Constructive dismissal after grievance ignored: HR focused on exit, not resolution
A UK Head of EHS resigned after her employer ignored her grievance and threatened sick pay. The tribunal found constructive unfair dismissal and wrongful dismissal, with remedy to be decided.
1 min read · Last updated 18 May 2026
Case details
- #constructive-dismissal
- #breach-of-implied-term
- #grievance-handling
- #final-straw
- #performance-management
- #micromanagement
- #relocation-costs
Key facts
- The claimant was UK Head of EHS at the respondent's Morpeth site, earning £102,500 per year.
- A new Managing Director, Terry Cooke, joined in November 2021 and on 26 January 2022 presented the claimant with a 'setting expectations' document containing serious criticisms and new reporting requirements.
- The claimant submitted a grievance on 2 February 2022, but the respondent focused on exit negotiations rather than resolving the issues.
- The respondent delayed the grievance hearing and refused the claimant's request for a remote hearing or written process while she was on sick leave for stress.
- An email from HR on 9 March 2022 threatening sick pay consequences was the final straw, leading the claimant to resign on 10 March 2022.
- The respondent deducted £5,782 from the claimant's final wages for relocation costs, which the tribunal found was authorised by a contractual term.
Timeline
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Claimant started employment
Claimant began as UK Head of EHS at Morpeth site, salary £102,500, with relocation assistance.
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Mid-year review positive
Claimant's mid-year review by then MD Robert Haxton rated her as meeting expectations, noting 'big improvement' in EHS.
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New MD Terry Cooke joined
Terry Cooke replaced Robert Haxton as Managing Director and became claimant's line manager.
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Setting expectations meeting
Mr Cooke presented a pre-prepared document criticising claimant's performance and imposing micromanagement requirements.
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Claimant submitted grievance
Claimant submitted a formal grievance about Mr Cooke's conduct, stating she felt forced to consider leaving.
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HR call about resignation
HR Director Kerry Hardy called claimant to discuss exit strategy rather than resolving grievance.
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Meeting with HR
Ms Hardy again focused on exit, refused to change reporting line; claimant left early due to stress.
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Final straw email
Ms Hardy refused written grievance process, delayed hearing to April, and threatened sick pay consequences.
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Claimant resigned
Claimant resigned with immediate effect, citing breach of trust and confidence.
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Deduction from wages
Respondent deducted £5,782 from final wages for relocation costs.
The legal issue
The tribunal had to decide whether the employer's actions, including a critical performance meeting, failure to properly handle a grievance, and an email threatening sick pay consequences, breached the implied term of trust and confidence, making the resignation a constructive dismissal.
The outcome
The tribunal found that the claimant was constructively unfairly dismissed and wrongfully dismissed.
- The respondent breached the implied term of trust and confidence by:
- Presenting a pre-prepared 'setting expectations' document with serious criticisms without prior warning.
- Focusing on exit negotiations rather than resolving the claimant's grievance.
- Delaying the grievance hearing and refusing reasonable adjustments (remote hearing or written process) while the claimant was on sick leave.
- Sending an email on 9 March 2022 threatening sick pay consequences, which was the final straw.
- The claimant's resignation on 10 March 2022 was in response to this breach.
- The deduction of £5,782 for relocation costs was lawful as it was authorised by a contractual term.
- Compensation is to be determined at a remedy hearing.
Lessons & takeaways
- If you raise a grievance, your employer must take it seriously and not use it as an opportunity to push for your exit — that can be a breach of trust.
- Refusing reasonable adjustments to the grievance process (like a remote hearing) while you are on sick leave may be seen as unreasonable and contribute to a constructive dismissal claim.
- A single email threatening sick pay can be the 'final straw' if it follows a series of breaches of trust.
- Keep records of all communications and any refusals of adjustments — they are key evidence in constructive dismissal claims.
What this case shows
This case illustrates how an employer's failure to handle a grievance properly can lead to a successful constructive dismissal claim. The claimant, a senior manager with two years' service, was presented with a pre-prepared document criticising her performance shortly after a new managing director joined. When she raised a grievance, HR immediately shifted focus to exit negotiations rather than addressing her concerns. The tribunal found this approach, combined with delays and a refusal to accommodate her sick leave, amounted to a fundamental breach of trust.
What the employer could have done differently
The respondent could have avoided liability by treating the grievance as a serious issue to be resolved, rather than as a trigger for exit discussions. They should have offered a fair process, including reasonable adjustments for the claimant's stress-related absence. The final email threatening sick pay consequences was particularly damaging; a more supportive approach would have been appropriate given the circumstances.
Why this matters
This decision reinforces that constructive dismissal claims can succeed even where the employee has relatively short service, if the employer's conduct is sufficiently serious. It also highlights that the 'final straw' can be a relatively minor act if it follows a pattern of behaviour. Employers should be aware that mishandling a grievance — especially by focusing on exit rather than resolution — can be a costly mistake.
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