What is a “constructive dismissal”?
This is where the employer’s conduct is regarded as a serious breach of the employment contract, showing that the employer no longer intends to be bound by the contract. An example of this would be where the employer refuses to pay salary. In these circumstances the employee is entitled to terminate their employment with or without giving notice. To succeed in a constructive dismissal claim, the employee must show that the employer’s action amounted to a fundamental breach of contract and that the employee resigned as a result of that breach and not for some other reason. It is important that employees seek employment law advice before taking any action in such a situation.
Constructive Dismissal is a legal term used to describe a situation where an employer does not say “you are fired” but makes substantial unwanted changes to your employment that allow you to treat the changes as “constructively” terminating your employment. Because the employment relationship is often a fluid relationship, changing over time, you generally can’t require your employer to keep your job exactly the same. Typically, over time, there will be changes such as increased pay, increased responsibility etc. In circumstances where an employer attempts to “force” a substantial change on an employee, the employee can refuse to continue to work in the changed circumstances, walk off the job, and claim for damages based on what the employer should have done which was to provide reasonable notice of termination of employment. The terms the Courts frequently use to describe the type of changes that would result in constructive dismissal are “fundamental” changes and changes “going to th
