ACCA Corporate and Business Law (F4) Certification Practice Exam

Constructive dismissal occurs when an employee resigns from their job because their employer has breached fundamental terms of their contract, making it untenable for the employee to continue working. This breach can include actions such as significantly altering job duties, reducing pay, creating a hostile work environment, or failing to provide a safe workplace. In essence, the resignation is considered a response to the employer's failure to uphold their obligations, rather than a voluntary quitting motivated purely by personal dislike or other unrelated factors.

In this context, the option indicating that an employee resigns due to an employer breaching their contract accurately captures the essence of constructive dismissal. It illustrates that the decision to leave was not made lightly but was necessitated by the employer's failure to adhere to the terms agreed upon in the employment contract. The employee is essentially forced into resignation due to the circumstances created by the employer.

The other choices do not align with the legal definition of constructive dismissal. For example, simply being sacked for causing trouble or due to disciplinary offences does not involve a breach of contract by the employer. Similarly, resigning out of dislike for a manager does not necessarily indicate a breach of contract by the employer, as it is based more on personal feelings rather than substantive contractual failures.