Constructive dismissal claim won after employer accepted liability days before hearing
A former employee won a constructive unfair dismissal claim after their employer accepted liability just two days before the final hearing. The tribunal awarded £1,105.45 in compensation, including a 10% uplift for a partial ACAS code breach.
1 min read · Last updated 18 May 2026
Key facts
- The respondent accepted liability for constructive unfair dismissal and breach of contract two days before the final hearing.
- The claimant obtained new employment at a higher salary on 13 January 2020.
- The tribunal awarded a basic award of £600 and a compensatory award of £505.45.
- The compensatory award included a 10% uplift for a partial breach of the ACAS code.
- The claimant's application for a preparation time order was refused.
Timeline
-
Start of pension contribution period
The respondent failed to pay pension contributions from October 2018 to January 2019, forming part of the breach of contract claim.
-
Claimant started new employment
The claimant obtained new employment at a higher salary, ending the respondent's liability for loss of earnings.
-
Respondent accepted liability
Two days before the final hearing, the respondent wrote to the tribunal and claimant accepting liability for constructive unfair dismissal and breach of contract.
-
Final hearing and judgment
The tribunal held a hearing on remedy only, as liability was accepted. Judgment was issued allowing the claims and awarding £1105.45.
-
Judgment sent to parties
The judgment was sent to the parties on this date.
-
Reconsideration refused
The claimant's application for reconsideration was refused by Employment Judge Apted.
The legal issue
The tribunal had to determine the appropriate remedy for constructive unfair dismissal and breach of contract after the respondent accepted liability. The key issues were the calculation of loss of earnings, notice pay, loss of statutory rights, and pension contributions.
The outcome
The tribunal allowed the claims for constructive unfair dismissal and breach of contract after the respondent accepted liability two days before the final hearing. The remedy hearing proceeded to determine compensation.
- Basic award: £600 (agreed between parties)
- Compensatory award: £505.45, comprising:
- £49.50 for one day's loss of earnings (between dismissal and new job starting 13 January 2020)
- £400 for loss of statutory rights
- £55.95 for job-seeking expenses
- Plus a 10% uplift (£45.95) for a partial breach of the ACAS Code of Practice on disciplinary and grievance procedures
- Total: £1,105.45
Lessons & takeaways
- If you are considering a constructive dismissal claim, gather evidence of the employer's breach of contract and any failure to follow grievance procedures, as this can lead to an ACAS code uplift.
- The ACAS code uplift can increase compensation by up to 25% if the employer unreasonably fails to follow disciplinary or grievance procedures.
- Loss of earnings in constructive dismissal cases ends when you find a new job at equal or higher pay, so keep records of your job search and new employment.
- Pension contribution arrears may be claimed as part of a breach of contract, but the tribunal will offset any amounts already paid by the employer.
- Even if the employer accepts liability late, you may still be entitled to a remedy hearing to determine compensation, but the tribunal may refuse to hear evidence on liability to save resources.
A late admission of liability
This case shows how an employer's last-minute acceptance of liability can shape the tribunal process. The former employee had brought claims for constructive unfair dismissal and breach of contract after their employer failed to pay pension contributions and other alleged breaches. Just two days before a three-day final hearing, the respondent wrote to the tribunal and the claimant accepting liability. This meant the hearing was reduced to a remedy-only session, with the tribunal refusing to hear further evidence on liability, citing proportionality and the overriding objective.
What the tribunal awarded
The compensation was modest: a basic award of £600 and a compensatory award of £505.45, totalling £1,105.45. The compensatory award included one day's loss of earnings (£49.50) because the claimant had quickly found a new job at a higher salary, ending the loss period. The tribunal also awarded £400 for loss of statutory rights and £55.95 for job-seeking expenses. Notably, the tribunal applied a 10% uplift to the compensatory award because the respondent had partially breached the ACAS Code of Practice on disciplinary and grievance procedures. However, the claimant's request for a preparation time order was refused.
Why the result matters
This case highlights that even when an employer concedes liability, the remedy stage can still involve detailed arguments about what losses are recoverable. The tribunal applied established principles: loss of earnings ends when the claimant secures comparable or better employment, and notice pay is not automatically awarded in constructive dismissal cases. The ACAS code uplift, while small here, serves as a reminder that employers who fail to follow proper procedures may face increased compensation. For employees considering a similar claim, the key takeaway is that a quick job search can limit losses, but other heads of claim—like loss of statutory rights and pension arrears—can still add value to the award.
Similar cases
Two employees unfairly dismissed after wage deductions and ACAS code breach
Two former employees of Strong Maker Limited were awarded over £20,000 in total after the tribunal found they were unfairly and automatically unfairly dismissed, with a 25% uplift for the employer's failure to follow the ACAS Code of Practice.
18-year finance officer wins constructive dismissal after unfair re-grading and ignored grievance
A finance and commissioning officer with 18 years' service was constructively dismissed after Hertfordshire County Council unfairly re-graded her role and failed to properly consider her grievance. The tribunal awarded £66,476.86.
Plumber with back injury forced to resign after employer ignored adjustments
A plumber with six years' service was awarded £134,411 after his employer failed to implement occupational health recommendations, cut his sick pay, and ignored his grievance. The tribunal found constructive unfair dismissal and disability discrimination.
Constructive dismissal after unauthorised wage deductions: employer struck out for non-attendance
A former employee won a constructive unfair dismissal claim after his employer failed to pay wages, holiday pay and notice pay. The tribunal awarded over £14,000 after the employer's response was struck out for non-attendance.