Glossary > Employment Law > Termination And Dismissal > General

Constructive Dismissal

Constructive dismissal occurs when an employer makes working conditions so difficult or intolerable for an employee that the employee feels forced to resign. Despite not being fired outright, the resignation is considered involuntary due to the actions or behavior of the employer.

Example #1

For example, if an employee is consistently subjected to harassment, unfair treatment, or a significant demotion without justification, they may choose to resign and claim constructive dismissal.

Example #2

Another example could be an employer drastically reducing an employee's salary or changing their work hours without agreement, leading the employee to feel compelled to leave.

Misuse

An employer might misuse constructive dismissal by creating a hostile work environment to push out employees without formally terminating them. This misuse is harmful as it allows employers to avoid legal obligations such as providing severance pay or facing wrongful termination claims. Protecting against misuse safeguards the rights of employees and ensures fair treatment.

Benefits

One benefit of recognizing constructive dismissal is that it protects employees from enduring unacceptable working conditions. By acknowledging this concept, employees have a recourse to address situations where their employer's actions force them to leave a job, providing a layer of legal protection.

Conclusion

Constructive dismissal is a crucial concept in employment law as it safeguards employees from unfair treatment and empowers them to seek recourse when faced with intolerable working conditions. By understanding and addressing cases of constructive dismissal, we uphold CAP's mission of promoting fairness and transparency in the marketplace.

Related Terms

Wrongful TerminationRetaliation