Constructive Dismissal and Compromise Agreements

A constructive dismissal occurs when an employee resigns in response to an employer's fundamental breach of contract. If this applies, the employee may bring a claim for compensation in an Employment Tribunal.

The law requires that the employee has first raised a formal grievance. Very often, when the employee raises the grievance, the employer seeks to resolve the dispute by way of a compromise agreement. This will usually involve a payment of money in exchange for the employee agreeing not to pursue any employment related claim.

If your employer offers you a compromise agreement, please contact one of our solicitors straight away. It may be that it is a suitable alternative to a Tribunal claim. However, you need to ensure that you are receiving all that you are entitled to.

If you sign your compromise agreement, you will not be allowed to bring a claim for constructive dismissal. It is therefore important that you receive the best advice at an early stage.

Our solicitors will take full details from you of the circumstances that caused you to resign. This will help us to determine your prospects of success. We will then advise you on the amount of compensation you would receive if you were successful and whether or not you would be better off signing the compromise agreement.

You have six months in which to claim constructive dismissal, provided that you raise a grievance. Our solicitors will be happy to advise and represent you in any claim that you decide to bring.

You may want to visit our main Advantage Employment Law website for further details about claiming constructive dismissal.