Why use this calculator
Constructive dismissal occurs when an employer's conduct is so unreasonable that you feel compelled to resign. These claims are notoriously difficult to prove but can result in significant compensation. This calculator helps you estimate the potential financial outcome of a constructive dismissal claim by combining the statutory basic award with compensatory elements for lost earnings, benefits, and statutory rights.
How to use it
Enter your weekly salary, years of service with the employer, the value of any benefits you have lost (health insurance, pension contributions, car allowance, etc.), and the estimated number of weeks of future earnings you expect to lose before finding comparable employment. The calculator computes both the basic and compensatory awards.
The formula
Basic Award = Capped Weekly Pay x Years of Service (max 20). Compensatory Award = Future Earnings Loss + Lost Benefits + Loss of Statutory Rights ($500), capped at the statutory maximum (~$105,707). Total = Basic + Compensatory.
Worked examples
Employee earning $1,200/week with 6 years of service, $5,000 lost benefits, 26 weeks future loss
Basic award of $3,858 plus compensatory award of $36,700 for total of $40,558
Employee earning $2,000/week with 12 years of service, $10,000 lost benefits, 20 weeks future loss
Basic award of $7,716 plus compensatory award of $50,500 for total of $58,216
When people use it
- Employees considering resignation due to employer breach of contract
- Legal advisors assessing the viability and value of constructive dismissal claims
- Employers evaluating their exposure from ongoing workplace issues
- Settlement negotiations where constructive dismissal is alleged
Tips
- You must resign in response to a fundamental breach of contract by your employer; simply being unhappy at work is not sufficient
- Do not delay your resignation too long after the breach, as this may be seen as accepting the employer's conduct
- Keep detailed records of all incidents, communications, and attempts to resolve issues through internal grievance procedures
- Seek legal advice before resigning, as constructive dismissal claims have a high evidential burden
Questions people ask
- What constitutes a fundamental breach of contract?
- Examples include: significant pay cuts without agreement, demotion without justification, bullying or harassment that the employer fails to address, unilateral changes to job duties or working conditions, and a fundamental breakdown in the duty of mutual trust and confidence.
- How difficult is it to win a constructive dismissal claim?
- Constructive dismissal claims are among the most difficult employment claims to succeed with. You must prove that the employer committed a fundamental breach of contract, that you resigned because of that breach, and that you did not delay too long before resigning. Thorough documentation is essential.
- Do I need to raise a grievance before resigning?
- While not legally required, failing to raise a formal grievance before resigning can reduce your compensation by up to 25% under the ACAS Code of Practice. It also strengthens your case by showing you attempted to resolve the issue internally.