Labour Research April 2004

Law Queries

Constructive dismissal

I sometimes read in the press that someone is claiming they have been constructively dismissed. What does this mean and why is it different from a normal dismissal?

A constructive dismissal is one where the employee resigns but claims that this was the only cause of action open to them. To claim constructive dismissal three elements have to be present:

* the employer must have breached the contract;

* the employee must have left as a consequence of that breach; and

* there must have been no significant delay between the breach and the resignation.

An employee claiming constructive dismissal has to lodge a claim within three months of leaving work.

One major difference between ordinary unfair dismissal (where it is the employer who takes the decision to dismiss) and constructive dismissal is that in the latter case it is up to the employee to provide the proof of the reason for leaving.

* More information: LRD booklet, Law at work 2003