Have you experienced a demotion or reduced pay at work? If so, you might be dealing with something called constructive dismissal. Constructive dismissal happens when an employee resigns because their employer broke the contract or created a hostile work environment.
If an employee feels compelled to resign because their employer has not honored their agreement or has created an unhealthy work environment, this resignation can sometimes be considered a termination.
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, even though the employee quits, they 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 more severe cases, you can seek additional damages for the stress and difficulties caused by your employer’s actions. This ensures you receive fair compensation when you are forced to leave a hostile work environment.
What qualifies as constructive dismissal?
Constructive dismissal cases require an extremely thorough examination. They’re rarely straightforward and are always closely investigated on a case-by-case basis. Although the interpretation can be ambiguous, the Supreme Court of Canada has outlined two main criteria:
A single unilateral act by the employer that breaches an essential term of an employee’s employment contract
This may include change in compensation, change in duties, change in work location, etc.
A series of acts by the employer that, taken together, show the employer no longer intends to be bound by the employment contract
The next step would be to look at the employer’s conduct over a period of time. Employees need to consider if their employer has made it extremely difficult for them to keep working in that place.
How to best move forward
Do you feel you need to resign as a result of your employer’s behaviour? There are a few things you can do to help protect yourself.
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’s 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 on.
As a Teamsters 987 member, you’re already one step ahead in getting the support and protection you deserve. If you feel that your employer has broken your employment contract or created an exceptionally hostile work environment, get in touch with us. We’re always here to help.
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