CONSTRUCTIVE DISMISSAL FOR EMPLOYEES

Constructive dismissal occurs when your employer makes significant changes to the terms and conditions of your employment without your consent. These changes can make it unreasonable for you to continue working in your role, effectively forcing you to resign. Under Canadian law, this resignation may be treated as a termination, entitling you to compensation.

Common examples include:

• A significant reduction in your salary or benefits
• A demotion or major change to your job duties
• Relocation to a distant workplace (or changing your role from remote to hybrid or in-person)
• A toxic or hostile work environment
• Fundamental changes to work hours or schedules

Not every change in employment terms amounts to constructive dismissal. The key factors are:

• The change must be substantial and not permitted by  original employment contract.
• You did not agree to the change.
• The change negatively impacts your role, compensation, or working conditions.

Consulting an employment lawyer is essential to determine whether your case meets these criteria.

• Document Everything: Keep records of changes, communications, and any relevant incidents.
• Do Not Resign Immediately: Resigning without seeking legal advice may jeopardize your case.
• Consult an Employment Lawyer: A lawyer can help you assess your situation and negotiate with your employer or pursue legal action if necessary.

If your case is successful, you may be entitled to:

• Severance, which can be up to two years of lost income and benefits
• Compensation for additional harms, such as mental distress in certain cases

There is no specific time limit. However, you will be expected to object within a reasonable time; failure to do so can be deemed to be acceptance and you may lose the right to claim constructive dismissal. An employment lawyer can help you to strategically raise your concerns.

The employer has the opportunity to remedy the situation by reversing the decision. Alternatively, they may insist, which could give rise to a constructive dismissal claim. In some cases, it becomes clear that the relationship is no longer viable, and a severance package can be negotiated.

An employment lawyer can:

• Assess whether your situation qualifies as constructive dismissal
• Help you negotiate a resolution with your employer
• Represent you in legal proceedings if needed
• Ensure you receive appropriate compensation