The manageress of an amusement arcade has been awarded over £10,000
compensation for constructive unfair dismissal. She resigned when she was demoted
from manageress to arcade operative and her pay was cut from £28,000
p.a. to £5.50 per hour.
It was held that 'if an employer attempts to impose a unilateral change in
employment terms, such as in earnings or demotes an employee, then providing
no contractual right exists, the employee will be entitled to resign.'
It should also be emphasised that a constructive dismissal is not necessarily
unfair and a tribunal that makes a finding of constructive dismissal will err
in law if it assumes that the dismissal is unfair without making explicit findings
on the reason for the dismissal and whether the employer has acted reasonably
in all the circumstances.