C Lucas (Sitting Alone) Dr Joanna J Oliver v Respondent — 2017

The claimant was the respondent company’s CEO and had also been a director and shareholder. She gave a first resignation on 10 February 2016, stating that her employment would cease on 10 August 2016, and the tribunal found that this was an unequivocal resignation. The parties then discussed a transition and handover, during which the claimant worked from home and was expected to step back gradually while remaining available if needed.

The tribunal rejected the claimant’s case that later events amounted to a constructive dismissal. Applying the authorities it cited, including Western Excavating and Omilaju, it held that the removal of the claimant as a director, the instruction that daily bank balances would no longer be sent to her, the redirection of incoming business emails, the suspension letter of 28 April 2016, and the e-mail exchange of 17 and 18 May 2016 did not amount to repudiatory breaches of contract. The tribunal found that the 18 May 2016 email was read by the claimant as a threat to report her to the European Commission, but objectively it was about a project co-ordinator’s request for clarification and was not a threat or a final straw.

The tribunal found that the claimant decided to resign again after the 18 May email and sent a second resignation letter on 20 May 2016, which took effect when read by the chairman that day. On that basis, the tribunal held that she voluntarily resigned on 20 May 2016 rather than being constructively dismissed, so there was no need to consider fairness under s.98 ERA 1996. The separate notice pay and holiday pay claims also failed, because the claimant was not owed notice pay after resigning and had already been paid salary and holiday accrued up to the effective date of termination. The breach of contract and wrongful dismissal claim was dismissed for the same reason: the tribunal found no wrongful summary termination by the respondent and no repudiatory breach entitling the claimant to damages.