Labour Research (November 2003)

Law Queries

Offer of money to resign

We didn't have a union at our workplace but I tended to speak up for the others when management went too far. My supervisor said that if I wanted to leave the company would be prepared to make me an offer. I was disgusted and resigned. Can I take a claim against them?

In a recent EAT case a woman due to return to work after maternity leave, but who had childcare difficulties, was offered money to leave. The EAT held that this could amount to a breach of contract as it is likely to damage the relationship of mutual trust and confidence. This gives the employee the right to resign and claim constructive dismissal.

* More information: Bates Wells & Braithwaite v MacFarlane EAT/0616/02


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