“Court of Appeal establishes contractual test for constructive dismissal claims”
Sharp, an employee of Western Excavating, was suspended without pay for taking unauthorized time off. When he requested an advance on his holiday pay and was refused, he resigned and claimed constructive dismissal. The employment tribunal found in his favor, but this was appealed.
What test should be applied to determine whether an employee has been constructively dismissed - the contractual test or the unreasonableness test?
The Court of Appeal held that the contractual test should apply for constructive dismissal. The employer's conduct must amount to a repudiatory breach of contract, and the employee must accept this breach by resigning without delay.
This case established the fundamental legal framework for constructive dismissal claims that remains authoritative today. It provided certainty by anchoring constructive dismissal in established contract law principles rather than subjective tests of reasonableness.
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OSCOLA Citation
Western Excavating (ECC) Ltd v Sharp [1978] QB 761 (CA)
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