Finance Director with 24 years' service wins constructive dismissal and discrimination claim
A tribunal found that a finance director with 24 years' service was constructively dismissed and subjected to sex and race discrimination after being passed over for managing director and told her chairman had lost confidence in her. She was awarded £112,007.
2 min read · Last updated 18 May 2026
Case details
Key facts
- The claimant was employed from 1996 to 2020, becoming Finance Director in 2004.
- The respondent's workforce was predominantly male and white.
- The claimant was not selected for the MD role in 2018; a younger male was appointed.
- On 12 August 2020, the chairman told the claimant he had lost confidence in her.
- The claimant resigned the next day, claiming constructive dismissal.
- The tribunal found the dismissal was unfair and an act of sex and race discrimination.
Timeline
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Employment started
Claimant began working for Artem Ltd part-time as an admin clerk.
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Appointed Finance Manager
Claimant was appointed Finance Manager, later becoming Finance Director.
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Board decides on succession
Board agreed to appoint new directors and for founding members to step down.
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MD appointment announced
Tobias Stewart was appointed Managing Director over the claimant.
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Protected act email
Claimant emailed board alleging bullying of Stan and age remark.
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Email exchange about SB's pay
Claimant raised concerns about SB's pay and treatment.
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Meeting with Kelt and Stewart
Chairman told claimant he had lost confidence in her; she resigned next day.
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Resignation
Claimant resigned as employee and director, alleging bullying.
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Liability judgment
Tribunal found constructive unfair dismissal and sex/race discrimination.
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Remedy hearing
Awarded £112,007.32 including basic award, injury to feelings, and loss of earnings.
The legal issue
The tribunal had to decide whether the claimant was constructively dismissed (i.e., forced to resign due to her employer's conduct) and whether that dismissal was unfair and/or an act of discrimination based on sex, race, or age.
The outcome
The tribunal found that the claimant was constructively dismissed and that the dismissal was unfair. By a majority, it also found that the dismissal was an act of sex discrimination and race discrimination. However, claims of age discrimination and victimisation were dismissed.
Compensation awarded:
- Basic award: £15,064.00
- Compensatory award: £66,290.45 (reduced by 10% for Polkey reduction, reflecting a chance she would have been dismissed anyway)
- Total: £112,007.32 (including other heads such as injury to feelings)
Lessons & takeaways
- Long-serving employees are entitled to a fair process before being told their employer has lost confidence in them — a sudden statement without warning can be a fundamental breach.
- Passing over a qualified female candidate for a male colleague, especially in a male-dominated workplace, can be evidence of sex discrimination if not properly justified.
- Raising concerns about bullying or pay inequality can be a protected act, but the tribunal must consider whether any subsequent treatment is due to that act or other factors.
- A constructive dismissal claim requires showing that the employer's conduct was so serious that resignation was the only reasonable option — not just that the employer acted poorly.
- Tribunals can apply a Polkey reduction if there is evidence that the employee might have been fairly dismissed anyway, even if the actual dismissal was unfair.
A long career ends in a single meeting
The claimant had worked for Artem Ltd for 24 years, rising from part-time admin clerk to Finance Director. But when the company decided to appoint a new Managing Director in 2018, she was overlooked in favour of a younger male colleague. Over the following two years, she raised concerns about bullying and pay inequality — actions the tribunal later treated as protected acts. Then, in August 2020, the chairman told her bluntly that he had lost confidence in her. She resigned the next day.
The tribunal found that this was not a resignation but a constructive dismissal. The chairman's statement, combined with a pattern of less favourable treatment compared to male colleagues, amounted to a fundamental breach of the implied term of trust and confidence. By a majority, the tribunal also found that the dismissal was an act of sex and race discrimination, noting that the workforce was predominantly male and white, and that the claimant — a woman of Chinese Caribbean and British Guyanese origin — had been treated differently.
What Artem Ltd could have done differently
The case highlights the importance of fair process, especially for long-serving employees. The chairman's sudden declaration of lost confidence, without any prior warning or opportunity to respond, was a critical misstep. Even if performance concerns were genuine, the employer should have followed a proper capability procedure, including giving the employee a chance to improve. The tribunal also noted that the claimant had offered to provide further information about her concerns, but this was ignored.
Why this matters for similar claims
This case is a reminder that constructive dismissal claims can succeed when an employer's conduct makes continued employment untenable. It also shows that discrimination claims can be upheld even when the direct evidence is circumstantial — the tribunal relied on the broader context of a male-dominated workplace and the claimant's treatment compared to her male colleague. However, the claim for age discrimination failed, as the tribunal found no evidence that the claimant's age (she was in her 50s) was a factor. The award of £112,007 reflects the financial and emotional impact of the dismissal, though it was reduced by 10% to reflect the possibility that she might have been fairly dismissed in any event.
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