An employment contract is a vitally important agreement which outlines behaviours, standards and practices for both employers and employees. A claim for constructive dismissal can be made if something known as a repudiatory breach of this contract occurs.
What does repudiatory breach mean?
Put simply, a repudiatory breach of contract is a significant or fundamental breach in the contractual relationship. It is a breach so serious that the injured party may choose to end the contract. So, in real terms, an employee may feel that their employer has committed a contract breach so serious and unacceptable that they have no option but to resign immediately from their role. In this case, a constructive dismissal claim may be pursued.
What would constitute a repudiatory breach of contract?
A repudiatory breach of contract is any course of action or behaviour that can destroy or damage the relationship of mutual trust and confidence between employer and employee. It may be a singular breach that happens just once or a course of action over time. Either way, the innocent party must be deprived of the whole benefit of the agreement between them. Examples as to what may form a repudiatory breach include being humiliated in front of other staff, withholding pay, intolerable working conditions or a discriminatory act.
What to do if you think your employer has committed a repudiatory breach of contract?
An employee who believes a repudiatory breach has been committed has two choices. They can either affirm the contract or accept the repudiation. Affirming the contract usually means continuing the contract. Affirmation may be implied if the worker continues to show up for work and continues in their role. Doing nothing will be seen as an affirmation and once an affirmation is made, it cannot be revoked. Accepting a breach usually means the resignation of the innocent party and the acceptance of the breach has to be communicated to the party in breach.
How do you prove a constructive dismissal case?
To bring a case for constructive dismissal, a worker will need to have ’employee’ status, have worked for the employer for at least two years and must make the claim within three months minus a day of their resignation. To succeed in a claim for constructive dismissal, an employee must show there was a repudiatory breach, that they resigned in response to it and that they did not delay, thereby waiving or accepting the breach.
It is usually best if the resignation is instant and without notice. If you do resign as a result of your employer’s conduct, you should seek legal advice straight away. More advice about pursuing a claim for constructive dismissal is available at https://www.employmentlawfriend.co.uk/constructive-dismissal Constructive dismissal cases can be difficult – but certainly not impossible – to prove so try to appoint an employment law expert as soon as possible. There are now no tribunal fees to pay in order to bring a case. These were scrapped in 2017 after the Supreme Court ruled it was unlawful to charge people to bring a case, according to the BBC
What happens if a constructive dismissal case is won?
Damages will be paid to a person who can prove they have been constructively dismissed. Contractual claims are capped within the Employment Tribunals at £25,000, although the injured party may also be entitled to damages. Constructive dismissal cases currently have a statutory cap of £93,878- or 52-weeks’ gross pay, whichever is higher. Some cases may reach an employment tribunal, but many are settled outside of court or through mediation.