what is constructive dismissal

Constructive dismissal, also known as constructive discharge or constructive termination, is a legal term used in employment law. It occurs when an employee resigns as a result of the employer creating a hostile work environment or intolerable working conditions that violate employment legislation. In constructive dismissal, the resignation is not truly voluntary because the employer has made the working conditions so intolerable that the employee has no reasonable alternative but to resign. Examples of intolerable working conditions include a demotion, altering the employees reporting structure, job description or working conditions, lowering an employees compensation, changing hours of work, imposing a suspension or leave of absence, and relocating the employees workplace. To prove constructive dismissal, the employee must show that the conditions giving rise to the resignation were sufficiently extraordinary and egregious to overcome the normal motivation of a competent and reasonable employee to remain on the job. While constructive dismissal is a contractual claim, it can be made in a tribunal for up to £25,000 or in court without limit.