Have you experienced a demotion or reduced pay at work? Has your work environment become hostile? If so, you may be dealing with constructive dismissal. In Alberta, constructive dismissal can happen if the employer changes the employee’s work conditions significantly, violates their employment contract, or creates a toxic work environment – causing the employee to quit their job.
Even though an employee resigns, Alberta employment laws may still consider it a constructive dismissal, making them eligible for termination pay or other compensation.
Some examples include:
- Significant Pay Reduction – A substantial, unjustified cut in salary or benefits.
- Demotion – Assigning the employee a lower-ranking position without a valid reason.
- Increased Workload or Unreasonable Demands – Making excessive or unfair workload changes.
- Changes in Job Duties – Altering the core responsibilities of the job drastically.
- Relocation Without Notice or Agreement – Moving the employee to a distant location that makes it difficult to continue working.
- Toxic Work Environment – Allowing harassment, bullying, or discrimination to persist without intervention.
- Unsafe Working Conditions – Failing to provide a safe workplace, forcing the employee to leave for their safety.
- Withholding Pay or Benefits – Not paying wages on time or removing benefits without reason.
- Forced Resignation Pressure – Repeatedly suggesting or pressuring the employee to quit.
- Unilateral Changes in Work Hours – Drastically altering shift times or work schedules without proper notice or consent.
The first thing you should do if you find yourself in a similar situation is to do your research. This article will help educate you on the law, your rights, what qualifies as constructive dismissal, and so much more.
Why is constructive dismissal important?
In cases of constructive dismissal, employees may still have the right to claim wrongful dismissal. The company treated the situation as though they had let go of the employee without notice or termination pay.
If your resignation is ruled as constructive dismissal, you can claim pay instead of a termination notice. In serious situations, you can also seek additional damages for the stress and difficulties caused by your employer’s actions. This ensures that you receive fair compensation when leaving a hostile work environment.
What qualifies as constructive dismissal?
Constructive dismissal cases require careful examination. These cases are rarely straightforward and always assessed on a case-by-case basis. While interpretations can vary, the Supreme Court of Canada has identified two key criteria:
- A single unilateral act by the employer that breaches an essential term of an employee’s contract.
Examples can include a pay cut, unpaid wages, significant changes in job duties, a forced move, or an unfair shift change.
- A series of actions by the employer indicating they no longer intend to follow the employment contract.
A pattern of behavior, like creating a toxic work environment or cutting responsibilities, can also qualify. This is especially true if it makes it hard for employees to keep working there.
If an employer’s actions make it difficult for employees to keep working, they may have a constructive dismissal case.
What is an employee entitled to?
If you had to quit because of unfair treatment, you might qualify for compensation under Alberta’s labour laws. Your rights depend on the circumstances of your departure.
Termination pay
Most employees are entitled to termination pay if they are let go without just cause. In Alberta, this can range from one to eight weeks of pay, depending on how long you’ve worked for the employer.
Severance pay & damages
In cases of wrongful dismissal or constructive dismissal, courts may award up to two years of pay as compensation. This amount considers factors like your position, length of service, and how long it might take you to find a new job.
Other entitlements
If you’re part of a labour union, your collective agreement may provide additional rights. These may include extended severance, benefits, or job placement support. It’s important to check your collective bargaining agreement. Get legal advice if you are unsure about your rights.
Understanding your rights under Alberta’s labour laws can help ensure you receive fair treatment when leaving a job. If you believe someone wrongfully dismissed you, speak with an employment lawyer or union representative for guidance.
What can an employee do? How to best move forward?
Do you feel the need to resign because of your employer’s behaviour? Here are a few things to help you protect yourself in the process.
The best thing to do is read your employment contract. Learn what your employers have explicitly (and sometimes implicitly) promised to their employees. If you don’t have a copy of your contract, ask your supervisor for one. Having a copy of your contract will help avoid potential conflicts or issues down the line.
Once you’ve read your contract over, make sure there’s no misalignment. If there are any issues in your employment contract, discuss them with your supervisor. This will ensure you’re both on the same page should an issue arise later.
If your employer has made changes that negatively impact your employment, you may have further next steps, which could include making an employment standards complaint.
Employees should file a complaint within 90 days of the change. In some cases, an extension may be granted under subsection 240(3) of the Code. You can also file a claim with the Alberta Labour Relations Board within the same timeframe.
Getting help from a union or an employment lawyer can help you know your rights. They can help you navigate the process, determine potential compensation or damages, and protect your rights.
As a member of Teamsters 987 in Alberta, you are already ahead in getting the support and protection you need. If you think your employer has broken your contract or made your workplace hostile, contact us. We’re always here to help.
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