Cases1800845/2022

Claimant v A Ltd

21 July 2025Before Employment Judge DeeleyLeedshybrid

Outcome

Claimant succeeds£36,137

Individual claims

Constructive Dismissalsucceeded

The tribunal found that the owner/Managing Director engaging in sexual intercourse with the claimant's wife during a business trip breached the implied term of trust and confidence, making it untenable for the claimant to continue working for the small company where he reported directly to this individual. The claimant resigned because the relationship was irretrievably damaged, even if the intercourse had been consensual.

Facts

The claimant was a Production Supervisor with over 24 years' service who resigned in November 2021 after the respondent's owner/Managing Director engaged in sexual intercourse with the claimant's wife during a business trip in September 2021. The claimant was off sick from September 2021 until his resignation. He continued to suffer from stress-related symptoms and became a carer for his wife. He worked intermittently as a self-employed bricklayer from February 2022 onwards, initially for his father-in-law and later for a family friend on an ad hoc basis.

Decision

The tribunal awarded a total of £36,136.61 for unfair constructive dismissal, comprising a basic award of £11,020.09 and a compensatory award of £25,116.52 (capped). The tribunal found the claimant did not fail to mitigate his loss until January 2025, when he should have obtained regular bricklaying work. The respondent's argument that losses did not flow from their breach of trust and confidence was rejected — the tribunal found the claimant resigned because it was untenable to continue working for the small company, even if the sexual intercourse had been consensual.

Practical note

Where an employer's conduct breaches trust and confidence making continued employment untenable, the employer cannot escape liability by arguing the employee's losses flow from their subjective belief about what occurred rather than from the objective breach itself.

Award breakdown

Basic award£11,020
Compensatory award£25,117
Loss of statutory rights£500

Legal authorities cited

Wood v MitchellPolkey v A E Dayton Services Ltd [1988] ICR 142Cooper Contracting Limited v Lindsey UKEAT/0184/15W Devis and Sons Ltd v Atkins [1977] ICR 662

Statutes

ERA 1996 s.98ERA 1996 s.123

Case details

Case number
1800845/2022
Decision date
21 July 2025
Hearing type
remedy
Hearing days
2
Classification
contested

Respondent

Name
A Ltd
Sector
manufacturing
Represented
Yes
Rep type
barrister

Employment details

Role
Production Supervisor
Service
25 years

Claimant representation

Represented
Yes
Rep type
barrister