What is Constructive Dismissal?

The conduct of an employer under certain circumstances may entitle the employee to consider the employment relationship to have been terminated even though the employer considers it to be continuing. Where an employer makes a fundamental change to an essential term of the employment relationship this will allow the employee to treat the employment relationship as having come to an end and request damages for wrongful dismissal on the basis that they have been constructively dismissed. The dismissal is said to be "constructive" in the sense that the actions of the employer have the practical effect of terminating the employment relationship that had been in existence, as opposed to an express termination involving the employer telling the employee "your employment is terminated effective immediately" or words to that effect.

Constructive dismissal has always been a potential mine field for employees. In recent years, Ontario courts have significantly limited the availability of the remedy of constructive dismissal. It should be considered very carefully before any action is taken.

Should you require legal assistance, please email us at lawyers@grosman.com

...back to Employment Law Index