Constructive Dismissal triggered by relegation to a junior desk? Walker v Robsons (Rickmansworth) Limited (Case Number 3311699/2023)

Background

Mr Walker joined Robsons (Rickmansworth) Limited (“the Company”) in May 2015. Between 2017 and 2022, he worked at Robsons’ Rickmansworth branch as Branch Manager. In February 2022, Mr Walker was moved to the Company’s Chorleywood branch because someone had been recruited into his role at the Rickmansworth branch.

Upon relocating to the Chorleywood office, Mr. Walker’s remuneration package included a commission structure that accounted not only for his personal sales at Chorleywood but also for a share of the turnover generated by the Rickmansworth office. On 1 May 2023, Mr Walker entered the office to find an envelope on his chair which contained a letter entitled “contract amendment.” The letter included a new commission structure which did not include commission related to the turnover of the Rickmansworth branch, which was more successful and busier than the Chorleywood branch.

On 3 May 2023, Mr Walker was informed that the person who had been recruited into his role at the Rickmansworth branch had resigned, so he should ignore the letter of 1 May 2023. He was then asked to temporarily return to the Rickmansworth office, until the Company found someone new.

Prior to his return, he had not been informed that the Branch Manager role would be split between himself and a junior colleague, with his responsibilities limited to handling higher-value sales.

Before Mr Walker returned, the junior colleague had moved to the desk at the back of the Rickmansworth office – a location that held both symbolic and practical significance. It was traditionally occupied by the Branch Manager, including Mr Walker himself, and it was where the books and ledgers were kept.

Mr Walker was expected to sit at the middle desk, which he interpreted as a demotion to an Assistant Manager rather than retaining his role as Branch Manager. He raised his concerns directly with Mr Young, the Company Director, and refused to return to the Rickmansworth office unless he could sit at the back desk.

Mr Young issued Mr Walker with the ultimatum: return to the Rickmansworth office or face disciplinary action. Five minutes after the start of the meeting, Mr Walker resigned with immediate effect.

Following his resignation, Mr Walker brought a claim for constructive dismissal.

Employment Tribunal Decision

Constructive dismissal arises when an employee resigns in response to their employer’s conduct amounting to a fundamental breach of contract—typically a breach of the implied duty of mutual trust and confidence, leaving the employee feeling they have no reasonable choice but to resign.

The Tribunal concluded that asking Mr Walker to sit at the middle desk on his return to the Rickmansworth office, was conduct that was likely to destroy or seriously damage the relationship of trust and confidence between the parties.

Employment Judge Reindorf KC observed that, due to the lack of clear communication surrounding Mr. Walker’s return, it was a “logical conclusion” for him to interpret being placed at the middle desk as an indication that he would assume the role of Assistant Manager, while his more junior colleague would be appointed Branch Manager.

In addition, Employment Judge Reindorf KC commented that either becoming Assistant Manager or becoming joint Branch Manager would have amounted to a demotion by comparation to the role he had at the Chorleywood branch.

Mr Walker therefore succeeded with his claim for constructive dismissal.

15 April 2025