Constructive Dismissal Case

akira181

I'm asking for a friend here, without going into details as the situation is still developing, basically he is being bullied in the workplace for something someone else has done (named Person X going forward) and Person X is trying to pin the blame on him by spreading false rumours.  Person X is friends with the manager, whom in turn is friends with upper management and they seem to have each others backs.  My friend has registered a complaint with upper management, which appears to have fallen on deaf ears, potentially because upper management and his direct manager believe the false rumours despite there being no evidence to support it.

Person X has finally gone too far and there is now tangible proof that they are lying, to which other members of staff can apparently attest.  However, their manager is setting up scenarios for himself and Person X to continue the false rumours in official settings, such as team meetings, and encouraging people to blame my friend.  A union rep says there is a case for constructive dismissal as my friend has an impeccable work record and the actions of management have made it near impossible for him to reasonably continue working there without significant changes.

However, it is a relatively small company and the union rep said the payout could potentially be quite large.  My friend is concerned that a constructive dismissal case could potentially bankrupt the company as business has slowed a lot during this pandemic and there are already talks of budgeting issues.  My friend isn't the type of person that would put everyone out of a job just because of the malicious actions of a few people, he would rather quit if things got bad enough, putting his family and mortgage under financial strain.  

He's currently pursuing other options with the union rep but he's wondering how likely is it that a tribunal would award a compensation claim that would potentially bankrupt a company?  The union rep was kind of unclear about it but believes it possible.

lincroft1710

Until your friend resigns, he can't bring a claim for constructive dismissal.

If the firm is going down the pan, then it may be dissolved before your friend's claim could be heard. Even if it was still solvent at the time of the hearing but in poor financial state a substantial award against could push it over. 

AndrewXII

I agree with lincroft1710 comment. 
1. Legally, there is no case of constructive dismissal unless your friend resigns.
2. Winning a case at the Employment Tribunal require extensive evidence. If your friend has such intention, regardless of the end action, he should try to collect the evidence and evaluate his case. 
3. It is in general encouraged to try to resolve the case first before bringing a claim to the Tribunal. If your friend's company has grievance policy, it may worth putting a grievance through. Your friend maybe able to agree on a settlement with the company without bringing the case to the Tribunal. 

Diamandis

The thing that strikes me here is whatever it is they're being accused of clearly isn't enough to be dismissed (is it likely to have an impact on what they are paid?) so your friend leaving their job because of a rumour might not be seen as reasonable. How serious is the thing they're accused of? 

They really would have to raise a formal grievance too.

I'd probably stop worrying about the huge payout, it's very unlikely. 

sassyblue

constructive dismissal is still a difficult case to bring even with evidence. I agree with Diamandis, you are not likely to end up with a payment big enough to bankrupt a company!

Manxman_in_exile

akira181 said:

 My friend isn't the type of person that would put everyone out of a job just because of the malicious actions of a few people, he would rather quit if things got bad enough, putting his family and mortgage under financial strain. 

I hate to say this of someone I've never met, but, to be honest, that's plain daft and irresponsible.

Anyway, as others have said, it's difficult to win a constructive dismissal claim in the first place, and if he did, the size of any award would only be likely to finish of an employer that was already on the rocks.

thebrexitunicorn

The maximum award is the equivalent of statutory redundancy plus a maximum of one year’s pay compensation for losses.  Very few people are awarded the maximum.  

Undervalued

thebrexitunicorn said:

The maximum award is the equivalent of statutory redundancy plus a maximum of one year’s pay compensation for losses.  Very few people are awarded the maximum.  

Indeed. Plus less than 3% of constructive dismissal claims that progress as far as a tribunal actually succeed.

steampowered

Your post doesn't say that has actually happened that is making it impossible for your friend to continue working for this company?

"Spreading rumours" and "lying" is childish playground type stuff that people should grow out of before they are 12.

Do the "rumours" actually matter or can they be safely ignored?

akira181

he has registered a grievance with his manager and nothing has happened, instead his manager engineered a situation where Person X could spread the rumours at a team meeting unchallenged.  The union rep also requested a meeting with upper management to discuss the grievance and they have ignored it for 2 weeks at least.  Possibly because the managers and Person X are all golf buddies and are attempting to look out for each other. 

From what I understand, the only reason he hasn't been dismissed is because there's no proof to support the rumours as none of it's true; but that hasn't stopped upper management sending an email saying they "know" who the culprit is and expect them to come forward to give a public apology and deal with it from there.  Utterly bizarre behaviour that led to nothing, that appears to be the kind of playground workplace he's in.

Unfortunately, Person X is continuing the rumours and his manager is not providing any support, which makes it significantly harder to do his job and in some situations, dangerous.  It's also just a very toxic environment as colleagues that believe the rumours are not being pleasant either and it's affecting his mental health.  The issue is related to stealing and leaking some relatively sensitive information, which has caused some people harm professionally and personally.   The union rep and my friend believe was done by Person X and apparently have tangible evidence, although he hasn't told me what it is.

He is on the verge of quitting without a new job but that's the type of idiot he is, too nice for his own good.  He'd rather go and stack shelves in a supermarket for min wage than bankrupt a company that provides rather important support to it's clients, as well as the few friends he still has working there. 

Since the tribunal is unlikely to follow all the way through or be large enough if awarded to bankrupt the company, I'll let him know, maybe he'll be willing to use the threat of it as leverage to get the grievance rolling or best case, a change of management.  With a constructive dismissal case so complicated and unlikely to work, I'm surprised the union rep brought it up.  He has a meeting with the union soon to go into details, hopefully they'll get it resolved.  

lincroft1710

akira181 said:

the managers and Person X are all golf buddies

Which is only one step down from being in the same Masonic lodge. 

Since the tribunal is unlikely to follow all the way through or be large enough if awarded to bankrupt the company, I'll let him know, maybe he'll be willing to use the threat of it

I doubt his employers would be scared by a threat of an ET and probably know his character well enough to realise he wouldn't actually go through with it.   

as leverage to get the grievance rolling or best case, a change of management. 

I can't see the latter happening.....
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See above   .