Warehouse manager resigns after walkout employees rehired: constructive dismissal claim fails
A warehouse manager who resigned after Korean employees who walked out were rehired without his knowledge lost his claims for constructive unfair dismissal and race discrimination. The tribunal found the employer's actions were within its managerial prerogative.
1 min read · Last updated 18 May 2026
Case details
- #walkout
- #theft-dismissal
- #reengagement
- #managerial-prerogative
- #burden-of-proof
- #korean-employees
Key facts
- The claimant was Warehouse Manager at the respondent's New Malden warehouse from 12 March 2018.
- In July 2020, five Korean employees walked out after two Korean colleagues were dismissed for theft.
- The respondent's senior managers decided to take a conciliatory approach and rehired four of the five walkout employees.
- The claimant resigned on 2 August 2020 after learning that Mr Oh, one of the walkout employees, had been rehired without his knowledge.
- The claimant alleged constructive unfair dismissal and direct race discrimination, claiming he was treated less favourably because he is Polish.
- The tribunal found no breach of the implied term of trust and confidence and no less favourable treatment because of race.
Timeline
-
Employment started
Mr Niedzialek began employment as Warehouse Manager at the New Malden warehouse.
-
Investigation of Korean employees for theft
Mr Niedzialek investigated two Korean employees for theft and recommended dismissal.
-
Dismissals communicated and walkout
Mr Niedzialek informed the two Korean employees of their dismissal. Five Korean employees walked out in protest, including Mr Oh who was verbally abusive.
-
Four walkout employees return
Four of the five walkout employees returned to work after discussions with senior managers.
-
Meeting and first resignation
Mr Niedzialek and Dan Suh met; Mr Suh shouted, and Mr Niedzialek resigned in response.
-
Request for investigation
Mr Niedzialek emailed senior managers requesting a formal investigation into the walkout employees.
-
Refusal of investigation
Dan Suh held a meeting and refused the request for a formal investigation.
-
Resignation retracted
Mr Niedzialek asked to withdraw his resignation and was allowed to do so.
-
Mr Oh returns and second resignation
Mr Niedzialek discovered Mr Oh had been rehired by Bernard Suh without his knowledge. He resigned again.
-
Formal complaint
Mr Niedzialek raised a formal complaint about an incident with Mr Oh on 2 September.
The legal issue
The tribunal had to decide whether the respondent's refusal to investigate the walkout employees and the reengagement of Mr Oh without consultation amounted to constructive unfair dismissal and direct race discrimination against the claimant because he is Polish.
The outcome
The tribunal dismissed both claims.
- The respondent's decision to rehire the walkout employees was a legitimate exercise of managerial discretion, not a breach of trust and confidence.
- The claimant's race discrimination claim failed because there was no evidence that a hypothetical Polish comparator would have been treated differently; the treatment was based on business strategy, not race.
- No compensation was awarded as the claims were not well-founded.
Lessons & takeaways
- Constructive dismissal requires a fundamental breach of contract by the employer; a disagreement over management strategy is unlikely to meet that threshold.
- Employers can rehire employees who walked out if they have reasonable business reasons, even if a manager disagrees with that decision.
- Race discrimination claims need a comparator in similar circumstances; a difference in nationality alone is not enough if the treatment is based on other factors.
- Resigning in the heat of the moment may be seen as affirming the contract if you later retract the resignation.
When a walkout leads to a resignation
This case shows the limits of constructive dismissal claims when an employer exercises its managerial prerogative. The claimant, a warehouse manager with five years' service, was involved in dismissing two Korean employees for theft. This triggered a walkout by five Korean colleagues. The company's senior managers chose a conciliatory approach, rehiring four of the five walkout employees. The claimant was not consulted and resigned when he discovered one of them, Mr Oh, had been rehired.
What the tribunal decided
The tribunal found that the employer's refusal to conduct a formal investigation into the walkout and the decision to rehire Mr Oh were not breaches of the implied term of trust and confidence. The managers had reasonable and proper cause for their actions: they wanted to maintain business stability and avoid further disruption. The claimant's resignation was not in response to a fundamental breach, but rather a disagreement over management strategy.
On the race discrimination claim, the tribunal noted that the claimant, who is Polish, compared himself to Korean employees. However, the treatment he complained of — the refusal to investigate and the reengagement — was not because of his race. The employer's actions were driven by business considerations, not nationality. There was no evidence that a Polish employee in similar circumstances would have been treated differently.
What this means for similar claims
For employees, this case is a reminder that constructive dismissal is a high bar. A disagreement with your employer's decisions, even if they seem unfair, is not enough. You need a serious breach of contract, such as a fundamental change to your role or a failure to follow a contractual procedure.
For employers, the case shows that taking a pragmatic approach to employee walkouts can be defensible, provided it is based on genuine business reasons and not discriminatory motives. However, better communication with affected managers might have avoided the resignation altogether.
Similar cases
ADHD disability claim fails for lack of medical evidence
A former employee who claimed disability discrimination based on ADHD had her claim dismissed after the tribunal found she had not proven she had the condition on the balance of probabilities.
Claim dismissed after withdrawal emails from husband's account: reconsideration refused
A former employee's unfair dismissal claim was dismissed after emails purporting to withdraw it were sent from her husband's email account. The tribunal refused her application to reconsider, finding her hacking allegation improbable and unsupported by evidence.
Police officer with PTSD dismissed after domestic violence allegation: discrimination claims rejected
A police officer with PTSD who was dismissed after a domestic violence allegation has lost his disability and sex discrimination claims. The tribunal found the misconduct panel's decision was not influenced by his disability.
Disability-related absences led to unfair redundancy selection: £26,000 awarded
A digital marketing manager with Crohn's and Behcet's disease was unfairly selected for redundancy after his disability-related absences played a role in the decision. The tribunal awarded £26,132.24.