Constructive dismissal on transfer

Rossiter v Pendragon Plc Clarke v Air Foyle Ltd (CA TLR 28 May)

Regulation 5(5) of the Transfer of Undertaking (Protection of Employment) Regulations 1981 made it clear that no new right was thereby intended to be created. If there were a right to claim constructive dismissal where there had been a substantial change in circumstances without breach of contract, that would arise apart from and not under the regulations. Only conduct of an employer amounting to repudiation would entitle an employee to terminate a contract without notice. Accordingly, an employee could not claim constructive dismissal on a transfer of undertaking on the basis that his working conditions had substantially changed to his detriment unless he could show a fundamental breach of contract by the employer.