17-year engineer wins constructive dismissal after fuel expenses shortfall
A field services engineer with 17 years' service was constructively dismissed after his employer failed to fully reimburse his fuel costs and mishandled his grievance. The tribunal found a breach of trust and confidence.
1 min read · Last updated 18 May 2026
Case details
- #constructive-dismissal
- #expenses-reimbursement
- #fuel-costs
- #hmrc-advisory-rates
- #grievance-delay
- #breach-of-trust-and-confidence
Key facts
- The claimant was employed as a field services engineer from 2006 until his resignation in May 2021.
- In June 2017, the respondent changed its expenses policy, moving from a fuel card system to reimbursement at HMRC advisory fuel rates.
- The claimant complained from early 2019 that the HMRC rates did not fully cover his fuel costs, leaving him out of pocket.
- The respondent's grievance and appeal processes took over a year and did not fully address the shortfall.
- The claimant resigned on 18 April 2021, citing the respondent's failure to reimburse his fuel expenses and the impact on his mental health.
- The tribunal found that the respondent breached the implied term of trust and confidence by its cumulative conduct, including delays and inadequate remedy.
Timeline
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Employment commenced
The claimant started working for the respondent as a field services engineer.
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Expenses policy changed
The respondent announced changes to the fuel reimbursement policy, moving from a fuel card to HMRC advisory rates.
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Additional penny added to mileage rate
The respondent added 1p per mile to the HMRC rate for certain diesel vehicles due to fuel efficiency concerns.
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Claimant received new Peugeot car
The claimant selected a Peugeot 3008 1.5 diesel, which had lower fuel efficiency than expected.
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Claimant complained about fuel costs
The claimant raised concerns with his manager about being out of pocket for business fuel.
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Formal grievance raised
The claimant submitted a formal grievance about the fuel shortfall.
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Grievance hearing held
The grievance hearing took place via video, delayed by the pandemic.
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Grievance outcome issued
The respondent offered an additional 2p per mile, but subject to tax, backdated to January 2020.
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Appeal hearing held
The claimant's appeal was heard by Volker Brassard.
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Appeal outcome issued
The respondent increased the uplift to 3p per mile (taxed), backdated to January 2020.
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Manager's email outburst
GVW sent an unprofessional email to the claimant, later apologised.
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Claimant resigned
The claimant gave notice of resignation, citing the respondent's treatment over fuel reimbursement.
The legal issue
The tribunal had to decide whether the employer's failure to cover the claimant's fuel costs, combined with a drawn-out grievance process, breached the implied term of trust and confidence, making the resignation a constructive unfair dismissal.
The outcome
The tribunal ruled that the claimant was constructively and unfairly dismissed. The key reasons were:
- The respondent's expenses policy left the claimant out of pocket for business fuel.
- The grievance and appeal took over a year, with only a partial, backdated remedy offered.
- The respondent's conduct cumulatively destroyed trust and confidence.
No compensation was awarded in this liability-only hearing; a remedy hearing will follow.
Lessons & takeaways
- If your employer's expenses policy leaves you out of pocket for business costs, raise it formally and document everything.
- Lengthy delays in handling a grievance can contribute to a finding of constructive dismissal, especially if the remedy is inadequate.
- An employer's failure to reimburse genuine business expenses can be a breach of the implied term of trust and confidence.
- Resigning without first exhausting internal processes may still succeed if the breach is fundamental and ongoing.
When fuel costs become a trust issue
For 17 years, a field services engineer drove for his job. When his employer changed its fuel reimbursement policy in 2017, he began to lose money on every business mile. Despite raising the issue repeatedly, the company took over a year to process his grievance and offered only a partial, backdated solution. By April 2021, he felt he had no choice but to resign.
The tribunal found that Elopak UK Limited's conduct—particularly the failure to cover the shortfall and the drawn-out internal process—amounted to a fundamental breach of trust and confidence. The case shows that even a seemingly minor policy issue can become a dismissal claim if mishandled.
What the employer could have done differently
The respondent could have avoided this outcome by acting sooner. When the claimant first flagged the fuel shortfall in early 2019, a simple review of the rates might have resolved the issue. Instead, the grievance took over a year, and the eventual offer of an extra 2p per mile (backdated only to January 2020) failed to address the full loss. A more timely and complete remedy—perhaps using actual fuel costs rather than HMRC advisory rates—would likely have preserved trust.
Why this matters for similar claims
This case is a reminder that constructive dismissal can arise from a pattern of behaviour rather than a single dramatic event. Employees who find themselves out of pocket for work expenses should raise concerns formally and keep records. Employers should treat such complaints seriously and resolve them promptly, especially for long-serving staff. The liability decision here paves the way for a remedy hearing where compensation will be determined.
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