ExpertEasy2 marksMultiple Choice
ACCA · Question 10 · Employment law
Section A
Sarah is a senior manager at a marketing firm. Her employer suddenly demotes her to a junior copywriter role with a 40% pay cut, without any disciplinary process or justification. Sarah resigns immediately in response. Which of the following legal claims is Sarah most likely to pursue successfully?
Section A
Sarah is a senior manager at a marketing firm. Her employer suddenly demotes her to a junior copywriter role with a 40% pay cut, without any disciplinary process or justification. Sarah resigns immediately in response. Which of the following legal claims is Sarah most likely to pursue successfully?
Answer options:
A.
Wrongful dismissal only
B.
Constructive dismissal
C.
Redundancy
D.
Summary dismissal
How to approach this question
Identify the legal term for when an employee is forced to resign due to the employer's fundamental breach of contract.
Full Answer
B.Constructive dismissal✓ Correct
Constructive dismissal happens when an employee resigns because the employer has committed a repudiatory (fundamental) breach of the employment contract. A unilateral demotion and massive pay cut is a clear breach of the implied term of mutual trust and confidence, and express terms of pay/status.
Common mistakes
Confusing constructive dismissal with unfair dismissal. Constructive dismissal is the *type* of dismissal; if proven, she can then claim it was unfair.
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