Over 20 years' service: constructive dismissal after furlough and reduced-hours offer
A driver, telephonist and controller with over 20 years' service was constructively dismissed after his employer offered only limited holiday cover at reduced pay following furlough. The tribunal extended time for his unfair dismissal claim.
2 min read · Last updated 18 May 2026
Case details
- #long-service
- #furlough
- #reduced-hours-offer
- #ambiguous-termination
- #time-extension
Key facts
- Mr Clegg worked for Meadway Private Hire Ltd from the 1970s, with continuous employment from May 1998.
- He was furloughed in April 2020 due to the pandemic.
- In September 2021, discussions about returning to work began but no agreement was reached.
- The respondent offered only limited holiday cover at reduced hours and pay, which Mr Clegg rejected.
- After 31 October 2021, there was no further contact until Mr Clegg lodged a grievance in March 2022.
- The tribunal found the contract terminated at some point after October 2021 due to the respondent's fundamental breach.
Timeline
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Contract signed
Mr Clegg signed a contract of employment with Meadway Radio Cars Ltd, which stated no normal working hours but he worked full-time.
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Furloughed
Mr Clegg was placed on furlough due to the pandemic.
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First contact about return
Mr Clegg messaged his manager Jason asking about resuming work.
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Meeting with manager
Mr Clegg met Jason to discuss return to work; he was reassured but no firm offer made.
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Offer of limited work
Jason offered holiday cover for four weeks at £10 per hour, less than Mr Clegg's previous rate.
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Offer rejected
Mr Clegg refused the offer, stating it would leave him in penury.
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Last contact
Jason asked what Mr Clegg wanted; Mr Clegg did not reply.
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Grievance lodged
Mr Clegg sent a WhatsApp grievance, asking about owed wages and redundancy.
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Claim presented
Mr Clegg filed his ET1 claim for unfair dismissal, redundancy, and other payments.
The legal issue
The tribunal had to decide whether the claimant's claims for unfair dismissal, breach of contract, unlawful deduction from wages, and holiday pay were brought in time, and if not, whether time should be extended because it was not reasonably practicable to bring them earlier.
The outcome
The tribunal extended time for the claims of unfair dismissal, breach of contract, unlawful deduction from wages, and unpaid holiday pay, allowing them to proceed to a final hearing. The claim for a redundancy payment was also allowed to proceed.
- The tribunal accepted that the claimant, who had no legal representation and was dealing with the aftermath of a long employment relationship, did not realise his employment had ended until he lodged a grievance in March 2022.
- The respondent's conduct—offering only limited, lower-paid work after furlough and then ceasing contact—amounted to a fundamental breach that terminated the contract at some point after October 2021.
- The claimant presented his claim on 25 May 2022, which was outside the usual three-month time limit, but the tribunal exercised its discretion to extend time.
Lessons & takeaways
- If you are offered substantially different terms after a period of furlough, seek advice promptly—this could be a constructive dismissal.
- Keep a clear record of all communications with your employer, especially when discussions about returning to work break down.
- If you are unsure whether your employment has ended, consider lodging a grievance to clarify the situation and protect your time limits.
- Tribunals can extend time if it was not reasonably practicable to bring a claim earlier, but you must act as soon as reasonably possible once you realise you have a claim.
- Long-serving employees may have stronger claims, but they still need to bring claims within time limits or show good reason for delay.
A long service cut short after furlough
This case shows how a breakdown in communication after furlough can lead to a constructive dismissal claim, even when the employer may not have intended to end the relationship. The claimant had worked for Meadway Private Hire Ltd since the 1970s, with continuous employment from 1998. After being furloughed in April 2020 due to the pandemic, he was offered only limited holiday cover at a lower rate when work resumed in September 2021. He rejected the offer, and after 31 October 2021, there was no further contact until he lodged a grievance in March 2022.
The tribunal found that the employer's conduct—offering reduced hours and pay with no guarantee of future work, then failing to respond—amounted to a fundamental breach of contract. The claimant reasonably treated this as a repudiatory breach, bringing the contract to an end at some point after October 2021. However, he did not realise his employment had ended until he sent a grievance in March 2022, asking about owed wages and redundancy.
Why time was extended
The key issue was whether the claims were brought in time. The claimant presented his claim on 25 May 2022, more than three months after the effective date of termination. The tribunal accepted that it was not reasonably practicable for him to bring the claim earlier. He had no legal representation, was relying on his son as a lay representative, and genuinely believed his employment might still be continuing. Once he realised the position, he acted promptly.
What this means for similar claims
This case is a reminder that constructive dismissal claims can arise from a failure to offer suitable work after furlough, especially for long-serving employees. Employers should ensure they communicate clearly and in writing about any changes to terms and conditions. For employees, if you are offered significantly different work after a period of absence, seek advice early. Even if you miss the usual time limit, a tribunal may extend time if you can show it was not reasonably practicable to bring the claim sooner.
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