Compliance Manager wins constructive dismissal claim after year-long grievance delay at HS2
A Compliance Manager was constructively dismissed after HS2 took over a year to resolve her grievance, despite occupational health warnings. The tribunal awarded £7,647.92.
2 min read · Last updated 18 May 2026
Case details
Key facts
- The claimant was employed from 10 April 2017 to 13 August 2021 as a Compliance Manager.
- She submitted a formal grievance on 3 August 2020, which was not concluded until 11 August 2021.
- Occupational Health reports in October and December 2020 advised early resolution of workplace issues to prevent health deterioration.
- The claimant resigned on 13 August 2021, citing the respondent's failure to deal with her grievance promptly.
- The tribunal found the respondent breached the implied term of trust and confidence by the unreasonable delay in providing a grievance outcome.
- The claimant's claims of race discrimination, harassment, and victimisation were dismissed.
Timeline
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Employment started
Claimant began employment with HS2.
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Evolve restructure notification
Claimant notified her role was affected by Project Evolve.
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Appointed to Compliance Manager role
Claimant appointed to Compliance Manager role she had not applied for.
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Accepted Compliance Manager role
Claimant accepted the role after extended consideration period.
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Submitted first formal grievance
Claimant raised grievances about Evolve process and alleged discrimination.
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Sick leave started
Claimant went on sick leave due to work-related stress.
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First Occupational Health report
OH advised reduced hours and early resolution of grievance.
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Second Occupational Health report
OH noted health deterioration and again urged early resolution.
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Grievance outcome received
Claimant received grievance outcome report, partially upholding some allegations.
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Resignation
Claimant resigned, citing constructive dismissal due to breach of contract.
The legal issue
The tribunal had to decide whether the employer's failure to deal promptly with a grievance amounted to a fundamental breach of contract, entitling the employee to resign and claim constructive unfair dismissal. It also considered claims of race discrimination, harassment, and victimisation, which were dismissed.
The outcome
The tribunal upheld the claim of constructive unfair dismissal, finding that HS2's year-long delay in concluding the employee's grievance was a fundamental breach of the implied term of trust and confidence. The employee resigned in response to this breach.
Compensation was reduced by 75% under Polkey principles, reflecting the likelihood that the employee would have resigned in any event due to other factors. The award was:
- Basic award: £3,264.00
- Compensatory award: £3,109.27
- Total: £7,647.92
No contributory fault deduction was applied. The race discrimination, harassment, and victimisation claims were dismissed.
Lessons & takeaways
- Employers should handle grievances promptly, especially when occupational health advises early resolution to prevent health deterioration.
- A long delay in processing a grievance can be a fundamental breach of contract, giving the employee the right to resign and claim constructive dismissal.
- Even if an employee has other reasons for resigning, a Polkey reduction may apply if the tribunal finds they would have left anyway, but the employer still faces liability.
- Employees should ensure they resign in response to the breach and not delay, as the right to claim constructive dismissal can be lost if they affirm the contract.
When a grievance delay becomes a breach of trust
This case shows how a failure to deal with an employee's grievance in a timely manner can amount to a fundamental breach of contract, entitling the employee to resign and claim constructive unfair dismissal. The employee, a Compliance Manager with four years' service, submitted a formal grievance in August 2020 about a restructure and alleged discrimination. Despite occupational health reports in October and December 2020 urging early resolution to prevent her health from deteriorating, HS2 did not provide a grievance outcome until August 2021 – over a year later. She resigned the same week, citing the delay.
The tribunal found that this delay was unreasonable and breached the implied term of trust and confidence. The employer had no good reason for taking so long, and the employee had made clear that the delay was causing her significant stress. The tribunal noted that the grievance outcome itself was not the issue – it was the failure to provide it promptly that was the problem.
What the employer could have done differently
HS2 could have avoided liability by prioritising the grievance process, particularly given the clear warnings from occupational health. Even if the grievance was complex, a year-long delay without adequate explanation is difficult to justify. The tribunal also noted that the employee had raised concerns about her reporting lines and requested a move away from a difficult manager – issues that could have been addressed earlier.
Why this matters for similar claims
This case is a reminder that employers must take grievances seriously and deal with them promptly. The fact that the employee's race discrimination claims were dismissed did not undermine her constructive dismissal claim – the two are separate. However, the award was reduced by 75% because the tribunal found she would have resigned anyway due to other factors, such as her role being made redundant. Employees considering a constructive dismissal claim should ensure they resign in response to the breach and not delay, as affirming the contract can lose the right to claim.
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