An employer unilaterally cuts an employee's salary by a quarter without agreement. The employee resigns promptly in response. Following Western Excavating v Sharp, what is the employee most likely able to claim?

Correct answer: C) Constructive dismissal, because the employer committed a repudiatory breach of a fundamental term

Explanation

Constructive dismissal occurs where the employee resigns in response to a repudiatory breach of contract by the employer. Western Excavating v Sharp established that the employer's conduct must be a significant breach going to the root of the contract, not merely unreasonable behaviour. A unilateral substantial pay cut is a classic example, and the employee should resign without undue delay to avoid being treated as accepting the change.