CTO constructively dismissed after suspension, office closure and sick pay deduction
A chief technical officer who resigned after being suspended, having his team made redundant without consultation, and being denied contractual sick pay has won his constructive unfair dismissal claim at the Bristol Employment Tribunal.
1 min read · Last updated 18 May 2026
Case details
- #constructive-dismissal
- #unlawful-deduction
- #sick-pay
- #breach-of-trust-and-confidence
- #independent-investigator
- #redundancy-without-consultation
- #final-written-warning
Key facts
- The Claimant was employed as Chief Technical Officer from 12 November 2018 to 2 February 2021.
- The Claimant was suspended on 15 July 2020 following a grievance by Ms Williams.
- On the day of suspension, the Claimant's direct reports were made redundant and the Cheltenham office was closed without consulting him.
- An independent investigator was appointed but abandoned the investigation after accusing the Claimant of hacking her laptop.
- The Respondent appointed Mr Ryland as disciplinary officer, who was also a witness in the investigation.
- The Respondent failed to pay the Claimant full contractual sick pay for a second period of absence from 11 January 2021.
Timeline
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Employment commenced
Claimant started as Chief Technical Officer with a 2-year notice period and board position promised.
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Ms Williams resigned
Ms Williams resigned to the Claimant, but he did not inform senior management.
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Ms Williams promoted
Ms Williams was promoted to Technical Director and her reporting line changed, but the Claimant was not informed.
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Core Management Team email
A group of employees sent an email to Mr Jones supporting the Claimant as Managing Director.
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Suspension and office closure
Claimant suspended; Ms Williams appointed Acting MD; Cheltenham office closure and redundancies announced.
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Investigation meeting with Ms Williams
Mr Bowers interviewed Ms Williams about her grievance.
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Independent investigator appointed
TCM Group appointed to investigate both grievances.
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Investigation abandoned
TCM investigator lost data and accused Claimant of hacking; investigation halted.
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Disciplinary meeting
Claimant attended disciplinary meeting with Mr Ryland.
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Final written warning
Claimant issued final written warning; grievance not yet determined.
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Sick pay reduced
Respondent reduced Claimant's pay to SSP, breaching contract.
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Reasons letter
Mr Ryland sent letter with contemptuous tone, final straw.
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Resignation
Claimant resigned with immediate effect.
The legal issue
The tribunal had to decide whether the employer's actions, taken together, breached the implied term of trust and confidence, allowing the employee to resign and claim constructive unfair dismissal.
The outcome
The tribunal ruled that the claimant was constructively unfairly dismissed. The employer's conduct — suspending the claimant without proper explanation, closing his office and making his team redundant without consultation, appointing a witness as disciplinary officer, issuing a final written warning after a flawed process, and deducting contractual sick pay — was a repudiatory breach of the implied term of trust and confidence. The claimant's resignation in response was therefore a dismissal.
Compensation is to be determined at a separate remedy hearing. No award has yet been made.
Lessons & takeaways
- Employers must consult employees before making their direct reports redundant or closing their office, even during suspension.
- Appointing a person who was a witness in the investigation as the disciplinary officer undermines the fairness of the process.
- Failing to pay contractual sick pay without proper authorisation can be a breach of contract supporting a constructive dismissal claim.
- A final written warning issued after a flawed investigation can be a final straw that justifies resignation.
- Cumulative minor breaches can together destroy trust and confidence, even if no single act is sufficient.
What this case shows in practice
This case illustrates how a series of management failures can combine to make continued employment untenable. The claimant, a chief technical officer with two years' service, was suspended following a grievance by a colleague. On the same day, without any consultation, his direct reports were made redundant and his office was closed. The tribunal found this lack of consultation was a clear breach of the implied term of trust and confidence.
What the employer did wrong
The employer's handling of the disciplinary process compounded the problem. An independent investigator was appointed but abandoned the investigation after accusing the claimant of hacking her laptop. The employer then appointed the finance director as disciplinary officer — despite him being a witness in the case. The tribunal noted this created a perception of bias. A final written warning was issued without a proper hearing or interviewing the claimant's witnesses. Finally, the employer reduced the claimant's sick pay to statutory sick pay without contractual authority. The tribunal described a letter from the disciplinary officer as 'contemptuous' in tone, which became the final straw.
Why the result matters
This decision reinforces that constructive dismissal claims can succeed when an employer's conduct, taken as a whole, destroys trust and confidence. It also highlights the importance of proper consultation before making changes that affect an employee's role, even during suspension. For employees, it shows that resigning in response to a final straw — even after earlier breaches — can still amount to a dismissal. The case is a reminder that employers must follow fair procedures and honour contractual obligations, or risk a finding of constructive unfair dismissal.
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