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Constructive Dismissal:

 

Constructive dismissal may arise where an employee resigns because of the conduct of the employer.  This conduct must amount to a serious breach of contract which entitles the employee to leave without notice.

 

For example, Z was employed by a large multinational company.  He was accused of having alleged that a colleague had taken bribes.  Z was suspended.  For six months he repeatedly asked his employers for details of the charges against him.  These were not forthcoming.  Z became extremely ill and eventually resigned.  He complained of constructive unfair dismissal.

 

The employment tribunal upheld the complaint and awarded him maximum compensation.  It ruled that Z’s resignation amounted to constructive unfair dismissal because the employers had committed a fundamental breach of contract in suspending him for a long period without giving him proper information.