Constructive dismissal after restructure excluded employee: trust and confidence broken
An employee who resigned after a restructure excluded her has won her constructive unfair dismissal claim. The employer failed to attend the hearing and was ordered to pay £15,000 in costs.
1 min read · Last updated 18 May 2026
Case details
Key facts
- The claimant resigned after a culmination of incidents, with the last straw being a restructure that excluded her in January 2021.
- The respondent breached the contract of employment by damaging the relationship of trust and confidence.
- The respondent failed to attend the hearing and did not provide any evidence or witness statements.
- The claimant succeeded in claims for constructive unfair dismissal, wrongful dismissal, and 12 weeks' notice pay.
- The respondent was ordered to pay £15,000 in costs for unreasonable conduct.
Timeline
-
Restructure excluding claimant
The respondent restructured the business, excluding the claimant, which acted as the 'last straw' leading to her resignation.
-
Claimant resigned
The claimant resigned due to a series of incidents culminating in the restructure, claiming constructive dismissal.
-
Liability hearing
The tribunal heard the claim via CVP video hearing. The respondent did not attend. The tribunal found in favor of the claimant on liability.
-
Remedy hearing
A remedy hearing was listed to determine awards, but no further details are provided in the judgment.
-
Costs application
The claimant applied for costs, which was later granted.
-
Costs judgment
The tribunal ordered the respondent to pay £15,000 in costs for unreasonable conduct.
The legal issue
The tribunal had to decide whether the employee was constructively unfairly dismissed and wrongfully dismissed, and whether the employer's conduct justified a costs award.
The outcome
The tribunal ruled in favour of the employee on all claims. It found that the employer breached the contract of employment by damaging the relationship of trust and confidence. The 'last straw' was a restructure in January 2021 that excluded the employee, leading to her resignation.
The employer did not attend the hearing or provide any evidence. The tribunal also ordered the employer to pay £15,000 in costs for unreasonable conduct, including failing to engage with proceedings and produce witness statements.
Lessons & takeaways
- A series of incidents culminating in a 'last straw' can amount to constructive dismissal if they destroy trust and confidence.
- Employers who fail to engage with tribunal proceedings risk costs orders, especially if they are well-resourced and have legal support.
- Excluding an employee from a restructure without proper consultation can be a serious breach of contract.
- Employees should consider whether they have affirmed the contract before resigning; delay may weaken a constructive dismissal claim.
When a restructure becomes the final straw
This case shows how a pattern of conduct, rather than a single dramatic event, can lead to a successful constructive dismissal claim. The employee resigned after a restructure excluded her, which she saw as the culmination of a series of incidents that had damaged trust and confidence. The tribunal agreed, finding that the employer's actions amounted to a repudiatory breach of contract.
What makes this case notable is the employer's complete failure to defend the claim. Saint Gobain Building Distribution Ltd did not attend the hearing, provided no witness statements, and produced no bundle of documents. The tribunal proceeded in their absence and found in favour of the employee on all claims, including wrongful dismissal and 12 weeks' notice pay.
The costs warning
The employer was also ordered to pay £15,000 in costs. The tribunal described the company as 'well-resourced with a HR department' and found that its failure to engage was unreasonable. This serves as a reminder that tribunals can penalise employers who ignore proceedings, particularly when they have the resources to participate.
For employees considering a constructive dismissal claim, this case highlights the importance of identifying a clear 'last straw' and resigning promptly. It also shows that even if an employer fails to defend, the tribunal will still scrutinise the evidence to ensure the claim is well-founded.
Similar cases
Charity founder dismissed after blowing the whistle: a case of time limits and constructive dismissal
A general manager who resigned over a hostile working environment was later dismissed for gross misconduct. The tribunal found he was wrongfully dismissed but his whistleblowing claim failed because it was brought too late.
General Manager's constructive dismissal claim fails but holiday pay awarded
A General Manager with 13 years' service resigned claiming constructive dismissal after a dispute over a promised reward for a business sale. The tribunal rejected his claim but awarded £326.41 in unpaid holiday pay.
PWE sign-off delay: resignation over unauthorised absence meeting was not constructive dismissal
A graduate trainee accountant who resigned after being invited to a disciplinary meeting for unauthorised absence failed to prove constructive unfair dismissal. The tribunal found the employer's conduct did not breach trust and confidence.
Wage shortfall, unpaid leave and notice pay: a former employee wins £18k after employer goes into liquidation
A former employee who was owed wages, holiday pay and notice pay has been awarded £18,318.14 after their employer entered voluntary liquidation and did not defend the claim.