Constructive Dismissal Affect Employee Retention Strategies
Employee retention strategies often focus on training, compensation and incentives for the employee. However, there is a dark side to employee retention: constructive dismissal. It’s a term used to describe an employee who resigns from their job after experiencing intolerable working conditions and feels that they can no longer tolerate their employer’s conduct or treatment. Identifying and preventing these situations can help you avoid costly claims for wrongful termination.
There are a number of reasons an employee may be able to make a claim for constructive dismissal, and it depends on the situation in which the claim arises. In order to prove a case for constructive dismissal, an employee must be able to show that their employer has created intolerable working conditions, forcing them to resign. This is a high standard and requires that employees have sufficient evidence to support their claim. This is why it’s important for employers to understand the signs of a constructive dismissal and what actions they can take to prevent them.
The first and most obvious reason for an employee to consider a constructive dismissal claim is that their employer has changed the terms of their contract with them unilaterally. This can include a reduction in pay, change of work location, changes to hours and duties, or other such drastic changes. This is a complex issue and every case will be judged on its own circumstances, but courts are generally wary of employers imposing significant change to an employee’s work environment.
How Does Constructive Dismissal Affect Employee Retention Strategies?
Another common ground for a constructive dismissal claim is when an employer breaches the implied term of trust and confidence. This is an agreed-upon term that was developed through case law and stipulates that an employer must act in a way that preserves the relationship between them and their employees. It’s not specifically written in an employee’s contract, but it’s generally understood to exist. This can be in the form of a single incident or a pattern of behaviour.
An example of this would be singling an employee out for constant criticism at team meetings, or demeaning them in front of their colleagues. This can destroy employee morale and create an environment that’s not conducive to good employee retention. It’s also illegal for employers to retaliate against an employee who brings up workplace concerns or issues. This can include being left out of team trips, demoted to the youth squad and reprimanded for speaking out.
In these situations, it’s best for employees to notify management or someone in a position of authority of the intolerable working conditions as soon as they notice them. This gives the employer a chance to remedy the situation and avoid a constructive dismissal lawyer near me, and it will also ensure that the employee doesn’t leave their job before the breach occurs and is unable to file a claim for wrongful termination. If the employee does decide to resign, it’s essential that they work their notice period. Otherwise, their local Jobs and Benefits office or JobCentre may be unable to process their Jobseeker’s Allowance claim.