Claimant v A One Distribution (UK) Limited
Outcome
Individual claims
The tribunal found that the respondent's conduct over March 2023 regarding the cable issue - blaming the claimants, demanding £19,000 payment, threatening wage deductions, proposing commission structure changes, and the hostile meeting on 4 April 2023 - cumulatively amounted to a fundamental breach of the implied term of trust and confidence entitling both claimants to resign. The respondent acted without reasonable and proper cause in a manner likely to destroy or seriously damage the employment relationship.
Both claimants were entitled to their contractual notice pay. The first claimant gave one month's notice from 4 April to 4 May 2023, the second claimant from 4 April to 12 May 2023. Any failure to pay correct notice pay for these periods will be addressed at the remedy hearing.
Withdrawn by the claimants at the preliminary hearing on 26 June 2024.
Withdrawn by the claimants at the preliminary hearing on 26 June 2024.
The first claimant withdrew this complaint, which had been brought under a second claim form (case number 2407390/2023), at the preliminary hearing on 26 June 2024.
The first claimant's application to amend to include a claim under section 100 ERA 1996 (health and safety) was refused by the tribunal as it was significantly out of time, misconceived, could have been brought earlier, and would cause prejudice to the respondent by necessitating postponement of the final hearing.
Facts
Two sales employees with long service (19 years for claimant 1, similar for claimant 2) resigned in April 2023 following a series of events in March 2023 concerning non-compliant power cables. The managing director blamed the sales team, demanded they each pay £19,000 towards losses, threatened wage deductions, then proposed commission structure changes when employees refused. This created a hostile and uncertain environment. The first claimant resigned after a confrontational meeting on 4 April 2023; the second claimant resigned the same day while on holiday after being contacted by the managing director.
Decision
The tribunal found both constructive unfair dismissal claims well-founded. The respondent's conduct over March 2023 - blaming employees, demanding large payments, threatening deductions, proposing commission changes, and creating a hostile environment - cumulatively breached the implied term of trust and confidence. The claimants resigned in response without delay and did not affirm the contract. Notice pay claims also succeeded. The case was listed for a remedy hearing.
Practical note
Employers must not respond to business losses by improperly blaming employees, threatening unlawful wage deductions, and creating a hostile environment through aggressive communications and retaliatory measures - even in a small 'family-like' business, such conduct will destroy trust and confidence and justify constructive dismissal.
Legal authorities cited
Statutes
Case details
- Case number
- 2407352/2023
- Decision date
- 26 September 2025
- Hearing type
- full merits
- Hearing days
- 5
- Classification
- contested
Respondent
- Sector
- technology
- Represented
- Yes
- Rep type
- barrister
Employment details
- Role
- Sales Manager (Claimant 1), Sales Adviser (Claimant 2)
- Salary band
- Under £15,000
- Service
- 19 years
Claimant representation
- Represented
- Yes
- Rep type
- lay rep