General manager resigns after bonus dispute: constructive dismissal claim fails
A general manager who resigned after a dispute over his bonus and holiday pay was not constructively dismissed, the tribunal ruled. All claims were dismissed.
1 min read · Last updated 18 May 2026
Case details
Key facts
- The claimant resigned on 2 May 2022 and the resignation took effect on 31 May 2022.
- The claimant was not expressly dismissed by the respondent.
- The respondent did not breach the implied term of trust and confidence.
- The claimant was not entitled to a year-end bonus because the combined net profit was negative.
- The claimant had no accrued but untaken holiday pay on termination.
- The claimant withdrew his claim for a commission bonus at the hearing.
Timeline
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Employment started
The claimant began employment as general manager of Sizer Engineering Limited.
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Bonus proposal
Mr Simpson emailed the claimant proposing an 8% bonus on combined net profit.
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Meeting about delays
Mr Simpson expressed frustration about job delays; the claimant was irritated but no breach of trust occurred.
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First resignation letter
The claimant wrote a letter of resignation, offering to stay until 1 July 2022.
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Second resignation letter
The claimant wrote again, proposing to leave on 20 May 2022 unless a bonus was paid.
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Access to Sage accounts
The claimant was given access to the Sage accounting system.
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Draft contract and negotiation
The respondent provided a draft contract; the claimant suggested changes and indicated willingness to withdraw resignation.
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Meeting and end of employment
The claimant and Mr Simpson met; the claimant decided to leave due to pay disparity with a colleague; they agreed an immediate end to employment.
The legal issue
The tribunal had to decide whether the claimant was constructively dismissed (i.e., whether the respondent breached the implied term of trust and confidence), and whether he was entitled to notice pay, a bonus, and holiday pay.
The outcome
The tribunal dismissed all claims. The claimant was not constructively dismissed because the respondent did not breach the implied term of trust and confidence. He was not entitled to a year-end bonus because the combined net profit was negative. He had no accrued but untaken holiday pay. The claimant withdrew his claim for a commission bonus at the hearing.
Lessons & takeaways
- To succeed in a constructive dismissal claim, you must show a fundamental breach of contract by your employer that caused you to resign.
- Resigning in response to a dispute over bonus or pay does not automatically amount to constructive dismissal if the employer has not breached trust and confidence.
- If you resign, you should do so promptly after the alleged breach; continuing to work may be seen as accepting the situation.
- A bonus is only payable if there is a contractual entitlement or clear agreement; discretionary bonuses based on negative profits may not be due.
What this case shows in practice
This case illustrates the difficulty of proving constructive dismissal. The general manager resigned after a dispute over his bonus, holiday pay, and working relationship with the director. However, the tribunal found that the employer had not acted in a way that destroyed trust and confidence. The manager's resignation was a voluntary decision, not a response to a fundamental breach of contract.
What the losing side could have done differently
The claimant could have raised a formal grievance about his concerns before resigning. By continuing to negotiate and even suggesting changes to a draft contract, he showed he was willing to continue working. This undermined his claim that he had no choice but to leave. Seeking legal advice earlier might have helped him understand the high threshold for constructive dismissal.
Why the result matters for similar claims
This case is a reminder that not every disagreement or disappointment at work amounts to a breach of trust and confidence. Employees who resign in the heat of a dispute risk losing their right to claim unfair dismissal. It also shows that bonus claims depend on clear contractual terms, not just expectations. The tribunal will look at the whole picture, including whether the employee affirmed the contract by staying on.
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