In the case of Ashe v , the Employment Tribunal had to consider whether a director was constructively dismissed following a breakdown in the relationship between them and a fellow director.
Facts
The claimant, Ashe, worked as a director of operations for Claims Equilibrium Club Ltd, the respondent. Part of their agreement to join the respondent was an arrangement for the purchase of equity in the organisation, which would result in the claimant taking over the business. This was to be subject to the claimant’s satisfactory performance.
Unfortunately, the relationship began to deteriorate when it was alleged that the claimant wasn’t building the connections they needed to and were losing out on business for the organisation — the claimant’s fee earnings were described as “disappointingly low.” The claimant was told they needed to show leadership to take over the business, but the respondent did not consider this to be forthcoming. The claimant was told they would not receive a bonus and the arrangement was withdrawn.
The claimant raised a grievance. They complained of a “general hostility” towards them, which was “nothing short of bullying and intimidation,” including being told to “shut up” by a fellow director on fortnightly Microsoft Teams meetings that included junior staff. The grievance was partially upheld, but no measures were taken to resolve matters.
The claimant eventually went on sick leave and resigned. They brought a constructive unfair dismissal claim.
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Employment Tribunal (ET)
The ET had to determine whether there was a fundamental breach of contract on the employer’s part; had the implied duty of trust and confidence been breached? The claimant argued that it had, due to the cumulative effect of the respondent’s actions in reneging on the arrangement, failing to address the aspects of the grievance that had been partially upheld, and the bullying behaviour.
After analysing the respondent’s behaviour, the ET established that, whilst there was reasonable and proper cause for some of the respondent’s behaviour, for others there was not. The claimant, it was found, had also contributed to the breakdown in the relationship through their behaviour.
The ET, however, concluded that there had been a fundamental breach of contract which entitled the claimant to resign, and the claimant did resign in response to that breach. As there was no fair reason for a dismissal, the ET upheld the claim for constructive unfair dismissal.
The claim for constructive unfair dismissal was upheld but the award was reduced by 50% due to the claimant’s involvement in the breakdown of the relationship. Total compensation awarded to the claimant was £14,568.
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