Recruitment coordinator's constructive dismissal claim over informal warning and bonus rejected
The tribunal dismissed claims of constructive unfair dismissal and breach of contract for non-payment of a discretionary bonus, finding no repudiatory breach of trust and confidence.
2 min read · Last updated 19 May 2026
Case details
- #constructive-dismissal
- #discretionary-bonus
- #grievance-procedure
- #informal-warning
- #resignation
Key facts
- The claimant resigned on 28 March 2022 after receiving an informal warning for failing to follow internal recruitment procedures.
- The claimant alleged a series of acts by the respondent destroyed trust and confidence, including comments by a manager and disclosure of grievance details.
- The tribunal found the claimant had not proved the alleged comments were made or that they played a part in her resignation.
- The claimant had secured alternative employment before resigning and sought to reduce her notice period.
- The bonus scheme expressly excluded payment to employees under notice of termination.
Timeline
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Training on internal candidate procedure
John Billings held a team meeting to train staff on the correct process for notifying managers before internal candidate interviews.
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Grievance raised against claimant
MB, a deputy manager, raised a grievance against the claimant alleging breach of confidentiality and mocking.
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Grievance investigation meeting with MB
John Billings met with MB to discuss the grievance.
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Grievance investigation meeting with claimant
John Billings met with the claimant to discuss the grievance.
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Informal warning issued
Sarah Cole informed the claimant that John Billings had decided to issue an informal verbal warning for failing to follow procedure.
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Claimant raised grievance
The claimant raised a grievance about the handling of the investigation and the informal warning.
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Claimant resigned
The claimant emailed her resignation, citing loss of trust and confidence.
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Grievance meeting with Ferdinand Foyne
Ferdinand Foyne held a grievance meeting with the claimant to discuss her complaints.
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Last working day
The claimant's employment ended after a reduced notice period.
The legal issue
The tribunal had to decide whether the employer's conduct – including issuing an informal warning and handling a grievance – amounted to a fundamental breach of the implied term of trust and confidence, entitling the employee to resign and claim constructive dismissal. It also had to decide whether the employee was contractually entitled to a discretionary bonus.
The outcome
The tribunal dismissed both claims.
- Constructive dismissal: The claimant resigned after receiving an informal warning for failing to follow internal recruitment procedures. She alleged that the employer's investigation and handling of her grievance, along with comments made by managers, destroyed trust and confidence. The tribunal found that the alleged comments were not proved, and that the employer's actions – including the warning and grievance process – were reasonable and did not amount to a repudiatory breach. The claimant had also secured another job before resigning, which undermined her claim that she was forced to leave.
- Breach of contract / unlawful deduction of wages: The claimant sought a discretionary bonus. The tribunal found that the bonus scheme was discretionary and expressly excluded payment to employees under notice of termination. Since the claimant had resigned and was under notice, she was not entitled to the bonus.
No compensation was awarded as all claims were dismissed.
Lessons & takeaways
- To succeed in a constructive dismissal claim, you must prove that your employer's conduct was so serious it fundamentally breached your contract – not just that they acted unreasonably.
- If you resign after securing another job, it can weaken your claim that you were forced to leave due to your employer's conduct.
- Discretionary bonuses are often not payable if you are under notice – check the terms of any bonus scheme before relying on it.
- An informal warning for a genuine procedural failure is likely to be seen as a reasonable management response, not a breach of trust and confidence.
When an informal warning doesn't amount to constructive dismissal
This case shows the high bar employees face when claiming constructive dismissal. The recruitment coordinator resigned after receiving an informal verbal warning for failing to follow internal recruitment procedures. She argued that the warning, along with comments from managers and the way her grievance was handled, destroyed the trust and confidence needed to continue working.
However, the tribunal found that the employer had acted reasonably. The warning was issued after a proper investigation, and the alleged offensive comments – including a manager referring to staff as 'gobshites' and making a remark about a colleague's sexuality – were not proved. The tribunal noted that the claimant had already secured another job before resigning, which suggested she was not forced to leave by the employer's conduct.
The discretionary bonus trap
The claimant also sought a bonus she believed she was owed. But the bonus scheme was discretionary and contained a clear exclusion: no payment to employees under notice of termination. Since the claimant had resigned and was serving her notice, she was not entitled to the bonus. This is a common pitfall – employees often assume bonuses are contractual rights when they are often discretionary and subject to conditions.
What the employer did right
Lifeways Community Care Limited followed a proper process: it investigated the grievance against the claimant, held meetings, and issued an informal warning after finding she had failed to follow procedure. When the claimant raised her own grievance, it was investigated by a different manager. The tribunal found no evidence of bias or procedural unfairness.
Key takeaway for employees
Constructive dismissal is not a remedy for feeling upset or treated unfairly at work. You must show that your employer's conduct was a fundamental breach of contract – something that goes to the root of the employment relationship. An informal warning for a genuine mistake, even if you disagree with it, is unlikely to meet that threshold. And if you have already lined up another job, your claim that you were forced to resign will be harder to prove.
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