Constructive Dismissal
What Is a Constructive Dismissal?
A constructive dismissal occurs when one party to the employment agreement (typically the employer) unilaterally makes a substantial change to a fundamental term of the employment agreement without the other party’s (typically the employee’s) actual or implied consent and in the absence of a contractual right to do so. A constructive dismissal can also occur where the employer creates a "poisoned work environment", which is where the employer has created a hostile workplace through actions such as degrading comments, harassment, discrimination, and other offensive actions.
What Are Some Examples of Constructive Dismissal?
The most common types of changes that may trigger a constructive dismissal include:
- significantly reducing the employee’s compensation;
- demoting the employee;
- significantly changing the employee’s duties;
- significantly changing the employee’s reporting structure;
- laying off the employee in circumstances where an employment agreement does not explicitly or implicitly allow for a lay-off;
- requiring the employee to move to a different geographic location; or
- requiring the employee to work in a poisoned work environment.
What Are My Options If I Have Been Constructively Dismissed?
Generally speaking, when someone is constructively dismissed, they can:
- Accept the changes, no matter how severe;
- Reject the change, quit and pursue a claim for constructive dismissal. If you are successful, you are entitled to a severance package; or
- In certain circumstances, you may have the option of remaining employed but notifying your employer that you reject the change to the employment contract. If your employer does not respond to your rejection the employer will be found to have implicitly accepted your position.
Why You Should Contact Us
Constructive dismissal is a complex and difficult area of law. More to the point, quitting your job and claiming constructive dismissal is an incredibly high-risk scenario which you should avoid without first seeking legal advice from an experienced employment lawyer.
Our team at Cavalluzzo has helped countless employees navigate constructive dismissals to successful conclusions. If you think that you have been constructively dismissed, or you simply want to have a confidential discussion about your employment law rights, our team is here to help you understand your options and move forward towards a favourable outcome. Contact us for more information and to schedule an appointment.