Demoted without consultation: constructive dismissal after 20 years' service
A long-serving installations manager was constructively dismissed after being demoted twice without consultation. The tribunal awarded £24,331.
1 min read · Last updated 19 May 2026
Case details
Key facts
- The claimant was employed as Installations Manager from 18 June 2001 until his resignation on 5 November 2021.
- The respondent demoted the claimant to Installations Co-ordinator without consultation on 23 August 2021.
- The claimant was presented with an ultimatum to resign or be further demoted.
- The respondent's grievance process was found to be inadequate and undermined by the managing director.
- The claimant's whistleblowing claims were dismissed as not made in the public interest.
- The tribunal found the claimant was constructively unfairly dismissed and wrongfully dismissed.
Timeline
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Employment started
Claimant commenced employment as a fabricator.
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Furlough announced
Respondent announced business closure and furlough; claimant made phone calls to customers.
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Permanent monthly pay change
Respondent made permanent the change from weekly to monthly pay without proper consultation.
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First demotion attempt
Adam Sandle promoted to Installations Manager; claimant's role changed to Installations Co-ordinator.
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Second demotion
Claimant returned from leave to find Jeremy Bush as Installations Manager and himself as Co-ordinator.
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Settlement offer
Claimant offered a settlement to leave; offer later withdrawn.
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Grievance submitted
Claimant submitted grievance about demotion, underpayment, and pressure.
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Grievance meeting
Brief meeting; claimant uncommunicative; later emailed whistleblowing disclosures.
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Grievance outcome
Grievance rejected except for underpayment; no mention of whistleblowing.
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Resignation
Claimant resigned with immediate effect, citing constructive dismissal.
The legal issue
The tribunal had to decide whether the employer's actions — including two demotions without consultation and a flawed grievance process — amounted to a fundamental breach of contract entitling the employee to resign and claim constructive unfair dismissal.
The outcome
The tribunal found that the claimant was constructively unfairly dismissed and wrongfully dismissed. The key reason was that the respondent's decision to demote the claimant without any prior discussion or consultation, and then giving him an ultimatum to resign or be further demoted, destroyed the mutual trust and confidence between the parties. The grievance process was also inadequate and undermined by the managing director.
Compensation:
- Basic award: £12,512
- Compensatory award: £3,179
- Total: £24,331
The tribunal dismissed the whistleblowing claims, finding that the disclosures were not made in the public interest.
Lessons & takeaways
- Demoting a long-serving employee without any consultation or warning is a high-risk move that is likely to be seen as a fundamental breach of contract.
- A flawed grievance process — especially one where senior management undermines the process — can strengthen a constructive dismissal claim.
- Whistleblowing claims require disclosures made in the public interest; personal grievances about pay or treatment will not qualify.
- Length of service matters: employees with 20 years' service are entitled to a higher basic award and more procedural fairness.
A 20-year career undone by a single decision
After two decades with the same employer, the installations manager was told he was being demoted — with no warning and no chance to respond. The decision was presented as a fait accompli, and when he tried to challenge it through the company's grievance process, the managing director's involvement made a fair outcome impossible. The tribunal found that this was not just poor management; it was a fundamental breach of the trust and confidence that underpins every employment contract.
What the employer could have done differently
The respondent could have avoided liability by following basic procedural fairness. Before demoting a long-serving manager, they should have discussed performance concerns, given him an opportunity to improve, and considered alternatives. Instead, they acted unilaterally and then compounded the problem by giving him an ultimatum: resign or be demoted further. The grievance process was also mishandled — the managing director, who was central to the dispute, effectively controlled the outcome. A properly independent grievance procedure might have salvaged the relationship.
Why this matters for similar claims
This case is a reminder that constructive dismissal claims often turn on process, not just outcome. Even if an employer has legitimate business reasons for a restructure, they must handle it fairly. For employees, the key takeaway is that resigning in response to a fundamental breach can succeed, but the breach must be clear — a demotion without consultation, especially for a long-serving employee, is one of the strongest examples. The tribunal also rejected the whistleblowing claims, showing that not every complaint about treatment at work will qualify for protection.
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