What Is Constructive Dismissal Compensation?
Constructive Dismissal Compensation
A constructive dismissal claim is a serious allegation that an employer has breached the terms of your contract of employment. It can be triggered by a single incident or a series of incidents which cumulatively create intolerable working conditions. Common reasons for a constructive dismissal include: being refused a promotion, being demoted without reason, excessive or unreasonable workloads, unwelcome changes to your working arrangements which are not within the terms of your contract (night shifts, for example), and verbal or physical abuse.
There are a number of criteria which must be met in order for a claim to be successful, and it is up to you to demonstrate that your employer’s behaviour has reached this point. This is why it is vital that you document all instances of misconduct from your employer in writing – emails, voicemails and texts are all excellent pieces of evidence to support a claim. It is also important to speak with an experienced employment lawyer before proceeding to ensure that your case has a strong chance of success and that you are well protected throughout the process.
The statutory cap of compensation for constructive dismissal is currently one year’s salary or PS89,493 (as of 6th April 2024). This figure is calculated using your gross salary only and does not take into account your pension contributions, bonus or any other income. However, tribunals will take into consideration sums received from alternative employment during your notice period when assessing your loss.
What Is Constructive Dismissal Compensation?
It is also crucial to bear in mind that if you resign from your job in the heat of the moment without giving your employer the opportunity to put things right, you risk losing out on any compensation award. It is important to think carefully about your decision before making such a move, and consider seeking legal advice or speaking to your union if you are having issues with your work.
A major problem for many employees who are claiming constructive dismissal is that they do not demonstrate a sufficient level of hardship. This can be due to financial limitations, the impact on their self-esteem and pride or even a lack of suitable job opportunities in their area. It is therefore important to keep your resume updated and look for new job openings that match your qualifications and experience, but do not badmouth your previous employers during interviewing.
While it may be tempting to resign as a result of a hostile workplace, you must be aware that the process is not easy and can be very time consuming. You should try to resolve the issue through formal channels with your employer or seek help from a lawyer if you are considering this course of action. If you are a victim of constructive dismissal, contact us for a free consultation. We have a team of experienced attorneys who can evaluate your case and provide guidance on how to proceed. We will not charge you a fee unless we win your case.