Constructive Dismissal Occur Without a Formal Termination
In a typical scenario where an employee is involuntarily terminated, it is clear that the employer has breached their employment contract and that they are entitled to compensation. In many cases, however, it is not as cut and dry. Instead, a claim of constructive dismissal may occur without any formal termination, when an employer’s behaviour makes working conditions so intolerable that the employee feels compelled to quit their job.
In these cases, it is up to the employee to prove that their working conditions are so intolerable that they can no longer work and that the change in those conditions amounts to a repudiation of a fundamental term of their employment contract. The definition of what constitutes a fundamental term will vary depending on the individual circumstances. It can include anything from a significant shift in compensation to a change in the duties and responsibilities of a role, or even the moving of an employee to a different workplace location that is substantially inferior.
For example, suppose that your employer implemented a new system in which sales incentives are determined by performance. As part of the transition, management placed unreasonable pressure on the team to meet sales targets, despite not providing sufficient training. As a result, employees struggled to meet these expectations and their work became stressful and physically taxing. Eventually, you become so overwhelmed that you suffer from stress-related illnesses and decide to resign due to the intolerable conditions in your workplace.
Can Constructive Dismissal Occur Without a Formal Termination?
If you are experiencing a significant change in your employment terms that you consider to be constructive dismissal, it is important that you approach the matter formally by writing to your employer and describing the changes that you find to be unacceptable. Ideally, you should do this in advance of resigning to give your employer an opportunity to discuss the matter and offer an appropriate response.
Often, the most serious breaches of an employment contract are the ones that are acted on quickly and deliberately. This is because the court will often look at the totality of circumstances when deciding whether there has been a repudiation of an essential term. For this reason, it can be very difficult to make a constructive termination claim if you have not waited until your final day to submit a resignation letter.
The best way to protect your rights in these situations is to stay informed by regularly consulting an experienced employment lawyer. Achkar Law specializes in employment law matters and can help both employers and employees understand their rights in the workplace. Contact us today for advice. We serve clients throughout Ontario, including Toronto. Our office is located in downtown Toronto, and we can provide consultations over the phone or via Skype. We also handle wrongful dismissal claims on a retainer basis. You do not have to hire a lawyer just because you think you may be the victim of a constructive dismissal; we can assess your case and determine if you have grounds for a claim without any upfront fees.
