Constructive dismissal – reason or principal reason

Constructive dismissal – reason or principal reason


Overturning the decision of the Employment Tribunal, the Employment Appeal Tribunal has confirmed in the case of Logan v Celyn House Ltd that the principal reason for an employee’s resignation does not need to be a fundamental breach of the contract of employment in order for an employee to succeed in a claim of unfair constructive dismissal.

Ms Logan had raised a grievance involving a number of matters, including alleged bullying and failure to pay contractual sick pay. Her grievance was heard by Celyn and rejected in its entirety. Ms Logan appealed against the grievance decision. Her appeal was also rejected. The Employment Tribunal found that the letter from Celyn rejecting Ms Logan’s appeal against the grievance decision resulted in her resignation.

The failure to pay contractual sick pay was held by the Employment Tribunal to be a repudiatory breach of Ms Logan’s contract of employment. However, the Employment Tribunal did not find that Ms Logan had been constructively dismissed. The Employment Tribunal found that the principle reason for Ms Logan’s resignation was the alleged bullying and not the failure to pay contractual sick pay. The Employment Tribunal rejected her claim on this basis.

Ms Logan appealed to the Employment Appeal Tribunal. The Employment Appeal Tribunal held that when the Employment Tribunal asked itself what the principle reason for the resignation was, it asked itself the wrong question. The Employment Tribunal should have asked itself whether the breach of contract involved in failing to pay the contractual sick pay was a reason for the resignation, not whether it was the principle reason. It was enough that Ms Logan resigned, at least in part, in response to the fundamental breach of failing to pay contractual sick pay.