Suspended after resigning: a branch manager's constructive dismissal claim succeeds
A branch manager with 15 years' service was suspended for alleged gross misconduct after handing in his notice. The tribunal found it was a 'witch hunt' and awarded a 25% ACAS uplift for failing to follow the code.
1 min read · Last updated 18 May 2026
Case details
Key facts
- The claimant resigned on 5 August 2022 with notice to join a competitor.
- The respondent suspended the claimant on 15 August 2022 for alleged gross misconduct regarding a dead stock sale to his father.
- The tribunal found the suspension was without reasonable or proper cause and part of a 'witch hunt' after the claimant resigned.
- The claimant resigned again on 22 August 2022 claiming constructive dismissal.
- The respondent failed to follow the ACAS Code of Practice and acted inconsistently compared to other employees.
- The tribunal found no contributory fault by the claimant.
Timeline
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First resignation
The claimant resigned with notice, effective 30 October 2022, to join a competitor.
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Suspicious invoice discovered
A margin control enquiry about a dead stock sale to the claimant's father was forwarded to management, triggering an investigation.
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Suspension meeting
The claimant was suspended on suspicion of gross misconduct regarding the dead stock transaction and two other minor issues.
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Second resignation
The claimant resigned immediately, claiming constructive dismissal due to the respondent's breach of trust and confidence.
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Investigation meeting scheduled
The claimant did not attend the investigation meeting as he had already resigned.
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Investigation report
A report concluded the claimant had misused the system, but the tribunal later found no wrongdoing.
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Invitation to further meeting
The claimant was invited to an investigation meeting on 13 September 2022, which he did not attend.
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Hearing day 1
The substantive hearing took place via CVP at Manchester Employment Tribunal.
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Hearing day 2
The hearing concluded with oral submissions.
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Judgment issued
The tribunal found the claimant was constructively unfairly dismissed and awarded a 25% ACAS uplift.
The legal issue
Whether suspending an employee without reasonable cause, after they have resigned, amounts to a breach of the implied term of trust and confidence, entitling them to resign and claim constructive unfair dismissal.
The outcome
The tribunal upheld the claimant's complaint of constructive unfair dismissal. The suspension was found to be a 'witch hunt' triggered by the claimant's resignation to join a competitor, not a genuine investigation.
Key reasons:
- The suspension was without reasonable or proper cause.
- The respondent acted inconsistently compared to other employees.
- There was no contributory fault by the claimant.
Compensation:
- Basic award: to be calculated
- Compensatory award: to be calculated, with a 25% uplift for failure to follow the ACAS Code of Practice
- No reduction for contributory fault
Lessons & takeaways
- Suspending an employee without reasonable cause can be a fundamental breach of trust and confidence, especially if it appears motivated by the employee's resignation.
- Employers must apply disciplinary procedures consistently; treating a resigning employee differently can backfire.
- Following the ACAS Code of Practice is essential – failure can lead to a 25% uplift on compensation.
- Resigning and then claiming constructive dismissal is possible if the employer's conduct amounts to a repudiatory breach before the original notice period ends.
This case shows how a suspension that lacks proper cause can backfire on an employer, particularly when it appears to be a reaction to an employee's resignation. The branch manager had given notice to join a competitor, but was then suspended for alleged gross misconduct over a dead stock sale to his father. The tribunal found the suspension was a 'witch hunt' – a disproportionate response that breached the implied term of trust and confidence.
What the employer did wrong
Travis Perkins could have handled the situation differently. Instead of suspending the manager, they could have conducted a fair investigation without removing him from the workplace, especially given his long service and clean record. The inconsistency in treatment compared to other employees was a key factor – the tribunal noted that other staff who had made similar mistakes were not suspended. By failing to follow the ACAS Code, the company also exposed itself to a 25% uplift on compensation.
Why this matters for similar claims
For employees, this case reinforces that constructive dismissal claims can succeed when an employer's conduct – even after a resignation – destroys trust and confidence. The fact that the claimant had already resigned did not prevent him from claiming that a later act (the suspension) forced him out earlier. For employers, it's a reminder that suspension should not be used punitively or without proper grounds, especially when the employee is already leaving. Consistency and adherence to the ACAS Code are not just good practice – they are legally important.
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