Employment Law Case Update: Constructive Unfair Dismissal and Breach of Contract

Breaching the terms of an employees' employment contract will have serious ramifications for employers and so before any decisions are made you should ensure that your actions will not have consequences.  Our Employment Law team today reviews the case of Mr G Mason v Park Holidays (UK) Limited 2020 and whether an employee who was forced to vacate his on-site accommodation was constructively unfairly dismissed. 

When he was hired by Park Holidays as a maintenance supervisor, Mr Mason was told that accommodation “went with the job”. His contract of employment included an accommodation clause that his offer of accommodation “may be reviewed and/or withdrawn at any stage but only after a period of consultation”.

Mr Mason lived in the caravan unit on-site with his partner and daughter. His daughter has “significant learning difficulties” and Mr Mason had to arrange special transport from the site in order for her to attend a special school. Moving home would require Mr Mason to rearrange the transport or schooling for his daughter; an arduous process which would take considerable time.

In October 2019, the District Council informed the company that it would only permit two caravans to be occupied by staff during the park’s closed season from November to March. Mr Duffy, the regional manager, and Mr Airs, the park’s general manager, decided that only the park warden and the retail manager would be permitted to remain on-site. They did not consult with any affected employees before making this decision.

Mr Airs informed Mr Mason that he and his family had two weeks to move out of their on-site accommodation, but that they would be able to return in March. Mr Mason was shocked as he had received no warning that his accommodation was at risk. Moving his family on such short notice was complicated by his daughter’s schooling needs, which the company was aware of. He and his partner were forced to accept “unsuitable” accommodation about eight miles from the park because they were “desperate.”

Mr Mason was then informed that he would not be allowed to return to his accommodation. He filed a complaint with HR and asked that this decision be reconsidered in light of his family’s circumstances. Mr Duffy met with Mr Mason and offered him a siting manager position at one of the company’s sites in Clacton. Mr Mason accepted the position as he did not want to be without a job. He was subsequently informed that he would not be stepping into a siting manager role, and that his new position was effectively a demotion to team member. Mr Mason complained to Mr Duffy about the confusion over his new role, but he never received a reply and nothing ever came of his complaint.

Two days after working at the Clacton site, Mr Mason was signed off sick due to stress by his GP. In March 2020 he resigned, saying he had lost all trust and confidence in the company. He subsequently filed a claim in the Employment Tribunal (ET) for constructive unfair dismissal and for breach of contract.

The ET found that the company’s conduct from November to March amounted to a breach of the implied term of trust and confidence. The company had failed to consult with Mr Mason about the withdrawal of accommodation, despite his employment contract expressly stating that accommodation could only be withdrawn after a period of consultation. The company had also failed to give Mr Mason adequate notice that they required him to vacate his accommodation, especially considering his daughter’s special needs. Finally, the ET found that Mr Mason was not given a manager role as he had been promised, and that confusion over his new role at the Clacton site had been the “final straw.” The company had breached the implied term of trust and confidence and this breach was “a substantial reason for [Mr Mason’s] decision to resign”.

The ET awarded Mr Mason £9,362.87 in compensation for being constructively unfairly dismissed. It also awarded an additional £2,540 in damages for breach of contract for failing to pay Mr Mason notice pay.

This case reminds employers why it is important to consult with employees about any big decisions that will affect their employment. Employees should be kept informed throughout the decision making process and given the opportunity to suggest alternatives, especially if they may be negatively impacted by any action the employer decides to take. Employers should also keep a record of the consultation process, including any letters and meeting notes.

If you have any questions regarding this article, you can call our Employment team today on 023 8071 7717 or email employment@warnergoodman.co.uk.

This was previously part of our weekly Employment Law Newsletter. If you would like to subscribe, please email us at events@warnergoodman.co.uk or just fill in our subscription form.

ENDS

This is for information purposes only and is no substitute for, and should not be interpreted as, legal advice.  All content was correct at the time of publishing and we cannot be held responsible for any changes that may invalidate this article.