12-year employee resigns over grievance handling: constructive dismissal and remedy
A housing association was found to have constructively dismissed a long-serving employee after mishandling his grievance. The tribunal awarded over £11,000 in compensation, including a basic award of £6,096 and a compensatory award of £1,073.
1 min read · Last updated 18 May 2026
Case details
Key facts
- The claimant resigned on 10 February 2021 after the respondent failed to properly handle his grievance.
- The claimant had been off sick since December 2020 and the respondent had proposed adjustments to return him to work.
- The tribunal found the respondent was in repudiatory breach of contract due to its handling of the grievance.
- The claimant became self-employed as a carpenter from April 2021.
- The tribunal found a 90% chance the claimant would have returned to work by 10 March 2021 if not dismissed.
- The claimant could have obtained alternative employment at similar pay within 20 weeks of resignation.
Timeline
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Respondent sends adjustment letter
The respondent sent a letter to the claimant setting out adjustments to accommodate his return to work in the Empty Homes Team.
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Agreement to obtain medical reports
It was agreed that the respondent would obtain reports from the claimant's GP and consultant, followed by an Occupational Health report.
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Claimant resigns
The claimant resigned, citing the respondent's failure to handle his grievance properly.
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Likely return to work date
The tribunal found that, but for the dismissal, the claimant would have returned to work on this date.
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Claimant starts self-employment
The claimant began working as a self-employed carpenter.
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End of loss period
The tribunal determined that the claimant's loss caused by the dismissal ended on this date, as he could have found alternative employment by then.
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Liability hearing begins
The tribunal heard the liability case over five days.
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Liability judgment
The tribunal found the claimant was unfairly dismissed and awarded breach of contract damages.
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Remedy hearing
The tribunal heard evidence and submissions on remedy.
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Remedy judgment
The tribunal issued its remedy judgment, awarding basic and compensatory awards.
The legal issue
The tribunal had to decide the remedy for an unfair constructive dismissal, including the amount of compensation and whether any deductions or uplifts applied, given the employee's subsequent self-employment and the likelihood of returning to work.
The outcome
The tribunal awarded the former employee a total of £11,233.33 in compensation for unfair dismissal and breach of contract.
- Basic award: £6,096.12 (agreed)
- Compensatory award: £1,073.13 (after a 10% Polkey reduction for the chance he would have been fairly dismissed anyway)
- Breach of contract damages: £4,064.08
The tribunal found that the employee would have returned to work by 10 March 2021 if not dismissed, but that he could have found alternative employment within 20 weeks of resigning, limiting his loss period.
Lessons & takeaways
- Constructive dismissal claims require a serious breach of contract by the employer, such as mishandling a grievance.
- Mitigation of loss is crucial: employees should actively seek work after resigning, or compensation may be reduced.
- The Polkey reduction allows tribunals to reduce compensation if there was a chance the employee would have been fairly dismissed anyway.
- Keep records of all communications and attempts to resolve issues, as these can be key evidence in constructive dismissal cases.
- Seek legal advice early if you believe your employer's conduct amounts to a fundamental breach of contract.
What this case shows
This case highlights how a breakdown in the grievance process can lead to a successful constructive dismissal claim. The employee, who had 12 years' service, resigned after his employer failed to properly handle his grievance. The tribunal found that this failure was a repudiatory breach of contract, making his resignation a constructive dismissal.
What could have been done differently
Sovereign Housing Association Ltd could have avoided this outcome by handling the grievance promptly and fairly. Instead, the delay and poor process led to a breach of trust. Employers should ensure grievances are taken seriously and resolved in a timely manner, especially when an employee is on sick leave and adjustments are being considered.
Why the result matters
The case also illustrates how compensation is calculated in constructive dismissal claims. The tribunal applied a 10% Polkey reduction, reflecting the chance that the employee might have been fairly dismissed anyway. It also considered the employee's duty to mitigate his loss by seeking work, limiting his loss period to 20 weeks. The total award of £11,233.33 shows that while constructive dismissal can succeed, compensation may be modest if the employee quickly finds other work.
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