Constructive dismissal and race discrimination: Sodexo failed to address grievance concerns
A former employee of Sodexo was constructively dismissed and directly discriminated against on grounds of race after the company failed to address concerns raised in her grievance. The tribunal awarded £16,695.13.
1 min read · Last updated 18 May 2026
Key facts
- The claimant was constructively and unfairly dismissed.
- The respondent directly discriminated against the claimant on grounds of race by failing to address concerns raised in the grievance process.
- All other claims of race discrimination and victimisation were dismissed.
- The respondent failed to comply with the ACAS code of practice in respect of the grievance hearing.
- The claimant was awarded a total of £16,695.13 including basic award, loss of earnings, injury to feelings, and ACAS uplift.
Timeline
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Substantive hearing begins
The main hearing took place over 7 days from 3 to 11 July 2023.
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Judgment on liability
Employment Judge Rayner issued the judgment finding constructive unfair dismissal and race discrimination, with other claims dismissed.
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Remedy hearing
A one-day remedy hearing was held to determine compensation.
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Remedy judgment sent to parties
The written remedy judgment was sent to the parties.
The legal issue
The tribunal had to decide whether the employee was constructively and unfairly dismissed and whether Sodexo directly discriminated against her on grounds of race by failing to address her grievance concerns.
The outcome
The tribunal found that the employee was constructively and unfairly dismissed and that Sodexo directly discriminated against her on grounds of race by failing to address concerns raised in the grievance process. Other claims of race discrimination and victimisation were dismissed.
Compensation breakdown:
- Basic award: £1,069.20
- Loss of statutory rights: £500.00
- Loss of earnings: £262.70 (with 10% ACAS uplift and interest, total £320.00)
- Injury to feelings: £11,000.00 (with 10% ACAS uplift and interest, total £14,699.01)
- Total award: £16,695.13
Lessons & takeaways
- Employers must take reasonable steps to address concerns raised in a grievance, especially those relating to discrimination, or risk a finding of constructive dismissal and direct discrimination.
- A failure to comply with the ACAS Code of Practice on disciplinary and grievance procedures can lead to an uplift of up to 25% on compensation.
- Employees who resign in response to a serious breach of contract by their employer may have a claim for constructive unfair dismissal, even if they have not been explicitly dismissed.
- Injury to feelings awards for race discrimination can be substantial, reflecting the impact on the individual's dignity and self-worth.
What this case shows in practice
This case illustrates how an employer's failure to properly handle a grievance can lead to findings of both constructive unfair dismissal and direct race discrimination. The employee, who had raised concerns about her treatment, resigned after Sodexo failed to take steps to address those concerns. The tribunal found that this failure amounted to a fundamental breach of the implied term of trust and confidence, entitling her to resign and claim constructive dismissal. Additionally, the failure to address the grievance was itself an act of direct race discrimination.
What the losing side could have done differently
Sodexo could have avoided liability by taking the employee's grievance seriously and investigating her concerns promptly and fairly. Engaging with the grievance process in line with the ACAS Code of Practice would have reduced the risk of a discrimination finding and avoided the 10% uplift on compensation. The tribunal noted that the respondent failed to comply with the ACAS code in respect of the grievance hearing, which increased the overall award.
Why the result matters for similar claims
This case reinforces that employers must not ignore or downplay grievances that raise discrimination issues. A failure to act can be both a breach of contract (supporting a constructive dismissal claim) and a separate act of discrimination. The award of £11,000 for injury to feelings reflects the seriousness of the discrimination, and the ACAS uplift serves as a deterrent against procedural failures. Employees who feel forced to resign due to their employer's inaction on discrimination concerns may have strong claims for compensation.
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