How Does Constructive Dismissal Differ From Wrongful Termination?

Constructive Dismissal Differ From Wrongful Termination

When employers change essential terms of employment, such as compensation (salary and benefits), job responsibilities, reporting functions within the company hierarchy, working conditions or location of work, without employee agreement, this could constitute constructive dismissal. Employees who believe they are the victim of this type of treatment may be able to claim monetary compensation.

It’s important to understand how constructive dismissal differs from wrongful termination. While there is some overlap, a constructive dismissal is defined as when an employer makes your workplace intolerable to the point that you feel forced to resign, whereas wrongful termination refers to situations where an employee is fired for a reason unrelated to their performance or conduct.

As such, a constructive dismissal is more subjective and difficult to prove in comparison to a wrongful termination. A court or tribunal will consider the situation and determine whether or not it constitutes constructive dismissal.

A key factor that distinguishes constructive dismissal from wrongful termination is the duration of time of the intolerable working conditions. This duration is determined by the length of your employment contract or, if no employment contract exists, the period of time you have worked for your employer.

While there are many factors that can influence a constructive dismissal, the central issue is that your employer made your working conditions intolerable to the point that you felt you had no choice but to resign. In addition, in order to successfully make a constructive dismissal claim, you must have objected to the change or incidents that formed the basis for your resignation within a reasonable amount of time of their occurrence.

How Does Constructive Dismissal Differ From Wrongful Termination?

What is considered a substantial change can vary depending on the context of your case, but some examples of a significant change would be reducing your salary by more than 10%, forcing you to move offices or locations in a way that significantly affects your career development or prestige, requiring you to work shifts that conflict with your personal life, reversing a previously agreed upon promotion, or removing the right to a job-related appeal.

Breaches of express or implied employment terms can qualify as constructive dismissal toronto, but it is often easier to show a breach of an explicit term than a breach of an implied term. The most common examples of breaches of explicit terms include canceling a benefit, changing an established policy, imposing a pay decrease, or failing to maintain safe working conditions.

Similarly, the most common breach of implied terms involves a failure on the part of an employer to adequately address/investigate your grievance or to maintain a work environment that is safe and healthy. This includes sexual harassment, discrimination, and unwarranted discipline.

In cases where it is not possible to reach an agreement with your employer on how to resolve the issues, you should always contact a wrongful termination lawyer or constructive dismissal lawyers near me before taking action. You will be deemed to have condoned the changes to your working conditions if you remain employed after your employer has made these unilateral changes, so it is essential that you take prompt action and seek legal advice.

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