Constructive Dismissal Services

Constructive Dismissal Process

Employer actions that can result in a constructive dismissal are when the employer breaches a written or unwritten term in the employee’s contract. If the breach is serious and the employee resigns their employment, the court may treat it as a dismissal. When a court treats a resignation this way, it allows the employee to pursue severance as if it were a wrongful dismissal.

Not every breach of an employment contract is sufficient to allow a resignation to be considered a constructive dismissal. Generally, it either has to be one major breach of a term of employment, or otherwise shown through the employer’s actions that they do not intend to follow the employment contract.

For example, a major breach could be that your wages have been rolled back significantly and you were never consulted or agreed to the reduction in wages. An example of the employer’s actions showing that they do not want to follow the employment contract would be allowing a toxic workplace to continue, despite the unwritten understanding that every employee is entitled to be treated with respect and dignity. 

Please also note that not having a written employment contract does not prevent an employee from claiming constructive dismissal: in that case, we would establish your employment terms by reference to what happened in practice: your job duties, compensation, etc., and then show how elements of that have changed.

Causes for Constructive Dismissal

There many things that can cause or contribute to a strong constructive dismissal argument, but they would include:

  • Compensation (wages) cuts and other changes
  • Demotions, or title or duty changes
  • Taking away privileges
  • Taking away reporting employees
  • Lay-offs
  • Suspensions (and possibly other discipline)
  • Changes to working conditions, location, etc.
  • Changes to management structure
  • Discrimination 
  • Harassment / Bullying
  • Generally hostile or unsafe work environment

The lawyers at Bow River Law are skilled at analyzing the likelihood that a given situation is a constructive dismissal. We can help navigate the legal situation both during the employment relationship and after it ends, for employees or employers.

Cautionary Notes

  • If you are experiencing changes of any kind at work, it is useful to get legal advice sooner than later.  Employers have lawyers, and many employers are aware of the risk that what they are doing could amount to constructive dismissal.  If you try to handle employment changes without the advice of a lawyer, you may not be protecting your interests properly and you may be at a disadvantage if the employer has a lawyer early-on and you do not.  Let us help you even the playing field.
  • If you have already quit your job, you may still have a strong constructive dismissal claim against your employer.  Let us help you.
  • If you are an employer, we can help you make necessary organizational changes while reducing your risk of a constructive dismissal claim.  Let us help you.

Constructive Dismissal FAQ

  • My boss just demoted me. What should I do?

    A demotion is often considered “constructive dismissal”, which is where an employee is allowed to resign and sue for severance as if he or she were dismissed. If your boss had demoted you, you should speak to an employment lawyer right away about your options.

  • My company just cut my salary. Can they do that?

    A salary cut is often considered to be “constructive dismissal”, which is where an employee is allowed to resign and sue for severance as if he or she were dismissed.

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