How much might my constructive dismissal claim be worth? Part 2 of 4

Part 2 of 4

How much might my constructive dismissal claim be worth?

Wrongful dismissal

The employee resigns without notice, such a claim will be for notice pay.

Constructive unfair dismissal

Constructive unfair dismissal does not mean unfair in the moral sense but legally unfair.

Where the employee has at least two years’ service, the employee can claim constructive unfair dismissal.

In exceptional circumstances, an employee will be able to claim automatic constructive unfair dismissal with less than two years’ service, for example if the employee has been subject to a detriment for making a protected disclosure (commonly known as ‘whistleblowing’).

The compensation for a claim will be a basic award (which is calculated the same way as statutory redundancy pay) and compensation for future loss of earnings (currently capped at the lesser of 12 months pay or £105,707 (from April 2023)).

The employee’s actual compensation will be for the amount of time they were, or are likely to be, out of work. There are also other factors that may reduce the award or, where there is a failure by the employer to comply with the grievance process set out in the ACAS code of practice, increase it by up to 25% (within the cap).

In the exceptional cases of automatic unfair dismissal, the compensation for future loss of earnings will not be capped at £105,707 e.g. if the breach of contract relates to a detriment suffered by the employee for making a protected disclosure (i.e. whistleblowing) or is discriminatory.

Unlike wrongful dismissal, the employee may resign with or without notice.

Article by

Louise Maynard

Our expert employment law solicitors all have many years’ experience advising individuals who are in your position. We will be able to guide you through the process and to help you secure the best possible outcome.

We offer a range of services, so please contact our friendly customer services team to discuss further via hello@kilgannonlaw.co.uk or 0800 915 7777.

Disclaimer

The above provides a general overview relating to constructive dismissal and is not intended nor construed as providing specific legal advice. Constructive unfair dismissal is a complicated legal claim. An individual should take legal advice from an employment lawyer if they believe their employer has behaved in such a way that entitles the employee to resign and bring a claim for constructive unfair dismissal.

This article is for information purposes only and is correct at the time of publication. It does not constitute legal advice.

29.03.2023

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