What is Constructive Dismissal?

The term “constructive dismissal” is misleading in that the employee is not actually dismissed by the employer. In fact, it is a situation that arises when an employee leaves the Organisation without notice when the perceived conduct of the employer leads to the employee feeling they can no longer remain in the job. The employee effectively sees themselves as being unfairly dismissed and can lodge a claim with the Workplace Relations Commission. An employer found guilty of constructive dismissal is subject to the same sanctions as those imposed in respect of any other unfair dismissal.

In order to protect themselves, an Employer should have robust internal grievance procedures in place as they may be considered better protected from claims of constructive dismissal than an Employer who has not.

In previous constructive dismissal cases, it was noted that the employee must demonstrate that they exhausted internal grievance procedures to bring their concerns to the attention of management to have the issue resolved. However, this is not always necessary, particularly in a situation where the person responsible for the conduct of the Employer is the owner/Manager of the Organisation.

A constructive dismissal is a form of unfair dismissal. An Employer found guilty of constructive dismissal is subject to the same sanctions as may be imposed in respect of any other unfair dismissal.

An Employee who feels that he/she has been unfairly dismissed may make a complaint to the Workplace Relations Commission who have the power to investigate the complaint and to seek documentation etc. in relation to the dismissal. An award of compensation of up to 2 years’ salary may be awarded against the Employer where a complaint of unfair dismissal has been upheld. An Employee may alternatively seek to be reinstated into their old position with back pay or re-engaged by their Employer without back pay.

Constructive dismissal is part of the Adare employment law support Service.