A constructive dismissal occurs when an employer makes a unilateral and fundamental change to a term or condition of an employment contract (such as the terms surrounding the compensation of an employee), without providing reasonable notice of that change to the employee. Such actions amount to a repudiation of the contract of employment of the employer, whether or not he intended to continue the employment relationship.
A change to the contract can also be more aggressive in nature, such as bullying or intimidation tactics, or moves made by an employer that potentially affect your health.
Therefore, the employee can treat the contract as wrongfully terminated and resign, which in turn gives rise to an obligation on the employer’s part to provide damages in lieu of reasonable notice.
Potter v. New Brunswick Legal Aid Services Commission 2015 SCC 10 highlighted the two-branch test for constructive dismissal, where the Court must first identify an express or implied contract term that has been breached and then determine whether that breach was sufficiently serious to constitute constructive dismissal. If it does not constitute such a breach, it must be found to substantially alter an essential term of the contract.
If you believe you have been the victim of constructive dismissal, it is important to get into contact with as soon as possible.
Let our team PROTECT YOU from being taken advantage of, and ensure to FURTHER YOUR INTERESTS by thoroughly assessing the changes that your current or former employee made, and potential amount of notice and compensation owed as a result of termination.
If you have questions about your particular situation, please contact one of our employment lawyers today.
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