Knowing the Basics of Constructive Dismissal

Basics of Constructive Dismissal

When employers breach employment contracts, it can be difficult to discern between lawful termination and unlawful constructive dismissal. Unfortunately, a lot of employers are very skilled at disguising their actions behind the term “constructive dismissal.” This is why it is critical that both employees and businesses understand what constitutes constructive dismissal and how to protect themselves against these sneaky tactics.

One of the most common instances in which a worker may be able to claim constructive dismissal is when their employer unilaterally and significantly alters their terms of employment without their consent. This can include changes to salary, hours, location, duties, and responsibilities. However, the most significant change must either make the employee’s working conditions intolerable or fundamentally alter their job status. The courts use a variety of factors when considering a constructive dismissal claim, such as the duration of time between the alleged breach and the resignation (i.e., whether the breach was a ‘last straw’).

While these are fairly stark examples of a potential constructive dismissal case, there are many other less overt forms of behaviour that can lead an employee to resign from their employment. Oftentimes, these less overt incidents happen over the course of a long period of time and build up to an intolerable point where the employee simply cannot take it any longer.

For example, suppose your employer reduces your salary by half but offers no explanation or justification for this change. You express your objections to management and ask for clarification, but you are ignored. Eventually, you find that you can no longer cover your expenses and mortgage and decide to resign as a result of this intolerable work environment.

Knowing the Basics of Constructive Dismissal

This could be considered a constructive dismissal lawyer case, but you will likely face difficulty bringing your claim to court. In this situation, you would be better off seeking a negotiated settlement with your employer to avoid the added expense of litigation.

Another type of case that our Toronto constructive dismissal lawyers regularly handle is when an employee resigns from their employer due to harassment or discrimination. These situations can be more complicated to resolve, but it is possible to bring a claim to Small Claims Court or Superior Court based on the amount of damages sought.

It is vital that you contact our office and schedule a consultation with one of our experienced employment law counsel. We will listen to your situation, help you understand the strength of your claim and determine the best course of action to move forward.

Whether you are an employee who believes you were unfairly dismissed or an employer undergoing restructuring, knowing the basics of constructive dismissal is essential. Contact Bune Law today to book your consultation.

Lior Samfiru discusses everything you need to know about constructive dismissal in this episode of The Employment Law Show. Watch the full video here. In times of personal hardship or crisis, offering compassionate leave policies and bereavement support demonstrates genuine care for employees’ well-being. Providing additional time off, flexible return-to-work options, and access to support networks helps individuals navigate challenging circumstances with dignity and support.