Employment Law: Unfair Dismissal - Constructive Dismissal - ‘Last Straw’

The case of Bell v The Spirit Cluster Ltd [2005] involved a claim for unfair and constructive dismissal. The utilization tribunal held {that a} series of acts, by the employer, cumulatively amounted to repudiation of the worker’s contract of employment.

The employee was a manager of a national chain of pubs and restaurants. He brought a criticism of unfair constructive dismissal against his employer in the utilization tribunal on the grounds of failure to support him throughout a period of a year during his career. He alleged that:

he had been harassed by the senior managers relating to changes to his and his wife’s single contracts to a lower-paid joint contract;
he had been bullied and his grievance initially ignored;
his grievance had been partially upheld but the bullying had continued;
the employer’s conduct amounted to a fundamental breach of his contract of employment - the implied term of mutual trust and confidence (the reason for his resignation);
his dismissal had been unfair in all the circumstances.
The tribunal found that, in read of the cumulative result of the course of conduct by the employer, there had been a elementary breach of the implied term of mutual trust and confidence in the employee’s contract of employment, and it had been that breach that had been the effective explanation for the worker’s resignation. The worker’s claim of unfair constructive dismissal was upheld. The employer appealed to the Employment Appeal Tribunal (EAT) against that decision. The employer’s attractiveness was dismissed.

The EAT found that:-

the test for constructive dismissal was whether or not the employer’s conduct amounted to a repudiatory breach of the worker’s contract of employment in relation to the implied term of mutual trust and confidence;
a comparatively minor act may be sufficient to entitle the employee to resign if it was the last straw in a very series of incidents;
during this case, nothing had been done to prevent the chain of causation;
the worker had frequently complained concerning the dearth of support, and also the tribunal could not be criticised as a results of its conclusions.
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© RT COOPERS, 2005. This Briefing Note does not provide a comprehensive or complete statement of the law regarding the issues discussed nor does it represent legal advice. It’s supposed solely to highlight general issues. Specialist legal advice ought to continuously be sought in relation to specific circumstances.

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