Constructive dismissal after grievance appeal handler was a friend of the employer
A former employee with six years' service won £26,374 after resigning when he discovered the grievance appeal handler was a friend of his employer. The tribunal found the employer breached the ACAS Code and made unauthorised deductions.
1 min read · Last updated 19 May 2026
Case details
Key facts
- The claimant resigned on 6 June 2022 after discovering the grievance appeal handler was a friend of the respondent.
- The respondent failed to provide the claimant with a written statement of particulars of employment.
- The respondent made an unauthorised deduction from the claimant's wages for 4 days in June 2022.
- The claimant was constructively dismissed due to the respondent's breach of the ACAS Code of Practice.
- The respondent did not attend the hearing and the claimant's evidence was unchallenged.
Timeline
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Employment started
Claimant began working for the respondent.
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Grievance submitted
Claimant submitted a grievance following his suspension.
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Grievance hearing
Grievance hearing took place with a HR company appointed by the respondent.
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Grievance outcome
Claimant was informed his grievance was unsubstantiated and offered a right to appeal.
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Resignation
Claimant resigned after discovering the appeal handler was a friend of the respondent.
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New company incorporated
Claimant incorporated his own company.
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First wages from new company
Claimant received his first wages from his new company.
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ET1 issued
Claimant presented his claim to the tribunal.
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Response struck out
The respondent's response was struck out.
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Hearing
Substantive hearing to consider the claimant's Schedule of Loss.
The legal issue
Whether the employee was constructively unfairly dismissed when he resigned after discovering the grievance appeal handler was a friend of the employer, and whether he was entitled to compensation for unauthorised deductions, failure to provide written particulars, and breach of the ACAS Code.
The outcome
The tribunal upheld the claim of constructive unfair dismissal. The employer failed to attend the hearing, and the employee's evidence was unchallenged.
Compensation awarded:
- Basic award: £3,426
- Compensatory award: £18,416.82
- Unauthorised deduction: £405.73
- Failure to provide written particulars: £2,284
- ACAS Code uplift: £1,841.68
- Total: £26,374.23
Lessons & takeaways
- If you resign because of your employer's conduct, you must do so promptly after discovering the breach – delay can weaken your case.
- Employers must ensure grievance appeal handlers are impartial; using a friend of the employer can be a fundamental breach of trust.
- Keep records of all communications and documents – they are crucial evidence if you bring a claim.
- Employers who fail to attend tribunal hearings risk having claims decided against them based on the employee's unchallenged evidence.
- The ACAS Code of Practice on grievance procedures applies to all employers; breaching it can lead to an uplift in compensation of up to 25%.
When trust breaks down: a case about impartiality
This case shows how important it is for employers to handle grievances fairly and impartially. The employee had worked for Causeway Heating Services Limited for six years when he was suspended and submitted a grievance. The company appointed an external HR firm to hear the grievance, which was rejected. But when the employee tried to appeal, he discovered that the appeal handler was a friend of the employer. He resigned immediately.
What went wrong
The employer made several mistakes. First, it failed to provide a written statement of employment particulars, which is a legal requirement. Second, it made an unauthorised deduction from wages for four days in June 2022. But the most significant issue was the lack of impartiality in the grievance appeal process. By appointing a friend to handle the appeal, the employer destroyed the trust and confidence necessary for the employment relationship. The tribunal found that this was a fundamental breach of contract, entitling the employee to resign and claim constructive dismissal.
Why the result matters
For employees, this case is a reminder that you do not have to accept a biased grievance process. If your employer's conduct is so serious that it undermines the relationship, you may be able to resign and claim constructive unfair dismissal. The tribunal also applied an uplift of 10% for breaching the ACAS Code of Practice, which sets out minimum standards for handling grievances. Employers should note that failing to follow the Code can increase compensation awards.
The employer did not attend the hearing, so the employee's evidence was unchallenged. This highlights the importance of engaging with tribunal proceedings – ignoring them does not make the claim go away.
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