Constructive dismissal

Constructive dismissal is explained fully in Chapter 7 but it is worth noting here since an employer who imposes substantially new terms on an employee will be in fundamental breach of contract. This allows the employee to resign and claim constructive dismissal. In fact, in the case mentioned above of Hogg v Dover College, while the EAT held that Mr Hogg had been dismissed by his employer, it also said that as an alternative he would have been entitled to claim constructive dismissal.

In Mostyn v S & P Casuals Ltd EAT 0158/17, Mr Mostyn claimed that his employer’s threat to impose a substantial reduction in pay was a breach of trust and confidence allowing him to claim constructive dismissal. The EAT allowed the claim, holding that the threatened pay cut was a breach of both an express term and the implied term of trust and confidence. His claim was remitted to the tribunal to consider whether dismissal was reasonable in the circumstances.