In this weeks Landmark case we look at the matter of Constructive Dismissal and a vital issue that an employer needs to be aware of when it comes to this type of claim. Background In the case of Philip Chubb –v- Select Retail Holdings (UD954/2006) the matter at hand was the issue of constructive dismissal of the employee. The employee alleged that the employer was pushing him out the door, and as a result he was being constructively dismissed.
Summary In this case the employee contends that he had consistently sought a role profile from the employer, and that the employer was also unwilling to offer him redundancy. The employee further contends that he tried to resolve the issues amicably with the employer, however was unsuccessful in doing so and had no option but to leave employment. Section 2 of the Unfair Dismissals Act, 1977, defines Constructive Dismissal as “the termination by the employee of his contract of employment with his employer, whether prior notice of the termination was or was not given to the employer, in circumstances in which, because of the conduct of the employer, the employee was or would have been entitled, or was or would have been reasonable for the employee to terminate the contract of employment without giving prior notice of termination to the employer.” Essentially there must be a breach in the employment contract by which the employee can no longer continue to remain in employment, and it is reasonable for them to terminate their employment. In the decision reached by the tribunal it was held that he was not unfairly dismissed, and that the employees role changed as his career progressed, these changes were in the context of developing a modern business and did not diminish the employee’s seniority or responsibility. On the matter of redundancy the tribunal held that a redundancy situation did not occur and as such he was no constructively dismissed. The tribunal stated "...the claimant’s role changed as his career progressed, the change was within the overall structure of the Human Resource function. The changes were in the context of a developing modern business and did not diminish the claimant’s seniority or responsibility. The Tribunal is satisfied that the claimant continued to occupy an operational role at senior level consistent with his professional experience after the acquisition." Impact The impact of this case is that the tribunal’s assertion that a role may change in the context of developing a modern business is a significant one, as this inherently states that an employee can expect their role to be amended from time to time to cope with the changing business environment. As such the claim for constructive dismissal is not well founded on this basis. However it must be stated that in cases where there is a considerable change to the person’s job functions, such as in Coleman v S&W Baldwin (1977) IRLR 342, then a claim for constructive dismissal may be well founded.
