More and more changes at work arrive through software: a scheduling app cuts shifts, a new pay rule is applied by the system, monitoring is switched on, or targets are raised by an algorithm. Some employees decide they cannot carry on and resign. In Great Britain the law can treat that resignation as a dismissal by the employer. This is usually called constructive dismissal, although the statute does not use that phrase.
The short answer: for unfair dismissal purposes, an employee is dismissed if they terminate their contract, with or without notice, in circumstances in which they are entitled to terminate it without notice by reason of the employer's conduct (Employment Rights Act 1996, s95(1)(c)). The Equality Act 2010 uses a similar rule for discrimination claims about dismissal (Equality Act 2010, s39(7)(b)).
What the law says
- Unfair dismissal: section 95(1) lists when an employee is dismissed. Besides the employer ending the contract and a limited-term contract ending without renewal, it includes the employee ending the contract where they are entitled to end it without notice because of the employer's conduct (s95(1)(c)).
- Discrimination: under section 39 an employer must not discriminate against or victimise an employee by dismissing them. Section 39(7)(b) says dismissing includes termination by an act of the employee, including giving notice, in circumstances where the employee is entitled, because of the employer's conduct, to terminate the employment without notice (s39(7)(b)).
- The test is about the employer's conduct: both provisions turn on whether the employer's conduct entitled the employee to leave without notice. Not every unwelcome change does that, and the answer depends on the facts and the contract.
Showing that a resignation counts as a dismissal is only the first step. For unfair dismissal, the usual rules then apply, including the qualifying period and whether the dismissal was fair; see unfair dismissal and AI.
Where apps and algorithms come in
- Changes to pay or hours: a system that changes how pay is worked out or cuts contracted hours can raise questions about the contract. Check what your written terms say; see the written statement of particulars and unauthorised deductions.
- Targets and monitoring: new automated targets or monitoring can be part of the picture, alongside how they are introduced and enforced. See AI monitoring at work and warehouse quotas and algorithmic management.
- Discipline by system flag: how flags from a tool are handled can matter; see grievances and discipline.
- "The system did it": a change made through software the employer chose to use can still be the employer's conduct for these purposes, even if a vendor set the tool up.
For employees
- Raise it first: put your concern in writing, ask what changed and why, and consider a formal grievance.
- Keep evidence: screenshots of the app, messages about the change, payslips and rotas before and after.
- Get advice before resigning: resigning is hard to undo, and whether the employer's conduct is serious enough depends on the facts.
- Time limits are short: see Acas early conciliation and, for discrimination claims, time limits and proof.
For employers
- Check the contract before changing a rule in the system: a setting that alters pay, hours or duties may need agreement or consultation.
- Explain changes in plain words before they take effect, and give people a way to raise problems with a person.
- Act on grievances about automated changes rather than leaving them to the tool.
- If you want to end a dispute by agreement, see settlement agreements.
This page covers Great Britain and is general information on the law as at 2 November 2026, not legal advice.
Questions and answers
Can resigning count as being dismissed?
Yes. Under section 95(1)(c) of the Employment Rights Act 1996 an employee is treated as dismissed if they end the contract in circumstances in which they are entitled to end it without notice by reason of the employer's conduct.
Does a change made by an app or algorithm count as the employer's conduct?
A change made through software the employer chose to use can be the employer's conduct. Whether it is serious enough depends on the facts and the contract.
Does the Equality Act cover constructive dismissal?
Section 39(7)(b) of the Equality Act 2010 treats termination by the employee, where they are entitled to leave without notice because of the employer's conduct, as dismissal for section 39.