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€58,000 Constructive Dismissal Award: What Employers Can Learn from a Fundamentally Flawed Grievance Process

A recent Workplace Relations Commission (WRC) decision serves as a stark reminder to employers that how workplace grievances are handled can be just as important as the grievance itself.

In this case, a hospital clerical worker was awarded over €58,000 for constructive dismissal after the WRC found that her employer’s grievance management process was “fundamentally flawed”.

For employers, this decision highlights the real financial and legal consequences that can arise when grievance procedures are poorly managed, unclear, or unfairly applied.

What Happened?

The employee resigned after being instructed to attend mediation with a colleague — without ever being provided with a copy of the grievance made against her.

Despite repeatedly requesting sight of the complaint, management proceeded with mediation and other workplace changes, leaving the employee:

  • Unaware of the specific allegations against her

  • Excluded from normal reporting structures

  • Isolated within her role

  • Unable to rely on the grievance process to protect her position

The WRC accepted that the employee had been denied basic procedural fairness and concluded that a reasonable employer would have recognised the grievance process was fundamentally flawed.

As a result, the employee was left with no option but to resign.

Why the Employer Lost the Case

From an employer perspective, this case did not turn on whether the grievance itself was justified. Instead, it turned on process, fairness, and transparency.

Key failures identified by the WRC included:

  • ❌ Failing to provide the employee with a copy of the grievance

  • ❌ Directing the employee into mediation without knowing the allegations

  • ❌ Allowing the grievance process to drag on without resolution

  • ❌ Making structural workplace changes during an unresolved dispute

  • ❌ Undermining the employee’s role and authority

These failures ultimately led the WRC to conclude that the employee could no longer reasonably be expected to remain in employment.

The Cost to the Employer

The award totalled €58,681.60, including:

  • Compensation for loss of earnings

  • A significant sum reflecting loss of pension benefits after 23 years’ service

For employers, this case illustrates that constructive dismissal awards can extend far beyond salary alone, particularly where long service and pension entitlements are involved.

What Employers Should Take From This Decision

Grievance procedures are designed to protect both employees and employers — but only if they are followed correctly.

Employers should ensure that:

  • Employees are fully informed of complaints made against them

  • Grievance processes are transparent, timely, and documented

  • Mediation is voluntary, informed, and procedurally fair

  • Workplace changes are carefully managed during disputes

  • Managers are trained to handle grievances consistently and lawfully

Many disputes escalate not because of misconduct, but because processes break down.

How Ormonde Solicitors Help Employers Get This Right

At Ormonde Solicitors, we now focus on helping employers prevent disputes before they reach the WRC.

Having previously acted for employees, we understand exactly how procedural missteps are identified, challenged, and ultimately relied upon in claims of constructive dismissal.

We support employers by:

  • Reviewing and strengthening grievance and disciplinary procedures

  • Advising on fair process before mediation or investigation begins

  • Training managers on handling complaints lawfully and confidently

  • Reducing the risk of costly claims through early, practical advice

A Preventable Outcome

This case was not inevitable. With proper legal guidance and a fair grievance process, the outcome — and the cost — could likely have been avoided.

For employers, the lesson is clear: process matters.

If your organisation is dealing with a grievance, restructuring, or workplace conflict, early legal advice can make the difference between resolution and litigation.

📞 Contact us today for confidential guidance.

Disclaimer: This article is for general information purposes only and does not constitute legal advice.

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    We are honoured to share that Ormonde Solicitors & Employment Matters has been named the Business All-Star Labour & Employment Law Practice of the Year 2025. This prestigious recognition from the All-Ireland Business Foundation reflects our ongoing commitment to fair workplace practices and expert legal representation, led by the dedication and vision of Sean Ormonde. We are deeply grateful to our loyal clients, dedicated team, and the AIBF for their continued support and trust.