Constructive dismissal settlement agreements
If your employer's conduct forced you to resign, you may have a constructive dismissal claim. A settlement agreement can resolve the dispute without going to tribunal.
What constructive dismissal is
Constructive dismissal is a fundamental breach of your contract by the employer that entitles you to treat the contract as ended and resign. The conduct must be serious, you must resign in response to it, and you must not delay so long that you are treated as having accepted the breach.
Common grounds for constructive dismissal
- Unilateral change to terms and conditions.
- Bullying or harassment.
- Discrimination on a protected ground.
- Unreasonable disciplinary action.
- Failure to address a grievance properly.
- Non-payment of wages or benefits.
- Breakdown in mutual trust and confidence.
When a settlement agreement is offered
Settlement agreements in constructive dismissal cases are usually offered after a grievance has been raised, or after the employee has resigned and a tribunal claim is pending or in early conciliation. The employer uses the agreement to resolve the dispute without going to tribunal.
How we value a constructive dismissal claim
- Strength of the breach evidence.
- Length of service.
- Whether you have mitigated your loss by finding new work.
- Evidence of discrimination or protected characteristics.
- Reputational factors for the employer.
- Compensation for injury to feelings (if a discrimination element exists).
Frequently asked questions
Get expert advice on your settlement agreement today
Speak to a qualified solicitor the same working day. Your employer usually pays the legal fee as part of the agreement itself.