posted 6th August 2025
Constructive Dismissal – What Employers Need to Know
A constructive dismissal occurs when an employee resigns due to a serious breach of their employment contract by the employer.
For employers, these claims can be costly and reputationally damaging.
At Meridian Legal Services, we help employers prevent constructive dismissal claims and defend their position if one arises.
What Is Constructive Dismissal?
Constructive dismissal happens when:
- An employer fundamentally breaches the employee’s contract.
- The employee resigns in response to that breach.
Examples include:
- Reducing pay or changing working hours without agreement.
- Demoting an employee without cause.
- Ignoring workplace bullying or harassment complaints.
- Failing to provide a safe working environment.
Legal Risk for Employers
Constructive dismissal claims are often complex because employees must prove:
- A fundamental breach of contract occurred.
- They resigned because of that breach.
- They did not delay in resigning after the breach.
If an employment tribunal finds in favour of the employee, employers may face significant compensation costs and reputational harm.
How Meridian Legal Services Helps Employers
- Policy & Process Review: We ensure your employment policies are legally compliant and reduce risk.
- Grievance Handling: Support in resolving disputes before they escalate.
- Training & Advice: Coaching for HR and management teams on fair practices.
- Defending Claims: Representation at tribunals if an employee brings a constructive dismissal claim.
- Settlement Solutions: We negotiate settlement agreements to resolve disputes swiftly where appropriate.
Prevention Is Better Than a Cure
The best way to avoid constructive dismissal claims is to maintain open communication and handle workplace changes sensitively. We help businesses build strong HR frameworks that reduce risk and maintain positive employee relations.
Contact Meridian Legal Services
If you are concerned about potential constructive dismissal risks or facing an existing claim, speak to our expert team today. Contact us here for practical, proactive legal support.
