A Case of Constructive Dismissal

14 Mar 2011

The UK Court of Appeal has affirmed that in an action by an employee for constructive dismissal, the test is whether the employer has shown an intention to abandon and refuse to perform the employment contract. This will require an objective assessment of all the circumstances that are relevant to showing the employer’s intention towards the employee.

This case affirms the principles applicable to constructive dismissal.

The Singapore High Court has adopted similar principles in a claim for constructive dismissal. In Ramzi Toufic Fares v Aidec Management Company Pte Ltd [1998] SGHC 208, the plaintiff alleged that he had been constructively dismissed as certain key functions had been taken from him in breach of his employment contract and he had also been demoted and sidelined after a re-organisation of the company. The court found that there was no constructive dismissal as the plaintiff’s allegations could not be substantiated.

The court applied the test that all relevant circumstances should be objectively assessed to determine the employer’s intention towards the employee to ascertain if there had been constructive dismissal.

Tullett illustrates that, in an action for constructive dismissal, a court will look at the facts of each case holistically. In that case, it was incorrect to point selectively to Tullett’s attempt to persuade the employees not to proceed on the forward contracts with BGC, and cast it as evidence of a breakdown of trust and confidence. The totality of the evidence showed that Tullett, in fact, wished to preserve the employees’ employment relationship with Tullet.

To read the update, please click here.