Desk move "demotion" = constructive dismissal

Desk move "demotion" = constructive dismissal

An employment tribunal has ruled that an estate agent was constructively dismissed after an enforced desk move which he perceived to amount to a demotion. Where did the employer go wrong?

Split managerial role

Mr Walker (W) had been the branch manager at Romans estate agents in Rickmansworth since 2017. In 2022, he was moved to manage another branch after a new manager was recruited for Rickmansworth, but he was asked to move back the following year following the replacement's resignation. The sales director (Y) then decided to split the branch manager role at Rickmansworth between W and a more junior colleague (G). G was advised of this at the pub but the plan was discussed with W in his office. In the pub, G told other office staff that the branch manager would be split and G moved to that back desk. G then sent a WhatsApp message telling W that he would be sitting in the middle desk on his return to Rickmansworth as Y had already moved to the back desk. W interpreted this as a demotion to assistant manager status, with G being the branch manager.

Resignation after desk move dispute

W complained about the desk move to Y and an argument took place during which W threatened to resign. Y told him to "go on then". W immediately typed up a resignation letter and then was asked to leave the premises. W phoned Y two days later to try and recover the situation but Y didn't return his call. W claimed constructive dismissal.

Constructive dismissal claim upheld

An employment tribunal ruled that W had been constructively dismissed. The desk move, which was perceived as a demotion, together with the failure to inform W that he would now be sharing the branch manager role and to give him information on how that was intended to work, was conduct that was likely to destroy or seriously damage the relationship of trust and confidence, so the employer had breached the implied term. It ruled that the desk move was a legal conclusion for W to draw when communication about the logistics of the move back to Rickmansworth had been poor.

Poor communication risks

W's constructive dismissal claim wasn't successful just because of the desk move issue but also because of the confusion about the new office hierarchy due to poor communication. This case is therefore a reminder of the importance of good communication, particularly when making any changes that may impact on an employee's role.

Tip. Don't make a senior employee sit at a desk associated with a lower-level role unless they have agreed to it. Office desk arrangements can be symbolically significant for some staff.

Tip. If an employee's role is to change, always give them an updated job description as soon as possible .

Trap. Where you demote an employee without their consent or the contractual right to do so, you risk that they will resign and bring a constructive dismissal claim. This will include changing their job title, status or responsibilities, even if their pay stays the same. If you do have a contractual right, you must still comply with the implied term of trust and confidence so always consult with them first.

The employer had failed to inform the employee about decisions made about his seniority within the office and desk allocations, and so he believed he had been demoted from the role of branch manager. This breached the implied term of mutual trust and confidence. Always communicate with staff about office changes that may impact on their role.