A constructive dismissal occurs when the employer makes unilateral changes to fundamental terms and conditions of employment, causing the employee to involuntarily resign from their employment. While the employer has not formally dismissed the employee, in essence, through its unilateral actions, the employer has repudiated the employment relationship.
Not every change to the employment relationship will give rise to a constructive dismissal. No workplace is static of course. The employer can make some changes to the employment relationship. If you do not like a certain change, this does not automatically mean that you have been constructively dismissed. It is only when the change (or series of changes) is unilateral and fundamental in nature, that a constructive dismissal occurs.
A constructive dismissal may also occur if the employee is being subjected to a toxic or hostile work environment, such that it would be unbearable to continue working in that environment. Examples include discriminatory conduct, harassment, bullying or other forms of bad faith conduct.
A constructive dismissal may be triggered in the following situations (this is not an exhaustive list):
- A demotion
- Reduction in pay and benefits
- Change in duties
- Change to work schedule
- Change in location of work
- Bullying, harassment, or bad faith conduct
If you have been constructively dismissed, you may be entitled to financial compensation. Contact JPAK Employment Lawyers today.