CIMA BA4 · Chapter 12 · Question 6 of 10
Under English law, an employee resigns because the employer, without consent, cuts her pay by 30%. Which claim is she most likely to bring?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Constructive dismissal
Explanation
Constructive dismissal occurs where the employer commits a repudiatory breach of a fundamental term and the employee resigns in response (Western Excavating v Sharp). A significant unilateral pay cut is such a breach. The resignation is treated as a dismissal, which may then be unfair.
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