Constructive dismissal after unilateral cut to hours and pay: a breach of trust that went too far
A senior carer with 14 years' service was constructively dismissed after her employer unilaterally reduced her hours and pay, then suspended her over alleged holiday pay fraud. The tribunal awarded £41,039 in compensation.
1 min read · Last updated 18 May 2026
Case details
Key facts
- The claimant was employed from 7 February 2004 until her resignation on 20 April 2018.
- On 19 December 2017, the respondent unilaterally reduced the claimant's contractual hours from up to 55 per week to up to 48 per week and reduced her pay rate for hours over 48 to £10 per hour.
- The claimant was suspended on 21 March 2018 on allegations of fraudulent claims for annual leave payments.
- During an investigation meeting on 27 March 2018, the claimant was asked about her immigration status and passport, which was irrelevant to the allegations.
- The claimant resigned on 20 April 2018 citing constructive dismissal, race discrimination, and breach of contract.
- The tribunal found the claimant was constructively and unfairly dismissed, but her race discrimination claims failed.
Timeline
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Employment started
Claimant began working at Jasmine Nursing Home as a Carer.
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Resignation offered and withdrawn
Claimant offered a job elsewhere and resigned, but was persuaded to stay with a pay rise to £13 per hour and promise of paid nursing tuition fees.
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Contract amendment
Claimant's hourly rate increased to £13 per hour; job title changed to Manager's Assistant and Training Co-ordinator.
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Further pay rise
Claimant's hourly rate increased to £15.50 per hour.
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Disciplinary hearing of colleague
Claimant attended and gave evidence at the disciplinary hearing of Mr CH, which she believed led to a change in treatment by the respondent.
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Unilateral contract variation
Dr Denning emailed the claimant, reducing her contractual hours to 48 per week and capping her pay for carer duties at £10 per hour.
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Payroll incident
Claimant submitted payroll on her day off; respondent later alleged fraudulent claims for annual leave payments.
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Suspension
Claimant was suspended pending investigation into alleged fraudulent claims.
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Investigation meeting
Claimant was questioned about her immigration status and asked to repay £50,000, which the tribunal found was a breach of trust and confidence.
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Resignation
Claimant resigned with immediate effect, citing constructive dismissal, race discrimination, and breach of contract.
The legal issue
The tribunal had to decide whether the employer's conduct — including a unilateral pay cut, suspension on questionable grounds, and an investigation that strayed into immigration status — was so serious that it destroyed the trust and confidence needed for the employment relationship to continue.
The outcome
The tribunal found that the claimant was constructively and unfairly dismissed, and also wrongfully dismissed. Her claims for race discrimination were dismissed.
Key reasons:
- The unilateral reduction of hours and pay on 19 December 2017 was a fundamental breach of contract.
- The investigation into alleged fraudulent holiday pay claims was flawed, and the demand to repay £50,000 was unreasonable.
- Asking about her immigration status during the investigation was irrelevant and contributed to the breach of trust.
Compensation:
- Basic award: £7,112
- Compensatory award: £18,690
- Total: £41,039 (including other elements)
Lessons & takeaways
- Employers cannot unilaterally change a long-serving employee's contractual hours and pay without agreement — doing so is a fundamental breach of contract.
- Investigations must stay focused on the allegations; irrelevant questions about immigration status can undermine the process and contribute to a constructive dismissal claim.
- Demanding repayment of large sums without proper evidence or process is likely to be seen as unreasonable and a breach of trust.
- Constructive dismissal claims require the employee to resign in response to the breach — delay may weaken the claim, but a series of events can cumulatively justify resignation.
When a long-serving employee is pushed to resign
This case shows how a series of management decisions, each perhaps questionable on its own, can together destroy the trust needed for an employment relationship. The claimant had worked for Jasmine Care for 14 years, rising from carer to senior carer and manager's assistant. In December 2017, without warning or agreement, her employer cut her contractual hours from up to 55 per week to 48, and reduced her pay for overtime to £10 per hour — a significant change that the tribunal later called a fundamental breach of contract.
What the employer did wrong
The unilateral pay cut was only the start. Three months later, the claimant was suspended over allegations that she had fraudulently claimed holiday pay — allegations that the tribunal found were not properly investigated. During the investigation meeting, she was asked about her immigration status and told to repay £50,000, a demand that had no basis in the evidence. The tribunal concluded that this treatment, taken as a whole, was so serious that the claimant was entitled to resign and claim constructive dismissal.
Why this matters for similar claims
For employees considering a constructive dismissal claim, this case highlights the importance of the employer's conduct as a whole. A single breach may not be enough, but a pattern of unreasonable behaviour — especially against a long-serving employee — can justify resignation. For employers, the lesson is clear: contractual changes need agreement, investigations must be fair and focused, and demands for repayment must be evidence-based. The £41,039 award reflects the seriousness of the breach and the claimant's length of service.
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