Constructive Dismissal

Do I Have An Employment Case?

Have a constructive dismissal claim? This can occur if an employer alters a fundamental aspect of the job without the employee’s agreement, such as demotion, change in salary, major change in responsibility, and not being allowed to return back to work after a disability leave.

Don’t let this happen to you without speaking to our constructive dismissal lawyers.

Constructive dismissal occurs when an employee feels forced to resign because their employer has made significant changes to their job or work environment, making it intolerable or vastly different from the original terms of their job. Even though the employee formally resigns, the law may interpret this as a termination caused by the employer’s actions.

Constructive dismissal happens when an employer makes significant changes to an employee’s job that effectively force them to resign. There are two types of constructive dismissal: monetary and non-monetary.

Monetary Constructive Dismissal - This occurs when an employer significantly reduces an employee’s wages or working hours—typically by more than 10%. If your salary is cut substantially or your scheduled work hours are reduced beyond a reasonable threshold, it may be considered a monetary constructive dismissal.

Non-Monetary Constructive Dismissal - Even if your pay remains the same, constructive dismissal can still occur if your employer’s actions make it impossible to continue working. This can include changes to job responsibilities, employment conditions, or treatment by management.

• Reduced Compensation – A major salary cut or loss of benefits may be grounds for constructive dismissal.
• Demotion – If you lose key responsibilities or your title is downgraded (e.g., from Chief Financial Officer to Office Administrator), especially if you are now reporting to a former subordinate.
• Relocation – Being transferred to a distant work location without agreement, such as being moved from Toronto to Halifax after nearly two decades in one office.
• Schedule or Shift Changes – A significant shift change, such as moving from early morning to late evening hours, can be considered constructive dismissal.
• Increased Workload – If your workload increases drastically, making it nearly impossible to manage caregiving responsibilities for children or other dependents.
• Lack of Workplace Accommodations – If an employer refuses to provide necessary accommodations for a medical condition or injury, such as failing to adjust duties for an employee with a broken hip.
• Unjustified Suspensions – Being suspended indefinitely or without proper explanation, whether with or without pay, may also constitute constructive dismissal.

If you believe you are experiencing constructive dismissal, it’s important to understand your rights and explore your legal options as soon as possible.

Think You’re Dealing With a Constructive Dismissal?

If your employer has made significant changes to your job, you may have a case for constructive dismissal. Follow these 3 key steps to protect your rights.

1. Do Not Accept the Change - If your employer has cut your pay, changed your role, or altered your working conditions in a fundamental way, do not agree to it without objection. For example, if your salary is significantly reduced and you continue working without protest, it may be seen as acceptance of the change—making it much harder to successfully establish constructive dismissal later.

2. Keep Thorough Records - Document everything related to the changes in your employment. Save emails, text messages, and written notices about your job modifications. If your claim involves non-monetary constructive dismissal, such as a toxic work environment, keep a record of incidents, including dates, details, and those involved. Having strong evidence can make a significant difference in your case.

3. Speak to an Employment Lawyer Before Resigning - Quitting too soon could put your claim at risk. Many employees leave their jobs without realizing they have been constructively dismissed. A lawyer can assess whether your situation meets the legal definition and help you determine the best course of action.

If you resign without a solid case for constructive dismissal, you may lose out on severance or other entitlements. Consulting a legal expert first ensures that you make an informed decision and protect your financial future.

If you’ve been wrongfully dismissed, we’re here to answer your questions and help you take action.

If you have been constructively dismissed, you may be eligible to claim full severance pay through a wrongful dismissal lawsuit. The amount of severance you can receive depends on several key factors, including:

• Your Job Role – The nature and seniority of your position can impact severance calculations.
• Length of Employment – Generally, the longer you have worked for your employer, the higher your severance entitlement.
• Your Age – Older employees may receive higher severance due to the challenges of securing new employment.
• Job Market Conditions – The availability of comparable positions based on your skills, experience, and qualifications can also affect severance.