Claimant v Claims Equilibrium Club Ltd
Outcome
Individual claims
The tribunal found a cumulative breach of the implied duty of trust and confidence through: withdrawal of the equity purchase agreement without consultation; failure to deal with the claimant's sickness absence; undermining the claimant by telling him to 'shut up' during staff meetings in front of junior staff. These acts, taken cumulatively and judged objectively, meant the claimant could not reasonably be expected to put up with the conduct. The claimant resigned in response to this repudiatory breach.
Facts
The claimant was recruited in April 2022 as Director - Operations with an agreement to purchase up to 50% equity in the insurance claims assistance business. The relationship with the Managing Director deteriorated over performance concerns, culminating in withdrawal of the equity purchase opportunity and a grievance which was partially upheld. The claimant went off sick with work-related stress in July 2024 and resigned in September 2024, citing breach of trust and confidence due to the withdrawal of the equity agreement, failure to address the grievance outcome, failure to manage his sickness absence, and bullying behaviour.
Decision
The tribunal found the claimant was unfairly constructively dismissed. The cumulative effect of the employer's conduct—withdrawing the equity purchase agreement without consultation, failing to manage the claimant's sickness absence in circumstances where the relationship had broken down and grievance issues remained unresolved, and undermining the claimant in staff meetings—breached the implied duty of trust and confidence. However, the claimant's conduct contributed 50% to the breakdown: his performance had deteriorated, he refused to follow reasonable instructions, and he behaved in a challenging manner whilst off sick. Awards were reduced by 50% for contributory fault.
Practical note
An employer may commit a repudiatory breach through a cumulative course of conduct even where some individual acts have reasonable explanations, but substantial contributory fault reductions will apply where the employee has significantly contributed to the breakdown in the relationship through poor performance and failure to follow instructions.
Award breakdown
Award equivalent: 12.6 weeks' gross pay
Adjustments
The claimant was found 50% responsible for the breakdown in the relationship. His blameworthy conduct included: dramatic drop in fee income, refusal to copy emails to the shared inbox as instructed, and challenging/confrontational behaviour whilst on sick leave (including working on files whilst refusing to provide details to the employer). The tribunal reduced both the compensatory award (from £27,736 to £13,868) and the basic award (from £1,400 to £700) by 50%.
Legal authorities cited
Statutes
Case details
- Case number
- 8002150/2024
- Decision date
- 16 June 2025
- Hearing type
- full merits
- Hearing days
- 3
- Classification
- contested
Respondent
- Sector
- financial services
- Represented
- Yes
- Rep type
- in house
Employment details
- Role
- Director - Operations
- Salary band
- £60,000–£80,000
- Service
- 2 years
Claimant representation
- Represented
- Yes
- Rep type
- solicitor