Plumber wins constructive dismissal after employer failed to pay overtime correctly
A plumber with three years' service was constructively dismissed after his employer refused to pay overtime for hours over 40 per week and mishandled his grievance. The tribunal awarded £26,953 in compensation.
1 min read · Last updated 18 May 2026
Case details
- #constructive-dismissal
- #unlawful-deduction-from-wages
- #overtime-pay
- #breach-of-contract
- #normal-working-hours
- #grievance-handling
Key facts
- The claimant's contract stated normal working hours were 40 per week, but the respondent treated them as 45 hours and underpaid overtime.
- The respondent attempted to get the claimant to sign overtime sheets based on 45-hour weeks, which he refused.
- The claimant resigned after the respondent failed to pay correct overtime and handled his grievance poorly.
- The tribunal found the respondent made unlawful deductions from wages and constructively dismissed the claimant.
- The claimant started his own business within two weeks of leaving and drew £1,000 per month.
Timeline
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Claimant becomes permanent employee
The claimant started as a permanent employee with an hourly rate of £10 and normal working hours of 40 per week.
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Written contract signed
The claimant signed a contract stating normal hours of 40 per week, 8am-5pm, with overtime paid at basic rate for Monday-Friday.
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Hourly rate increased to £12.50
The claimant's hourly rate was increased to £12.50, but the respondent continued to treat normal hours as 45.
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Claimant queries pay
The claimant sent a WhatsApp message to Mr Brown asking for a breakdown of his pay and overtime hours.
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Meeting about overpayment
The claimant was told he had been overpaid due to incorrect overtime rate; he disputed this.
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First attempt to sign overtime sheet
The claimant was asked to sign an overtime sheet based on 45-hour weeks; he initially signed but later retracted.
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Second attempt to sign overtime sheet
The claimant refused to sign a similar overtime sheet at a meeting.
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Grievance meeting
The claimant's grievance meeting was held; Mr Brown did not engage substantively.
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Claimant resigns
The claimant submitted his resignation, citing the respondent's failure to pay correct wages and handling of his complaint.
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Effective date of termination
The claimant's employment ended.
The legal issue
The tribunal had to decide whether the employer made unlawful deductions from wages by not paying overtime for hours worked beyond 40 per week, and whether this, combined with the grievance handling, amounted to constructive dismissal.
The outcome
The tribunal ruled in favour of the plumber on both claims.
- The employer made unlawful deductions from wages by treating 45 hours as normal working hours instead of 40, and failing to pay overtime correctly.
- The employer's conduct, including the attempt to get the plumber to sign incorrect overtime sheets and the inadequate grievance process, was a fundamental breach of contract, leading to constructive unfair dismissal.
Compensation:
- Basic award: £1,500
- Compensatory award: £12,809.80
- Total: £26,953.30
Lessons & takeaways
- Check your contract carefully: if it states 40 hours as normal working hours, you are entitled to overtime pay for any hours over that, even if the employer later tries to change the baseline.
- Keep records of your hours and pay queries: WhatsApp messages and written requests can be crucial evidence in showing you raised concerns before resigning.
- A poor grievance process can be a key factor in a constructive dismissal claim: if your employer fails to engage with your complaint, it may amount to a breach of trust and confidence.
- Resigning in response to a fundamental breach must be prompt: if you continue working for too long, you may be seen as affirming the contract and losing the right to claim constructive dismissal.
This case shows how a seemingly straightforward dispute over overtime pay can escalate into a successful constructive dismissal claim. The plumber, who had worked for 24/7 Plumbing & Gas (UK) Limited for three years, had a contract stating his normal working hours were 40 per week. However, the employer consistently treated 45 hours as the norm, underpaying overtime as a result. When the plumber questioned his pay, the employer tried to get him to sign overtime sheets based on the incorrect 45-hour week, which he refused.
What went wrong for the employer
The employer's handling of the grievance was a critical misstep. Instead of engaging with the plumber's concerns about his pay, the meeting was described as perfunctory and lacking substance. This, combined with the ongoing underpayment, created a situation where the plumber felt he had no choice but to resign. The tribunal found that the employer's actions amounted to a fundamental breach of the implied term of mutual trust and confidence, making the resignation a constructive dismissal.
Why this matters
For employees, this case highlights the importance of contractual clarity and the need for employers to follow proper procedures when disputes arise. The plumber's decision to start his own business shortly after leaving did not undermine his claim, as the tribunal focused on the employer's breach rather than his mitigation. The compensation of £26,953 reflects both the unpaid wages and the losses from the dismissal, including the period before he started earning from his new business.
For employers, the lesson is clear: failing to pay what is contractually owed and mishandling grievances can be costly. A proper investigation and a genuine attempt to resolve the issue could have avoided the tribunal claim altogether.
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