operator's licence; Ms Bates felt humiliated by Mr Michaluk's email.
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Email about recovery loan
Ms Bates expressed concern about taking a government recovery loan and company solvency.
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Emails from Mr Michaluk
Mr Michaluk sent two emails suggesting Ms Bates resign if she lacked confidence in the company.
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Resignation
Ms Bates resigned as director and employee with immediate effect.
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Resignation accepted
Mr Michaluk accepted the resignation and proposed buying her shares.
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Claim presented
Ms Bates presented her claim to the tribunal.
The legal issue
The tribunal had to decide whether the employer's conduct on 23 June 2021 breached the implied term of trust and confidence, entitling the claimant to resign and claim constructive unfair dismissal.
The outcome
The tribunal dismissed the claimant's complaint of constructive unfair dismissal.
Key reasons:
- The emails from the managing director did not, objectively, destroy or seriously damage trust and confidence.
- The claimant had not raised a grievance before resigning, which weakened her case.
- The tribunal found the employer had reasonable and proper cause for its actions.
No compensation was awarded as the claim failed.
Lessons & takeaways
- Before resigning and claiming constructive dismissal, you should usually raise a formal grievance to give your employer a chance to address the issue.
- A single heated email exchange is unlikely to be enough to prove a fundamental breach of trust and confidence, especially if the employer has reasonable cause.
- Long service does not automatically make a constructive dismissal claim stronger if the employer's conduct is not objectively serious.
- If you disagree with your employer's business decisions, consider raising concerns through proper channels rather than resigning immediately.
When an email isn't enough to resign
This case shows how difficult it can be to win a constructive dismissal claim based on a short email exchange. The claimant, a general manager with 28 years' service, resigned the day after receiving two emails from her managing director. The emails suggested she should resign if she lacked confidence in the company's financial direction. She felt humiliated and left immediately.
What the tribunal looked at
The tribunal focused on whether the employer's conduct on 23 June 2021 was so serious that it destroyed the trust and confidence needed for the employment relationship. It noted that the claimant had not raised a grievance before resigning, which is often a key step in constructive dismissal cases. The tribunal also found that the managing director had reasonable cause for his emails – the company was navigating financial pressures during the pandemic, and the claimant had expressed serious concerns about solvency.
Why the claim failed
The tribunal decided that the emails, while blunt, did not cross the line into a fundamental breach. The claimant had not given her employer a chance to resolve the issue, and the context of the pandemic meant the employer's actions were not unreasonable. The case is a reminder that constructive dismissal claims require more than a moment of frustration – there must be a clear, serious breach that leaves no option but to resign.
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