Constructive dismissal compensation cut for failing to seek employed work
An administrator who was constructively dismissed and then pursued self-employment as a specialist exercise instructor had her compensation reduced because she did not look for similar office roles. She was awarded £10,261.74.
1 min read · Last updated 19 May 2026
Case details
Key facts
- The claimant was constructively dismissed on 17 August 2022.
- The claimant had over 4 years' continuous employment and was aged 57 at dismissal.
- The claimant pursued self-employment as a specialist exercise instructor after dismissal.
- The tribunal found the claimant failed to mitigate her loss by not seeking alternative employed roles.
- The claimant was awarded a basic award of £3,461.52 and a compensatory award of £6,800.22.
- The compensatory award was limited to losses up to 30 November 2022.
Timeline
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Temporary cessation of employment
The claimant was not employed by the respondent between 4 April 2022 and 13 May 2022 due to a temporary cessation of work.
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Constructive dismissal
The claimant was constructively dismissed on 17 August 2022.
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Job Centre visit
The claimant visited the Job Centre at the end of September 2022 to discuss options.
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Training completed
The claimant undertook training in November 2022 to become a specialist exercise instructor.
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Marketing business
The claimant marketed her business in December 2022, contacting 20-30 care homes.
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Free taster sessions
In January 2023, the claimant delivered free taster sessions to care homes.
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Started earning
In February 2023, the claimant started to get paid for her self-employment venture.
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Remedy hearing
The remedy hearing took place on 2-4 October 2023.
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Judgment issued
The reserved judgment was issued on 30 October 2023.
The legal issue
The tribunal had to decide how much compensation to award for constructive unfair dismissal, and in particular whether the claimant had done enough to find alternative work and reduce her losses.
The outcome
The tribunal awarded the claimant a total of £10,261.74 for constructive unfair dismissal.
- The basic award was £3,461.52.
- The compensatory award was £6,800.22, but this was limited to losses up to 30 November 2022 because the tribunal decided the claimant had not taken reasonable steps to find a new employed job after that date.
Although the claimant had started her own business as a specialist exercise instructor, the tribunal said she should also have applied for administrative roles similar to her previous job. Because she did not, her compensation was reduced.
Lessons & takeaways
- After a constructive dismissal, you must actively look for suitable alternative work – not just pursue self-employment – to show you are mitigating your loss.
- Choosing a niche self-employed venture without also applying for similar employed roles can be seen as unreasonable, and may limit your compensation.
- The duty to mitigate applies from the date of dismissal, so start job hunting immediately and keep a record of applications.
- If you have a long service history, the tribunal may expect you to consider a wider range of roles, including those outside your immediate field.
This case shows the importance of actively seeking employed work after a constructive dismissal, even if you feel traumatised by your previous employer. The administrator was found to have been constructively dismissed, but when it came to compensation, the tribunal focused on what she did next.
Instead of applying for administrative jobs – which were readily available – she decided to become a self-employed specialist exercise instructor for care homes. While the tribunal accepted she had put effort into her new venture, it concluded that a reasonable person would also have looked for similar employed roles. As a result, her compensation for loss of earnings was limited to just over three months.
What could have been done differently?
The claimant could have applied for administrative positions while building her business. The respondent produced evidence of many suitable roles within a 10-mile radius paying around £30,000. By focusing solely on self-employment in a niche market, she failed to meet the duty to mitigate. The tribunal noted that the Job Centre had supported her self-employment plan, but that did not excuse her from also seeking employed work.
Why this matters
This decision is a reminder that compensation for unfair dismissal is not automatic – it depends on the claimant taking reasonable steps to reduce their losses. Employment tribunals will scrutinise whether you have actively searched for work, and self-employment alone may not be enough if you could have found a similar paid job. If you are considering bringing a constructive dismissal claim, keep a detailed job search log and consider applying for roles even if they are not your first choice.
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