Settlement negotiations do not preclude a claim of constructive dismissal
  • 23rd May 2016
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The High Court has ruled that an Employee’s willingness to negotiate a termination package, does not prevent him from being constructively dismissed.

The Claimant was the assistant manager at Leeds United and when the manager he worked for was dismissed he assumed that he would also be dismissed.  The parties entered into settlement negotiations.  However, it was agreed that he would continue in his role, while negotiations to agree a consensual departure were ongoing.

When the Employer sent the Claimant a letter, excluding him from training the first team and instead, requiring him to work with the youth academy, the Claimant resigned in response.

The High Court held that the Claimant was not a breach of contract. The mere fact that the Claimant  was willing to negotiate a termination package, did not mean that he was not ready and willing to fulfil his duties. The Employer’s email was found to be repudiatory, it was, in effect, a demotion and the Claimant was entitled to succeed in his claim for notice pay.

If you would like advice on this or any other employment issue, please contact Louise Purcell on 01622 698001