Victories for employers accused of wrongful dismissal
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Constructive dismissal occurs when your employer's conduct forces you to resign. Many employees don't realize they have strong claims, making settlement agreements particularly valuable in these situations.
What Constitutes Constructive Dismissal?
You may have a constructive dismissal claim if your employer:
- Unilaterally changes your contract terms
- Fails to pay agreed wages
- Allows bullying or harassment
- Demotes you without justification
- Creates an impossible working environment
- Breaches trust and confidence
The Legal Test
To succeed in a constructive dismissal claim, you must show:
- Your employer committed a serious breach of contract
- You resigned in response to that breach
- You didn't delay too long before resigning
- You didn't affirm the breach
Settlement Before Resignation
Ideal scenario: Negotiate a settlement agreement before you actually resign. This preserves your employment status during negotiations and often leads to better outcomes.
"If you're considering resignation due to your employer's conduct, seek legal advice first. A pre-resignation settlement agreement can be worth significantly more."
Common Mistakes
1. Resigning Without Advice
Once you've resigned, your negotiating position may weaken. Get advice before taking action.
2. Delaying Too Long
Continuing to work normally after a breach may be seen as acceptance of the new situation. Act promptly if you're considering a constructive dismissal claim.
3. Failing to Document Issues
Keep detailed records of:
- Incidents and breaches
- Complaints you've raised
- Your employer's responses (or lack thereof)
- Impact on your health and wellbeing
If you're facing an intolerable work situation, contact our team before you resign. We can advise on the best strategy and negotiate on your behalf.
