Constructive dismissal after grievance failed to address sexual harassment allegations
A cardiac physiologist who resigned after her employer's grievance process ignored her sexual harassment claims has been awarded £52,599 for constructive unfair dismissal.
1 min read · Last updated 18 May 2026
Case details
Key facts
- The claimant and her line manager had a consensual sexual relationship that ended in September 2015.
- The claimant submitted a grievance in September 2020 alleging sex discrimination and harassment.
- The grievance outcome failed to address allegations of sexual harassment and inappropriate touching.
- The claimant resigned on 18 December 2020 citing the grievance handling.
- The tribunal found the respondent breached the implied term of trust and confidence by failing to address the sexual harassment allegations.
- The claimant obtained alternative employment at a higher salary but with inferior pension and holiday benefits.
Timeline
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Employment commenced
Claimant started work as a Cardiac Physiologist at Guy's and St Thomas' NHS Foundation Trust.
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Relationship ended
The claimant's consensual sexual relationship with the second respondent (line manager) ended.
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Promoted to Band 7
Claimant promoted to Chief Cardiac Physiologist (Band 7), but pay increase delayed until October 2017.
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Grievance submitted
Claimant submitted a formal grievance alleging sex discrimination, harassment, and sexual harassment.
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Grievance outcome
Grievance outcome partially upheld one complaint but failed to address sexual harassment allegations.
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Resignation
Claimant resigned with immediate effect, citing the grievance handling and loss of trust.
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New employment started
Claimant started work at Technomed Ltd as Deputy Clinical Lead at a higher salary.
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Liability judgment
Tribunal found constructive unfair dismissal and wrongful dismissal; sex discrimination claims dismissed.
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Consent judgment on basic award
Parties agreed basic award of £4,304.
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Remedy judgment
Tribunal awarded £52,599 compensatory award (after Polkey 80% deduction and 10% ACAS uplift) and £13,990.92 for wrongful dismissal.
The legal issue
The tribunal had to decide whether the employer's failure to investigate and address allegations of sexual harassment in the grievance process amounted to a fundamental breach of contract, justifying the employee's resignation as constructive dismissal.
The outcome
The tribunal upheld the claim of constructive unfair dismissal, finding that the employer's grievance outcome was fundamentally flawed. It failed to address the most serious allegations of sexual harassment and inappropriate touching, which destroyed the trust and confidence necessary for the employment relationship.
The compensation was calculated as follows:
- Basic award: £4,304 (agreed by consent)
- Compensatory award: £52,599 (after an 80% Polkey reduction for chance of dismissal even with proper process, and a 10% ACAS uplift for unreasonable failure to follow the ACAS Code of Practice on disciplinary and grievance procedures)
- Wrongful dismissal: £13,990.92 (separate award for notice pay)
Lessons & takeaways
- Employers must ensure grievance outcomes address all allegations raised, especially serious ones like sexual harassment, or risk a finding of constructive dismissal.
- A failure to follow the ACAS Code of Practice on grievance procedures can lead to a 25% uplift in compensation (here 10% was applied).
- Even if an employee finds another job quickly, they may still recover losses for pension and other benefits if the new role is inferior in those respects.
- A Polkey reduction can significantly cut compensation if the tribunal finds the employee would likely have been dismissed anyway with a fair process.
When a grievance process fails, trust can be broken
This case shows how a flawed grievance process can itself become the reason for a successful constructive dismissal claim. The employee, a cardiac physiologist, had a consensual relationship with her line manager that ended in 2015. Years later, she raised a grievance alleging sex discrimination, harassment, and sexual harassment. The employer's investigation and outcome letter addressed some complaints but completely ignored the sexual harassment allegations, including claims of inappropriate touching. The employee resigned shortly after, citing loss of trust and confidence.
The tribunal found that by failing to address the most serious allegations, the employer had breached the implied term of trust and confidence. This breach was fundamental enough to justify the employee's resignation as constructive dismissal. The case highlights that employers cannot pick and choose which parts of a grievance to investigate; they must deal with all issues raised, particularly those involving potential misconduct.
What the employer could have done differently
The employer could have avoided liability by ensuring the grievance investigation was thorough and that the outcome letter explicitly addressed every allegation. A proper process would have considered the sexual harassment claims, even if they were ultimately not upheld. The tribunal noted that the failure to do so was a clear breach of the ACAS Code of Practice, leading to a 10% uplift in compensation.
Why this matters for similar claims
For employees considering a constructive dismissal claim based on grievance handling, this case demonstrates that the quality of the grievance process is critical. If an employer's response is so inadequate that it destroys trust, a resignation may be justified. However, the 80% Polkey reduction here shows that even when a claim succeeds, compensation can be heavily reduced if the tribunal believes the employee would have been dismissed anyway with a fair process. The employee's quick re-employment at a higher salary also limited her losses, but she still recovered for pension and holiday differences.
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